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

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  • Fernando, Guy D.
  • Jain, Shalini Sarin
  • Tripathy, Arindam

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.

Suggested Citation

  • Fernando, Guy D. & Jain, Shalini Sarin & Tripathy, Arindam, 2020. "This cloud has a silver lining: Gender diversity, managerial ability, and firm performance," Journal of Business Research, Elsevier, vol. 117(C), pages 484-496.
    • Handle: RePEc:eee:jbrese:v:117:y:2020:i:c:p:484-496
    DOI: 10.1016/j.jbusres.2020.05.042
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