Learning to be entrepreneurial: Do family firms gain more from female leadership than nonfamily firms?

Abstract

Research SummaryWe integrate social learning theory with gender role congruity theory to propose that family firms gain more from female leadership than nonfamily firms due to the congruence of female communal values with those of a family business. Results of our empirical study, based on a sample of 322 Spanish small‐ and medium‐sized enterprises (SMEs), show that while all three dimensions of learning orientation (commitment to learning, shared vision, and open‐mindedness) are positively related to an entrepreneurial orientation, significant differences exist based on the CEO's gender and whether the SME is a family or nonfamily firm. Strongest differences were found between female‐led family and nonfamily SMEs whereby the entrepreneurial orientation of female‐led family SMEs benefited significantly more from their firm's commitment to learning and open‐mindedness.Managerial SummaryTo cultivate entrepreneurship, a small‐ and medium‐sized enterprise (SME) leader must create an organization that fosters learning. Yet, surprisingly, we know little about male and female leaders' ability to translate their SME's learning into entrepreneurship. Our study reveals that in comparison to nonfamily firms, family firms offer an environment that is more conducive to supporting women leaders, which allows their female leaders to direct their SME's learning more effectively toward entrepreneurship. However, while female‐led family SMEs were as effective as male‐led family‐ and nonfamily‐led SMEs in directing learning toward entrepreneurship, female‐led nonfamily SMEs struggled. Our study therefore suggests that while women have an advantage leading family SMEs, gender biases hamper female leaders' ability to transform learning into greater entrepreneurial orientation in nonfamily SMEs.

Family firm entrepreneurship and sustainability initiatives: Women as corporate change agents

“…These topics were explored through the lenses of gender role (Eagly, 1987) and upper echelons theory (Hambrick & Mason, 1984), concentrating on female CEOs' moderating effect on the complex relationships driving family businesses' engagement in sustainability initiatives. This approach stressed women's specific leadership traits and their unique management styles within organisations, which can be especially emphasised in family firm contexts (Hernández-Linares, et al, 2023). The present study thus also responded to Gundry et al's (2014) call for further empirical research on women in family businesses that goes beyond these actors' part in succession (Martinez Jimenez, 2009;Xian et al, 2021) and performance differences between family businesses led by women versus men (Rachmawati et al, 2022).…”

“…For example, employees may come up with new ways to address social and environmental challenges, and, as active listening is considered characteristic of women, female CEOs will be more open to discussing these ideas than a male counterpart would. Family businesses can thus offer a more comfortable setting for female leaders who seek to deploy their personal skills and resources (Hernández-Linares, et al, 2023).…”