Store leader gender and store sales performance: When and why do women and men underperform?

Abstract

AbstractFinding ways of breaking the gender‐based glass ceiling is an important human resource issue in companies today. Employing a sample of over 200 retail stores, we explore multiple moderating and mediating factors to explain when and why women store leaders perform better, equal to, or worse than men. Results reveal that (a) women are assigned to lead stores that are positioned closer to competitive rivals than men and (b) women receive unfair distributive pay outcomes in that they are generally paid less than their male counterparts. When accounting for these factors, performance (i.e., productivity) differences between stores with men and women leaders diminished. Further, organizational tenure and store‐unit size (i.e., number of employees) were positively associated with sales performance among stores with women leaders. The findings unveil why some store‐units led by women underperform but also offer contingency factors that delineate when women‐led and men‐led stores excel in sales productivity. Implications for recruiting and retaining both women and men in leadership are considered.