Greenfield versus M&A: The Influence of Female Director Appointment and the Moderating Effect of Board Composition

Research suggests that the entry of women into a firm's upper-echelon teams may shift its strategic trajectories, reflecting new entrants’ risk propensity, cognition, and knowledge. Accordingly, this study posits that newly appointed female directors influence board decision-making, shaping establishment mode choice between greenfield and M&A. Nevertheless, their influence may be contingent upon the board context. This study further examines the moderating effects of female chair and incumbent directors’ international experience. Using 2,009 observations from Taiwanese manufacturing firms, this study finds that following more female director appointments, firms show a greater tendency to enter a foreign country through greenfield (vs. M&A). The likelihood increases when a woman serves as board chair, as she tends to support new female directors and help build their presence in board discussions. However, incumbent directors’ international experience reduces the likelihood, as such experience enhances the feasibility of successful post-acquisition integration and implementation.