Gender Differences in the Structure of Customer Relationships: Evidence from Nigerian New Ventures

Abstract

Informal contracts with customers are an essential but often overlooked aspect of entrepreneurship research. Taking a gender perspective, we investigate the influence of women-managed ventures on the structure of customer relationships. We theorize that due to constraints on their financial networks, women-managed ventures may be impelled to use informal network structures to a great extent than their male-managed counterparts. Specifically, we propose that the proportion of women managers in a new venture is positively associated with the extent of informal customer purchase orders and the extent of customer funded trade credits. We also explore the moderating influence of information technology (IT) and primary customer geographical location on these relationships. Findings from an analysis of 441 Nigerian new ventures drawn from the World Bank Investment Climate Survey provide support for our theory. These results help highlight how women-managed new ventures in emerging markets use informal relationships with customers to mitigate market failures.