Leader gender and firm investment in innovation

Abstract

Purpose

The purpose of this paper is to examine the influence of business leader gender on the pursuit of innovation opportunities. Extant research suggests that leader gender represents an important characteristic that shapes firm behavior in various ways. The authors build upon this research by relating business leader gender, perceptions of environmental munificence and distributive justice to firm investment in innovation.

Design/methodology/approach

This study examines the survey responses of 469 business leaders in India. These individuals were primarily responsible for their firms. Their responses to survey questions were analyzed using ordinary least squares regression.

Findings

The results of this study suggest that female-led firms exhibit less investment in innovation than male-led firms. Results also suggest that female business leaders perceive less environmental munificence as well as distributive justice. Finally, study results suggest that the effect of gender on firm investment in innovation is mediated by perceptions of distributive justice.

Originality/value

This study provides an empirical link between business leader gender and firm investment in innovation. In doing so, it acknowledges and provides insight into the gendered nature of the initiation of innovation processes and leadership. Finally, the finding that business leader perceptions of distributive justice mediate the relationship between business leader gender and investment in innovation extends current understanding of the mechanisms underlying the lower investment in innovation rates exhibited by female-led firms.

Citation

Reutzel, C.R., Collins, J.D. and Belsito, C.A. (2018), "Leader gender and firm investment in innovation", Gender in Management, Vol. 33 No. 6, pp. 430-450. https://doi.org/10.1108/GM-05-2017-0066