Impact of non-executive directors’ expertise on product quality management: the moderating role of board gender diversity

The expertise of non-executive directors (NEDs) strengthens product quality management through effective oversight and strategic guidance, leading to improved governance and more informed decision-making that supports organisational efficiency, reputation, and long-term sustainability. This study examines the influence of NEDs’ expertise on product quality management and evaluates the moderating role of board gender diversity in this relationship. Data were obtained from the Bloomberg database using a purposive sampling approach based on clearly defined inclusion and exclusion criteria. The final sample comprises 387 non-financial companies listed on the London Stock Exchange over a 19-year period from 2006 to 2024. Preliminary diagnostic tests justified the application of advanced econometric techniques, including fixed-effects estimation with Driscoll–Kraay standard errors, the Augmented Mean Group (AMG) estimator, and the two-step difference Generalized Method of Moments (GMM). The findings indicate that NED expertise in industry, finance, environmental management, information technology, and climate change has a positive, statistically significant effect on product quality management. Furthermore, board gender diversity positively moderates the relationship between NEDs’ industry and IT expertise and product quality management outcomes. Overall, the results highlight the critical role of non-executive directors in strengthening quality management systems, improving organisational performance, enhancing customer satisfaction, and supporting sustainable competitive advantage.