Gender makes the difference: the moderating role of gender on the relationship between management structure and performance in banking

Abstract

Purpose This study aims to explore the factors moderating possibly indirect relationships between gender diversity and its effect on bank performance. The causality of this relationship remains unclear. Design/methodology/approach The sample consists of all banks (n = 27) operating in Serbia. Findings The gender diversity-performance relationship is indirect. The gender diversity of executive boards positively impacts bank performance, over a threshold level. This is observed only in banks where gender diversity is extended to more than one level of executive authority. Research limitations/implications Gender diversity should be fostered, particularly in small and competitive markets. The gender diversity-performance link is based on gender-related social interactions, which are interdependent and should not be taken into account as isolated factors. Originality/value To the knowledge, this is the first study to provide insight into indirect, gender related, moderatory interactions effecting gender diversity – performance link, in banking.