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Diversity in boards has gained attention as a reflection of societal imbalances. The purpose of this paper is to investigate the impact of diversity in terms of both gender and nationality in management boards of small and medium-sized enterprises (SMEs) on firm performance from an upper echelons perspective. The authors also examine how board-specific characteristics influence the structural makeup of boards in gender and nationality diversity terms.

The authors focus on the UK because of its individualistic society and flexible labour market and assess 309 SMEs in the manufacturing industry over 2009–2019. A 3-stage least squares (3SLS) estimator is used to analyse the data, the Shannon index to measure board diversity, return on assets as proxy for firm performance, and owner-manager presence, board member age and tenure are the board-specific characteristics of primary interest.

Both gender and nationality diversity contribute to firm performance and represent distinct upper echelon characteristics that change the cognitive and psychological dynamics of boards. Firms with larger boards do not perform better, but diverse boards reduce the narrowing view of CEOs. Yet the presence of owner-managers, despite their performance-enhancing contribution, holds firms back from benefitting from diversity as a strategic choice.

This study extends the upper echelons theory to include board diversity as an important aspect that should become more central in upper echelon thinking when understanding firm performance. The authors’ findings suggest that theoretical developments in search of understanding firm behaviour must proceed by accounting for diversity and not simply focusing on decision-making styles.

While pursuing energy management, firms simultaneously strive to boost sales as a path towards economic performance. Also, the literature suggests that family firms exhibit greater environmental commitment than their non-family counterparts. To examine these contentions, this review espouses contingency theory to interrogate the correlations of (1) energy consumption targets, (2) energy efficiency enhancing measures, (3) energy consumption monitoring and (4) the domestic sales performance of small family firms in Turkey's food sector.

Data were sourced from the World Bank Enterprise Survey. A sample of 137 family firms in food production, processing and retail was analysed using non-linear structural equation modelling. Path coefficients were determined to estimate the extent to which energy management practices predict domestic sales.

The path analysis revealed that although energy consumption targets do not directly increase sales performance, they stimulate firms' energy efficiency enhancement measures and energy consumption monitoring to produce this effect by 21%.

The contingency lens espoused leaves room to capture further antecedents in small family food firms' technical, managerial, ownership, operational and architectural configuration that may also interact with or predict the propensity for energy management.

For practitioners, the inherent findings demonstrate that there are firm-specific material benefits arising from adopting energy management practices. And, although small firms such as family food businesses may have low energy intensities, they can improve their sales performance by setting energy targets, installing energy efficiency enhancing measures and embarking on energy consumption monitoring.

Public stakeholders in Turkey such as the Ministry of Energy and Natural Resources, the General Directorate of Energy Affairs and affiliate institutions can reflect on these findings to develop a coherent national energy management policy for small firms. Such initiatives are especially relevant to Turkey and its ambitions to join the EU which requires member states to set up a national energy efficiency action plan.

This inquiry is one of the first to examine energy management in the food sector at the family firm level through the contingency lens. Theoretically, the results draw attention and shed new light on disparate energy management practices and their discrete yet substantial contribution to sales performance.