Factors mediating gender and firm performance in Lao micro, small, and medium sized enterprises

Abstract

This study investigated firm resources, networks, and operation factors that mediate the relationship between the gender of entrepreneurs and firm performance in Lao micro, small, and medium sized enterprises (MSMEs). The sample consisted of 1,534 companies, made up of 896 male-headed firms and 638 female-headed firms, with 1 to 99 employees. By the use of ordered probit, binary logistic, and multiple linear regression models, the study examined whether male-headed firms outperformed those led by females through consideration of firm resources, networks, and operation factors. The findings showed that some firm resources and networks mediate the relationship between gender and firm performance and that male-headed firms outperformed female-headed ones. However, operation factors did not show any impact on the performance of male- and female-headed firms and there was no evidence of superior performance. This paper suggests policy implications for both policy implementers and policymakers that firm resources (human and tangible resources) and networks (network participation and Information Communication Technology adoption) should be emphasized because of their contribution to firm success. The paper also recommends the reduction and/or elimination of the gap between firms operated by male and female entrepreneurs.