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Women in management and sustainable development of SMEs: Do relational environmental management instruments matter?

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  • Johan Graafland

Abstract

Scientific literature on the relationship between gender diversity in management and sustainability of large companies has produced mixed results. Whether and how gender diversity stimulates the sustainable development of small and medium sized enterprises (SMEs) has not yet been researched. We hypothesize that having more women in management positions improves the sustainability of SMEs, because this encourages the use of relational environmental management instruments. Small business literature has shown this type of instrument to be more effective in improving the sustainability of SMEs than bureaucratic management instruments. We test the model on a sample of 3,663 European SMEs and find support for this hypothesis. However, the effect is nonlinear and sustainability reaches its maximum when the proportion of women managers is 54%. The management implication is that SMEs can improve their sustainability by a gender balanced management team.

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  • Johan Graafland, 2020. "Women in management and sustainable development of SMEs: Do relational environmental management instruments matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2320-2328, September.
    • Handle: RePEc:wly:corsem:v:27:y:2020:i:5:p:2320-2328
    DOI: 10.1002/csr.1966
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    3. Francesco Gangi & Lucia Michela Daniele & Nicola Varrone & Francesca Vicentini & Maria Coscia, 2021. "Equity mutual funds' interest in the environmental, social and governance policies of target firms: Does gender diversity in management teams matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 1018-1031, May.
    4. Mariasole Bannò & Emilia Filippi & Sandro Trento, 2023. "Women in top echelon positions and their effects on sustainability: a review, synthesis and future research agenda," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(1), pages 181-251, March.
    5. Isabel‐María García‐Sánchez & Valentina Minutiello & Patrizia Tettamanzi, 2022. "Gender disclosure: The impact of peer behaviour and the firm's equality policies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(2), pages 385-405, March.
    6. Luz Elba Torres-Guevara & Vanessa Prieto-Sandoval & Andres Mejia-Villa, 2021. "Success Drivers for Implementing Circular Economy: A Case Study from the Building Sector in Colombia," Sustainability, MDPI, vol. 13(3), pages 1-17, January.
    7. Francesco Gangi & Lucia Michela Daniele & Eugenio D'Angelo & Nicola Varrone & Maria Coscia, 2023. "The impact of board gender diversity on banks' environmental policy: The moderating role of gender inequality in national culture," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1273-1291, May.
    8. Rosa M. Yagüe-Perales & Pau Pérez-Ledo & Isidre March-Chordà, 2021. "Analysing the Impact of the Glass Ceiling in a Managerial Career: The Case of Spain," Sustainability, MDPI, vol. 13(12), pages 1-18, June.

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