Role of board in promoting work-life initiatives: Implications for organizational gender diversity and financial performance

Work-life balance has emerged as a critical issue for construction and engineering organizations. These organizations are not capitalizing on the benefits of gender diversity in improving work-life initiatives and enhancing organizational performance. This study aims to enhance our understanding of these links. Drawing on gender difference theory, signaling theory, and the resource-based view, this study investigates how gender-diverse boards influence the adoption of work-life practices, which, in turn, promote gender diversity in management, professional roles, and nonmanagement positions, leading to improved financial performance. We used a time-lagged quantitative research design and archival data to test the study's predictions in 219 construction and engineering organizations operating in Australia. Path analysis indicated that board gender diversity is positively associated with work-life initiatives which enhance gender diversity across the three hierarchical levels. The strongest association was observed at the professional level, where gender diversity was also linked with improved financial performance. The findings support gender difference theory, extend signaling theory, and refine the resource-based view. They indicate a value in studying an end-to-end process from the top (board) to the bottom line (financial performance). These insights encourage practitioners to prioritize gender diversity in their board for promoting work-life balance and in professional roles for driving financial competitiveness.