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Women on Top Management Teams and Firm Performance in German Medium-Sized Enterprises: The Moderating Role of Recruiting Source

Author

Listed:
  • Kristina Reineke

    (University of Paderborn)

  • Holger Steinmetz

    (Leibniz Institute for Psychology Information)

  • Rodrigo Isidor

    (University of Bayreuth)

  • Rüdiger Kabst

    (University of Paderborn)

Abstract

Despite substantial research, evidence regarding the relationship between the proportion of women on top management teams (TMTs) and firm performance is still inconclusive. Building on upper echelons theory, this paper expands the discussion of potential moderating effects in this regard by applying a complementary perspective to the commonly studied organization-oriented factors. Applying a person-oriented perspective to the composition of TMTs, this study argues that the recruiting source of TMT members - whether members were recruited from the owner's family, from the internal job market or the external job market - leads to differences in the job-relevant characteristics of TMT members. Consequently, the recruiting source should moderate the relationship between TMT gender composition and performance. Our analysis of 1025 German medium-sized enterprises (MEs) shows that there is no main effect of the proportion of women on firm performance. However, recruiting from the owner's family and the internal labor market have a significant negative moderating influence on the relationship between the proportion of women on TMTs and firm performance. Conversely, hiring externally exerts a significant positive effect.

Suggested Citation

  • Kristina Reineke & Holger Steinmetz & Rodrigo Isidor & Rüdiger Kabst, 2020. "Women on Top Management Teams and Firm Performance in German Medium-Sized Enterprises: The Moderating Role of Recruiting Source," Working Papers Dissertations 60, Paderborn University, Faculty of Business Administration and Economics.
    • Handle: RePEc:pdn:dispap:60
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    References listed on IDEAS

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    More about this item

    Keywords

    top management team; gender; proportion of women; performance; person-oriented moderators; recruiting;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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