Women Entrepreneurs’ Education Level, Political Skill, and Firm Performance: Political Influence and Human Capital Theories

Abstract

Purpose: Because of the growing interest in the literature in education and political skill as facilitators of firm performance, this article aims to reveal whether there is a moderating role of women entrepreneurs’ political skill on the relationship between their education level and firm performance when firm- and entrepreneur-level characteristics remain under control. Methodology: The study was conducted in Istanbul, Kocaeli, and Bursa, cities with the lowest gender gap in Turkey. The participants of the questionnaires were 291 entrepreneurs who are members of the Women Entrepreneurs Association of Turkey (KAGIDER), the Women Entrepreneur Members of Endeavor Turkey, and the TOBB Women Entrepreneurs. Hierarchical regression analysis was performed to analyze the dataset. Findings: When firm- and the entrepreneur-level characteristics remain under control, women entrepreneurs’ political skill shows a moderator role in the relationship between women entrepreneurs’ education level and firm performance. Practical Implications: A bachelor’s degree or higher, along with political skill, allow women entrepreneurs to increase their firm performance. Furthermore, the higher the political skill, the higher the effect of education level on firm performance. Originality/Value: This is the first study to investigate the moderating role of political skill of women entrepreneurs in the relationship between education level and firm performance. Moreover, political influence and human capital theories are jointly applied to the theoretical model.