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This cloud has a silver lining: Gender diversity, managerial ability, and firm performance

Guy D. Fernando, Shalini Sarin Jain and Arindam Tripathy

Journal of Business Research, 2020, vol. 117, issue C, 484-496

Abstract: In this study we explore the mediating role of managerial ability in the relationship between gender diversity and firm performance. Drawing on diversity, gender, and upper echelon theories, we propose that the addition of unique female perspectives and leadership styles will afford gender-diverse TMTs a managerial capability advantage over equally talented yet homogeneous male teams; and this link between gender diversity and managerial capability will be more pronounced in times of crisis. Our results confirm our hypotheses. Our key finding is that increasing female representation in TMTs has a substantial and direct influence on overall managerial capabilities and elicits positive performance effects both in times of stability and more so, in times of crisis. Notably, and unique to this study, we show that managerial ability completely (partially) mediates the gender diversity-performance link suggesting that feminine traits and transformational leadership styles are more efficacious in contemporary leadership contexts than generally believed.

Keywords: Gender diversity; Top management teams; Managerial ability; Firm performance; Transformational leadership (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:117:y:2020:i:c:p:484-496

DOI: 10.1016/j.jbusres.2020.05.042

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