Do Female Managers Affect Productivity? Evidence from Zimbabwean Manufacturing Firms

Abstract

Using a large dataset of Zimbabwean manufacturing firms extracted from the two waves of World Bank Enterprise Surveys of 2011 and 2016, the study investigates the impact of female management on firm's productivity in Zimbabwe's manufacturing firms. The study estimates a modified production function, to incorporate gender dimension, using a random effects estimation model. The results show that the effect of having a female manager on firm productivity varies by geographical location in the case of Zimbabwe. Specifically, the productivity of firms which have a female top manager, and are located in Harare, experience a negative productivity differential as they significantly reduce their productivity gap by 9.9 percent. On the other hand, the study found that having a female top manager in manufacturing firms located in Bulawayo significantly increases productivity by 7.9 percent compared to firms located in the Midlands area. We also find that the effect of a female manager on firm productivity differs by sectors, stressing the need for domestic economic policy to consider these dynamics. Given the importance of location in determining the contribution of a production manager on firm performance, the government may need to implement policies that consider location-specific factors to enhance productivity of the manufacturing sector of Zimbabwe.

Determinants of labor productivity among SMEs and large‐sized private service firms in Kenya

“…The same study finds political instability as a factor that significantly reduced firm‐level labor productivity. According to Makochekanwa and Nchake (2019), geographical location proves pivotal in determining the contribution of a female manager to firm productivity.…”

“…The same study finds political instability as a factor that significantly reduced firm-level labor productivity. According to Makochekanwa and Nchake (2019), geographical location proves pivotal in determining the contribution of a female manager to firm productivity. There exists a consensus in the developed world that innovation enhances labor productivity (as documented in the works of Adegboye and Iweriebor, 2018;Griffin, Huego, Mairesse, & Peters, 2006;Organization for Economic Cooperation and Development, 2009).…”

Strategies for Breaking the Glass Ceiling: The Study of Scale Development

“…Although some studies (Nakagawa and Schreiber, 2014;Makochekanwa and Nchake, 2019;Bektur and Arzova, 2020;Graafland, 2020;Burkhardt et al, 2020) prove that a higher proportion of women in management in the private sector has a positive impact on firms' performance, such as increasing stock market returns, generating higher corporate profitability, and environmental performance, the proportion of women in managerial positions remains low in both the public and private sectors. Globally, women held only 28 percent of executive positions in 2019, and this proportion has not changed from 2019 to 2020 (The Sustainable Development Goals Report, 2022).…”

“…Thanks to these skills, they can reveal critical thinking and creativity in harmony with the firm's strategic roadmap. They can enhance workers' productivity and the firm's outputs by minimizing gender differences between managers and subordinates via policies detailed (Makochekanwa and Nchake, 2019). Despite these contributions to firms, it is considerably hard for them to reach senior managerial levels due to the glass ceiling, which is defined (Webster et al, 2011) as an invisible barrier to the advancement of women in the workplace regardless of their qualifications.…”

“…Although it is tried to provide equality between women and men such as in the field of employment, leadership, and decision-making at all levels for sustainable development in many countries, no country has achieved gender equality for women yet. Whereas some studies (Nakagawa and Schreiber, 2014;Makochekanwa and Nchake, 2019;Bektur and Arzova, 2020;Graafland, 2020;Burkhardt et al, 2020) prove that a higher proportion of women in management in the private sector has a positive impact on firms' performance, such as increasing stock market returns, generating higher corporate profitability, and environmental performance. Therefore, it is important to provide women breaking the glass ceiling.…”