Gender diversity in management and firm performance: the influence of growth orientation and organizational culture

Abstract

This study examines the influence of gender diversity in management on firm performance. The management group examined was composed of all firm members considered to be managers and officials, a broader level of analysis than past management-level diversity research that has primarily focused on groups composed of top management team (TMT) members. Adopting contingency and configurational approaches, gender diversity's interactions with two key organizational variables—organizational culture and growth orientation—were evaluated against organizational-level performance measures. Supporting contingency theory and configurational theory, the results suggest that gender diversity's effects at the management level is conditional on, that is, moderated by, the firm's strategic orientation, the organizational culture in which it resides, and/or the multivariate interaction among these variables. These findings help reconcile conflicting results of past diversity–performance research by suggesting that an appropriately configured and supportive organizational environment may need to be in place before the beneficial aspects of gender diversity can be fully realized.