THE ROLE OF FEMALE LEADERSHIP IN BUSINESS INNOVATIONS

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Date

2025

Authors

Volynets, Maryna

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Abstract

This research explores the role of female leadership in driving business innovation, addressing the critical question of how gender diversity in leadership impacts organizational creativity and innovation outcomes. Using firm-level data from the EBRD-EIB-WBG Enterprise Surveys conducted between 2018 and 2020, the study investigates the influence of female representation in top management and ownership on innovation metrics, including product and process innovations. The analysis consists of descriptive statistics, correlation analysis, and regression modeling to assess the relationships between female leadership and innovation outcomes, uncovering a critical threshold of at least 10% female representation in leadership roles. The results reveal that firms meeting or exceeding this threshold exhibit significantly higher rates of innovation, with product innovation increasing by 11.55% and process innovation by 8.45% compared to firms below the threshold. Moreover, the findings highlight the complementary role of majority women ownership in fostering innovation. Strong correlations between female leadership metrics and innovation outcomes underscore the importance of gender diversity in driving organizational performance. The study aligns with prior research, refining the understanding of critical mass in leadership diversity and its impact on innovation. Implications include the need for organizations to implement policies that elevate women into leadership positions and promote diversity as a strategic advantage. Future research could explore the effects of surpassing higher thresholds and examine industry-specific or regional variations. By demonstrating that even modest levels of female leadership can significantly enhance innovation, this study provides actionable insights for businesses and policymakers whose goal is developing inclusive and innovative organizational cultures.

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Management, female leaders, process innovation, product innovation, diversity

Citation

Volynets, Maryna. (2025). THE ROLE OF FEMALE LEADERSHIP IN BUSINESS INNOVATIONS. Kyiv: American University Kyiv.