IDEAS home Printed from https://ideas.repec.org/a/bla/annpce/v96y2025i4p793-819.html

Transformational leadership and performance in social economy entities: The moderating effect of board gender diversity

Author

Listed:
  • Inocencia Mª Martínez‐León
  • Isabel Olmedo‐Cifuentes
  • Jorge Luis Sánchez‐Navarro
  • Narciso Arcas‐Lario

Abstract

Given that social economy entities (SEEs) are founded on specific values, including democracy, equality, equity and solidarity, it is reasonable to assume that their operations and performance will be impacted by the absence of discrimination and the equal representation of women in management and decision‐making positions. In these organizations, transformational leadership plays a critical role by emphasizing group interests and members’ personal and professional growth, which can impact organizational performance. This study examines how transformational leadership positively impacts organizational performance (rational goals, internal processes, open systems and human relations), considering the moderating effect of board gender diversity. The results of the empirical study carried out with data obtained from 174 Spanish SEEs (worker cooperatives and labour societies) confirm that transformational leadership positively impacts organizational performance, and this impact is favoured by a balanced proportion of women and men in decision‐making bodies. Having more women on the board of directors improves the effect of transformational leadership on performance when the level of this type of leadership is low; however, the effect of more women on the board is less positive when transformational leadership is high, making board gender balance advisable.

Suggested Citation

  • Inocencia Mª Martínez‐León & Isabel Olmedo‐Cifuentes & Jorge Luis Sánchez‐Navarro & Narciso Arcas‐Lario, 2025. "Transformational leadership and performance in social economy entities: The moderating effect of board gender diversity," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 96(4), pages 793-819, December.
    • Handle: RePEc:bla:annpce:v:96:y:2025:i:4:p:793-819
    DOI: 10.1111/apce.70008
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/apce.70008
    Download Restriction: no
    File URL: https://libkey.io/10.1111/apce.70008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chenhall, Robert H. & Langfield-Smith, Kim, 2007. "Multiple Perspectives of Performance Measures," European Management Journal, Elsevier, vol. 25(4), pages 266-282, August.
    2. Morf, Manuela & Bakker, Arnold B., 2024. "Ups and downs in transformational leadership: A weekly diary study," European Management Journal, Elsevier, vol. 42(2), pages 200-210.
    3. Brandão, Janaína Balk & Breitenbach, Raquel, 2019. "What are the main problems in the management of rural cooperatives in Southern Brazil?," Land Use Policy, Elsevier, vol. 85(C), pages 121-129.
    4. Adams, Renée B. & Ferreira, Daniel, 2009. "Women in the boardroom and their impact on governance and performance," Journal of Financial Economics, Elsevier, vol. 94(2), pages 291-309, November.
    5. Walid Cheffi & Ahmed Abdel-Maksoud & Muhammad Omer Farooq, 2021. "CSR initiatives, organizational performance and the mediating role of integrating CSR into management control systems: Testing an inclusive model within SMEs in an emerging economy," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(3), pages 333-367, September.
    6. Chris Bart & Gregory McQueen, 2013. "Why women make better directors," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 8(1), pages 93-99.
    7. Faiza Manzoor & Longbao Wei & Mohammad Nurunnabi & Qazi Abdul Subhan & Syed Irshad Ali Shah & Samaher Fallatah, 2019. "The Impact of Transformational Leadership on Job Performance and CSR as Mediator in SMEs," Sustainability, MDPI, vol. 11(2), pages 1-14, January.
    8. Robert E. Quinn & John Rohrbaugh, 1983. "A Spatial Model of Effectiveness Criteria: Towards a Competing Values Approach to Organizational Analysis," Management Science, INFORMS, vol. 29(3), pages 363-377, March.
    9. Roger Spear & Chris Cornforth & Mike Aiken, 2009. "The Governance Challenges Of Social Enterprises: Evidence From A Uk Empirical Study," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 80(2), pages 247-273, June.
    10. Périlleux, Anaïs & Szafarz, Ariane, 2015. "Women Leaders and Social Performance: Evidence from Financial Cooperatives in Senegal," World Development, Elsevier, vol. 74(C), pages 437-452.
    11. Jessica M. Rixom & Mark Jackson & Brett A. Rixom, 2023. "Mandating Diversity on the Board of Directors: Do Investors Feel That Gender Quotas Result in Tokenism or Added Value for Firms?," Journal of Business Ethics, Springer, vol. 182(3), pages 679-697, January.
    12. Elena Meliá-Martí & Guillermina Tormo-Carbó & Juan Francisco Juliá-Igual, 2020. "Does Gender Diversity Affect Performance in Agri-Food Cooperatives? A Moderated Model," Sustainability, MDPI, vol. 12(16), pages 1-27, August.
    13. Fernando, Guy D. & Jain, Shalini Sarin & Tripathy, Arindam, 2020. "This cloud has a silver lining: Gender diversity, managerial ability, and firm performance," Journal of Business Research, Elsevier, vol. 117(C), pages 484-496.
    14. ABM Fazle Rahi, 2025. "Unpacking women’s power on corporate boards: gender reward in board composition," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 22(1), pages 64-80, March.
    15. Carmen María Hernández‐Nicolás & Juan Francisco Martín‐Ugedo & Antonio Mínguez‐Vera, 2019. "The effect of gender diversity on the board of Spanish agricultural cooperatives on returns and debt: An empirical analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 35(4), pages 639-656, October.
    16. Chris Cornforth, 2004. "The Governance of cooperatives and mutual associations: a paradox perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 75(1), pages 11-32, March.
    17. Sana Triki Damak, 2018. "Gender diverse board and earnings management: evidence from French listed companies," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 9(3), pages 289-312, May.
    18. Jiri Hejkrlik & Petra Chaloupkova & Tetyana Sokolska, 2023. "The role of transformational leadership and leaders’ skills for new agricultural cooperatives in post‐soviet countries," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(1), pages 109-129, March.
    19. Wu, Qiang & Dbouk, Wassim & Hasan, Iftekhar & Kobeissi, Nada & Zheng, Li, 2021. "Does gender affect innovation? Evidence from female chief technology officers," Research Policy, Elsevier, vol. 50(9).
    20. Anju Verma & Kiran Bala, 2022. "Transformational Leadership and Organizational Citizenship Behaviour of Cross-functional Team Members: Empirical Assessment of Moderating and Mediating Effects," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 47(4), pages 502-524, November.
    21. Akshita Arora, 2022. "Gender diversity in boardroom and its impact on firm performance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(3), pages 735-755, September.
    22. Masood Ul Hassan & Zeeshan Iqbal & Ubaidullah Shafique & Nayab Bukhari, 2019. "Transformational leadership and team performance: an empirical study of the hotel industry of Pakistan," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 18(2), pages 151-173.
    23. Faleye, Olubunmi & Hoitash, Rani & Hoitash, Udi, 2011. "The costs of intense board monitoring," Journal of Financial Economics, Elsevier, vol. 101(1), pages 160-181, July.
    24. Sana Triki Damak, 2018. "Gender diverse board and earnings management: evidence from French listed companies," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 9(3), pages 289-312, May.
    25. Nuria Reguera-Alvarado & Pilar Fuentes & Joaquina Laffarga, 2017. "Does Board Gender Diversity Influence Financial Performance? Evidence from Spain," Journal of Business Ethics, Springer, vol. 141(2), pages 337-350, March.
    26. Saeid Karimi & Farzaneh Ahmadi Malek & Ahmad Yaghoubi Farani & Genovaitė Liobikienė, 2023. "The Role of Transformational Leadership in Developing Innovative Work Behaviors: The Mediating Role of Employees’ Psychological Capital," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    27. Seokwon Chang & Mugoan Jeong, 2021. "Does Leadership Matter in Performance of Social Enterprises in South Korea?," Sustainability, MDPI, vol. 13(20), pages 1-19, October.
    28. Izaskun AGIRRE & Pedro REINARES & Amaia AGIRRE, 2014. "Antecedents To Market Orientation In The Worker Cooperative Organization: The Mondragon Group," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(3), pages 387-408, September.
    29. Hendrik Gomar Sinaga & Moch. Asmawi & R. Madhakomala & Adji Suratman, 2018. "Effect of Change in Management, Organizational Culture and Transformational Leadership on Employee Performance PT. AdhyaTirta Batam (PT. ATB)," International Review of Management and Marketing, Econjournals, vol. 8(6), pages 15-23.
    30. Mugoan Jeong, 2024. "The Relationship between Leadership and Performance in Enhancing the Sustainability of Social Enterprises," Sustainability, MDPI, vol. 16(8), pages 1-13, April.
    31. Taha Almarayeh, 2021. "Board gender diversity, board compensation and firm performance. Evidence from Jordan," Journal of Financial Reporting and Accounting, Emerald Group Publishing Limited, vol. 21(3), pages 673-694, December.
    32. Sprenger, Carsten & Lazareva, Olga, 2022. "Corporate governance and investment-cash flow sensitivity: Evidence from Russian unlisted firms," Journal of Comparative Economics, Elsevier, vol. 50(1), pages 71-100.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mushtaq Hussain Khan & Inam Ul Haq & Muhammad Umer Azeem & Abdul Ghafoor, 2025. "Climate Change Initiatives, Environmental Management Training, and Firm Performance: The Trickle‐Down Effect of Board‐Level Gender Diversity on Gender Diversity in the top Management Team," Business Strategy and the Environment, Wiley Blackwell, vol. 34(7), pages 9274-9300, November.
    2. Anaïs Périlleux & Ariane Szafarz, 2022. "Women in the boardroom: a bottom–up approach to the trickle-down effect," Small Business Economics, Springer, vol. 58(4), pages 1783-1800, April.
    3. Chi Duong Thi, 2025. "Earnings Management and Firm Performance Around Listing Events: The Moderating Role of Gender," SAGE Open, , vol. 15(2), pages 21582440251, May.
    4. Baghdadi, Ghasan A. & Safiullah, Md & Heyden, Mariano L.M., 2023. "Do gender diverse boards enhance managerial ability?," Journal of Corporate Finance, Elsevier, vol. 79(C).
    5. Franziska Handschumacher & Willi Ceschinski, 2020. "Besteht ein Zusammenhang zwischen der Gender-Diversity und Überwachungseffektivität des Aufsichtsrats? Eine empirische Analyse deutscher börsennotierter Unternehmen [Is There a Link Between Gender Diversity and Supervisory Board’s Monitoring Effec," Schmalenbach Journal of Business Research, Springer, vol. 72(2), pages 213-251, June.
    6. Moez Bennouri & Anastasia Cozarenco & Samuel Anokye Nyarko, 2024. "Women on Boards and Performance Trade-offs in Social Enterprises: Insights from Microfinance," Journal of Business Ethics, Springer, vol. 190(1), pages 165-198, February.
    7. Katarina Gomoryova, 2024. "Female Leadership and Financial Performance: A Meta-Analysis," Working Papers IES 2024/6, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jan 2024.
    8. I-Ju Chen & Wei Chih Lin & Huai-Chun Lo & Sheng-Syan Chen, 2023. "Board diversity and corporate innovation," Review of Quantitative Finance and Accounting, Springer, vol. 61(1), pages 63-123, July.
    9. Xiang Luo & Jianan Zhou, 2025. "Unveiling Her Efforts: Gender Diversity’s Impact on Performance Commitments in M&As," Journal of Business Ethics, Springer, vol. 200(1), pages 55-90, August.
    10. Belaounia, Samia & Tao, Ran & Zhao, Hong, 2020. "Gender equality's impact on female directors’ efficacy: A multi-country study," International Business Review, Elsevier, vol. 29(5).
    11. Đặng, Rey & Houanti, L’Hocine & Reddy, Krishna & Simioni, Michel, 2020. "Does board gender diversity influence firm profitability? A control function approach," Economic Modelling, Elsevier, vol. 90(C), pages 168-181.
    12. Aiyang Yin & Yun Shen & Liang Han, 2026. "Is the capital market walking the walk on board gender diversity? Evidence from stock price crash risk," Review of Quantitative Finance and Accounting, Springer, vol. 66(3), pages 1215-1252, April.
    13. Saeed, Abubakr & Baloch, Muhammad Saad & Liedong, Tahiru Azaaviele & Rajwani, Tazeeb, 2024. "Board gender diversity, nonmarket strategy and firm performance: Evidence from emerging markets MNCs," Research in International Business and Finance, Elsevier, vol. 71(C).
    14. Dhouha Bouaziz, 2025. "Does External Audit Quality Moderate the Relationship Between CEO Entrenchment and Financial Communication Quality? Evidence from French Companies," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 15(3), pages 101-129.
    15. Jamaani, Fouad, 2025. "Can female directors affect IPO withdrawal risk?," Business Horizons, Elsevier, vol. 68(3), pages 361-383.
    16. Faella, Francesca & Scheins, Christopher & Schwarz, Claudia & van Breemen, Vivian M., 2025. "The importance of the SSM’s fitness and propriety work for banks’ performance – evidence from 10 years of SSM work," Working Paper Series 3115, European Central Bank.
    17. El Mokdad Ghaithaa & Awdeh Ali, 2025. "Corporate Governance, Bank Stability and Risk-Taking: Differences Between Conventional and Islamic Banks," Review of Middle East Economics and Finance, De Gruyter, vol. 21(1), pages 1-41.
    18. Rebérioux, Antoine & Roudaut, Gwenael, 2016. "Gender Quota inside the Boardroom: Female Directors as New Key Players?," CEPREMAP Working Papers (Docweb) 1603, CEPREMAP.
    19. Filip Hampl & Dagmar Vágnerová Linnertová, 2025. "How the interaction between board gender diversity and ESG shapes dividend policy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(2), pages 2472-2490, March.
    20. Imanol Basterretxea & Eneka Albizu, 2011. "Management training as a source of perceived competitive advantage: The Mondragon Cooperative Group case," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 32(2), pages 199-222, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:annpce:v:96:y:2025:i:4:p:793-819. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1370-4788 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.