Board Diversity and Efficiency of Universities registered in Kenya

Abstract

With the growing recognition of the importance of diversity, it has gained traction as an essential determinant of institutional efficiency. To enhance optimal efficiency, board diversity plays an integral role in minimizing uncertainty, augmenting knowledge sharing, improving resource utilization and crafting overall institutional strategy. The study aimed to determine how board diversity affects the efficiency of universities registered in Kenya. The study was grounded on the agency theory the positivist research paradigm. A descriptive longitudinal research design was employed where a census survey of 75 public and private universities in Kenya was undertaken. Testing of the hypothesis involved the application of the fixed effect regression model as the primary estimation method. The findings indicated a significant relationship between board diversity and efficiency. The results from this research extend the boundaries to the existing knowledge in the concept of board diversity and the efficiency of individual universities in Kenya by identifying the board diversity dimensions that influence efficiency decisions. The conclusions from the study may be useful to the governance models to enhance decision-making among the players in the higher education sub-sector, for instance, to increase efficiency, university boards must make a greater effort to support board diversity and establish the dimensions within the board diversity that are relevant to efficiency enhancement.

Keywords: Board diversity, Efficiency, and Universities registered in Kenya