Assessing hybrid efficiency through data envelopment analysis: the role of board diversity in Italian benefit corporations

Purpose This study examines efficiency and governance characteristics in Italian Benefit Corporations, the first European adoption of the American Benefit Corporation model. These hybrid enterprises combine the pursuit of profit with legally protected common-benefit objectives embedded in their bylaws. The analysis explores how board composition influences firms' capacity to transform resources into value added with a dual purpose, contributing to profitability while generating resources for common-benefit objectives. Design/methodology/approach Using data envelopment analysis and truncated regression on a sample of 230 firms, the study measures efficiency and assesses whether board gender, age, and nationality affect performance outcomes. Findings The results indicate moderate to high economic-financial efficiency. Gender diversity is positively associated with efficiency, board age heterogeneity is negatively associated with efficiency, and nationality diversity shows no significant influence. Originality/value By integrating efficiency assessment with governance determinants, the study extends data envelopment analysis research to Benefit Corporations and connects the efficiency and corporate governance literature. The findings highlight that different dimensions of board diversity are associated with organisational efficiency in different ways, offering implications for the governance of hybrid organisations.