The Impact of Board Diversity and International Ownership on Organizational Performance in European Multinational Companies

Abstract

Cross-cultural management has become a critical component of strategic planning in international corporations, particularly within the diverse cultural landscape of Europe. This study examined the influence of cross-cultural management practices, specifically gender diversity and international ownership, on the organizational performance of European multinational companies. Organizational performance was assessed using two widely recognized financial indicators, Return on Assets (ROA) and Return on Equity (ROE). The research adopted a quantitative approach, utilizing secondary data collected from publicly available databases on a sample of European multinational firms. Statistical analysis was conducted using SPSS, including descriptive statistics, correlation matrices, and multiple regression models, to explore the relationships between cross-cultural variables and performance outcomes, while also assessing potential multicollinearity. The findings revealed weak and statistically insignificant relationships between the cross-cultural variables and financial performance indicators. Neither gender diversity nor international ownership demonstrated a significant predictive influence on ROA or ROE. Notably, the presence of negative coefficients in some cases may suggest limitations in current diversity strategies or the existence of structural and cultural barriers. The study offers implications for human resource and leadership practices, emphasizing inclusive leadership, employee engagement, and the adaptation of management frameworks to cultural dynamics. Future research should adopt more granular, qualitative approaches across broader contexts to better understand the evolving impact of cross-cultural factors on organizational performance.