Effects of gender diversity in strategic orientation and strategy execution

Abstract

PurposeThis paper aims to analyze the impact of gender in leadership on strategic orientation and the relative impact of these strategic orientations on organizational performance with the leadership of each gender.Design/methodology/approachCross-sectional survey-based data were collected from 1,260 logistics companies, and 503 responses were found suitable for further data evaluation. Structural equation modeling (SEM) and regression analysis were used to analyze the data and test the hypotheses.FindingsResults show that managers' gender affects only the aggressiveness subdimension (p = 0.018 and ß = 0.114) in strategic orientation decisions and that male managers tend to be more aggressive-oriented than female managers. Strategic orientation is more effective on organizational performance. More clearly, when female executives use the same strategic orientation as their male counterparts, organizational performance is higher than that of male executives.Research limitations/implicationsManagers' power is related to social norms about their valuable contribution to the organization and roles are associated with experiences. Thus, at different levels of management, different results will be obtained.Practical implicationsOrganizations should only define leadership roles in masculine terms with information or research that explains how women leaders can contribute to the organization's outcomes.Social implicationsThe lack of fit model should not be expected when determining executive-level female leaders' performance.Originality/valueThere is a significant potential in studying strategic decision-making and whether the ability to provide effective organizational outcomes is related to a person's gender. Even if previous literature suggests that gender stereotypes affect perceptions of men's and women's fit for executive positions, the strategic conception of organizational decisions is immune to gender, but strategy execution is not.