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The Impact of Gender Diversity on the Performance of Business Teams: Evidence from a Field Experiment

Management Science, Vol. 59, No. 7, 2013, pp. 1514-1528

31 Pages Posted: 1 May 2011 Last revised: 4 Nov 2014

Sander Hoogendoorn

University of Amsterdam - Faculty of Economics and Business (FEB); Tinbergen Institute

Hessel Oosterbeek

University of Amsterdam - Research Institute in Economics & Econometrics (RESAM); Tinbergen Institute Amsterdam (TIA); Institute for the Study of Labor (IZA)

Mirjam van Praag

University of Amsterdam - Department of Economics; Copenhagen Business School; Tinbergen Institute; IZA Institute of Labor Economics

Date Written: April 28, 2011

Abstract

This paper reports about a field experiment conducted to estimate the impact of the share of women in business teams on their performance. Teams consisting of undergraduate students in business studies start up a venture as part of their curriculum. We manipulated the gender composition of teams and assigned students, conditional on their gender, randomly to teams. We find that teams with an equal gender mix perform better than male-dominated and female-dominated teams in terms of sales, profits and earnings per share. We explore various mechanisms and find that mutual monitoring is more intense in mixed teams than in homogeneous teams. This partially explains the better results of mixed teams.

Keywords: Gender diversity, team performance, entrepreneurship, field experiment, entrepreneurship education, board effectiveness

JEL Classification: J16, L25, L26, M13, C93

Suggested Citation

Hoogendoorn, Sander and Oosterbeek, Hessel and van Praag, Mirjam, The Impact of Gender Diversity on the Performance of Business Teams: Evidence from a Field Experiment (April 28, 2011). Management Science, Vol. 59, No. 7, 2013, pp. 1514-1528. Available at SSRN: https://ssrn.com/abstract=1826024 or http://dx.doi.org/10.2139/ssrn.1826024

Sander Hoogendoorn (Contact Author)

University of Amsterdam - Faculty of Economics and Business (FEB) ( email )

Roetersstraat 11
Amsterdam, 1018 WB
Netherlands

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Hessel Oosterbeek

University of Amsterdam - Research Institute in Economics & Econometrics (RESAM) ( email )

Roetersstraat 11
Amsterdam
Netherlands
+31 20 525 4242 (Phone)
+31 20 525 5283 (Fax)

HOME PAGE: http://www.fee.uva.nl/scholar/oosterbeek/

Tinbergen Institute Amsterdam (TIA)

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Mirjam Van Praag

University of Amsterdam - Department of Economics ( email )

Roetersstraat 11
Amsterdam, 1018 WB
Netherlands
+31 20 525 4096 (Phone)
+31 20 525 4182 (Fax)

Copenhagen Business School ( email )

Kilevej 14A
Frederiksberg, 2000
Denmark

Tinbergen Institute

Gustav Mahlerlaan
Amsterdam
Netherlands

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

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