The impact of gender diversity on performance in services and manufacturing organizations

We present three competing predictions of the organizational gender diversity-performance relationship: a positive linear prediction, a negative linear prediction, and an inverted U-shaped curvilinear prediction. The paper also proposes a moderating effect of industry type (services vs. manufacturing). The predictions were tested using archival quantitative data with a longitudinal design. The results show partial support for the positive linear and inverted U-shaped curvilinear predictions as well as for the proposed moderating effect of industry type. The results help reconcile the inconsistent findings of past research. The findings also show that industry context can strengthen or weaken gender diversity effects.

Workforce gender diversity: Is it a source of competitive advantage?

Research on workforce diversity at the organisational level gained momentum in the 1990s, because of the growing trend in HR research to link HR practices with organisational performance. The new parallel wave of research focused on the business case for diversity, in which diversity was linked to organisational performance. However, the results of these studies, mainly focusing on linear diversity-performance relationships, have been inconsistent. Based on contrasting theories, this paper proposes three competing predictions of the gender diversity-performance relationship at the organisational level: a positive linear relationship derived from the resource-based view of the firm, a negative linear relationship derived from self-categorisation and social identity theories, and a U-shaped curvilinear relationship derived from the integration of the resource-based view of the firm with self-categorisation and social identity theories. The U-shaped relationship accounts for the inconsistent findings in past research, because different proportions of men and women produce different social dynamics that have different effects on organisational performance. Further, the proposed U-shaped relationship can have different slopes in the manufacturing and services industries. The paper contributes to the field of diversity by strengthening its weak theoretical foundations and by highlighting the industry differences.