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Women Hold Up Half the Sky? Informal Institutions, Entrepreneurial Decisions, and Gender Gap in Venture Performance

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  • Eric Yanfei Zhao
  • Ling Yang

Abstract

Studies that apply gender role congruity theory (GRCT) have focused on resource providers’ biased evaluations and women entrepreneurs’ internalization of gender stereotypes as primary mechanisms explaining the gender gap in venture performance. We provide an institutional foundation for GRCT and argue that informal political–cultural institutions—namely, government interference in market-based competition and cultural beliefs regarding gender inequality—differentially shape male versus female entrepreneurs’ venture performance through their influences on entrepreneurs’ industry selection and participation in after-work social activities. Our study of 7,626 Chinese entrepreneurial firms provides strong support for our arguments and contributes to women’s entrepreneurship theory and practice.

Suggested Citation

  • Eric Yanfei Zhao & Ling Yang, 2021. "Women Hold Up Half the Sky? Informal Institutions, Entrepreneurial Decisions, and Gender Gap in Venture Performance," Entrepreneurship Theory and Practice, , vol. 45(6), pages 1431-1462, November.
    • Handle: RePEc:sae:entthe:v:45:y:2021:i:6:p:1431-1462
    DOI: 10.1177/1042258720980705
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    References listed on IDEAS

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    3. Geiger, Mark, 2024. "Gender effects and firm financial performance: A SUMAD meta-analysis of social responsibility and family-to-work conflict," Journal of Business Venturing Insights, Elsevier, vol. 22(C).

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