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Investigating the drivers that contribute to the success of small and medium-sized enterprises (SMEs) is crucial for ensuring the overall growth and sustainability of a country. The purpose of this research is to investigate the role of gender diversity on the Board of Directors of innovative SMEs to understand whether the presence of women on boards can improve the performance of such organizations devoted to introducing technological advancements in the product market.

The study adopts a quantitative approach, using a sample of 2,264 Italian innovative SMEs. These companies were selected from non-financial sectors and collected from Analisi informatizzata delle Aziende Italiane (AIDA), a database provided by Bureau van Dijk. An unbalanced panel data involving a period from 2016 to 2021 was used with a total of 12,173 observations.

Our findings suggest that female representation has a negative effect on a company's financial performance. Moreover, the moderation effect of sector growth opportunities confirms this negative influence since in sectors characterized by high growth opportunities, the presence of women on boards was found to have a negative outcome.

The main contribution of the work lies in offering a comprehensive and thorough examination of the business category of innovative SMEs. Specifically, it extends previous research through a focus on board gender diversity of innovative SMEs by examining the impact of the presence of women in their boardrooms on firm performance outcomes. Furthermore, it provides an analysis of this effect, considering both high-growth and low-growth sectors.