Comparisons between women- and men-led firms often assume they operate under similar conditions and constraints – a flawed assumption. This blog summarizes findings from a meta-frontier analysis that separates environmental constraints (factors outside a manager’s control) from managerial factors to understand gender gaps in firm performance better. Based on a representative sample of 225 registered hotels in India, the study finds that differences in productivity are entirely due to environmental factors, not managerial ability. The researchers argue that achieving gender parity requires targeted policies to improve the working environment for women managers – such as better access to finance, supportive infrastructure, family support programs, and stronger professional networks
Blog » The Productivity of Women- and Men-led Enterprises: In Search of a Fair Comparison (2025)
The Productivity of Women- and Men-led Enterprises: In Search of a Fair Comparison (2025)
Comparisons between women- and men-led firms often assume they operate under similar conditions and constraints – a flawed assumption. This blog summarizes findings from a meta-frontier analysis that separates environmental constraints (factors outside a manager’s control) from managerial factors to understand gender gaps in firm performance better. Based on a representative sample of 225 registered hotels in India, the study finds that differences in productivity are entirely due to environmental factors, not managerial ability. The researchers argue that achieving gender parity requires targeted policies to improve the working environment for women managers – such as better access to finance, supportive infrastructure, family support programs, and stronger professional networks