When Employee Gender Diversity Benefits Collective Performance: The Importance of the Proportion of Women in Top Management Teams

Grounded in symbolic and substantive frameworks, our study highlights how the proportion of women in top management teams (TMTs) enhances coordination among members of gender-diverse groups, leading to a higher collective performance. Our empirical investigation encompasses panel data (Study 1: 1017 observations across 306 firms over 8 years) and two group-level surveys (Study 2: 93 leaders and 391 members; Study 3: 47 leaders and 149 members), all within the context of South Korea. Consistently across our studies, we find that the indirect relationship between employee gender diversity and collective performance through relational coordination is positive and stronger as the proportion of women in the TMT increases. Notably, Study 3 reveals that it is TMTs’ substantive influence (e.g., diversity-supportive practices and initiatives), rather than their symbolic influence (e.g., signaling equal opportunity for career advancement), that underpin the observed benefits of the proportion of women in TMTs. Our research highlights the pressing importance of advancing the proportion of women in top leadership positions.