Gender, technology and decision-making: insights from an experimental conjoint analysis

Abstract

PurposeThe purpose of this paper is to investigate differences in how men and women small- and medium-sized enterprise (SME) entrepreneurs make decisions regarding whether to invest in technologies for their firms. Answering recent calls for a gendered perspective in entrepreneurial decision-making, this study integrates premises from social identity theory and role congruity theory to help explain innovation investment decisions among male and female SME entrepreneurs.Design/methodology/approachUsing data from 121 SME entrepreneurs in the dry cleaning industry, the authors employ a conjoint experimental methodology to capture decisions SME entrepreneurs make to adopt or reject an environment-friendly dry cleaning technology. The authors examine the role gender, firm revenue, technology price, and technology complexity play in entrepreneur investment decisions.FindingsThe authors find that gender indirectly impacts innovation purchase decisions through interactions with firm revenue and key innovation characteristics. Women SME entrepreneurs were less likely to purchase the technology than their male counterparts at low (and high) firm revenue, high innovation price, and high innovation complexity—all highly risky, masculine, choice contexts.Research limitations/implicationsThese findings suggest that men and women's entrepreneurial investment decisions might be shaped by gender stereotypes. Future research should sample additional industries and determine the norms guiding gendered decision-making.Originality/valueBeyond the decision to launch a new venture, this multi-level analysis, using the lens of social identity and role congruity theories, helps illuminate how men and women SME entrepreneurs approach innovation investment decision-making in significantly different—and gender role consistent—ways.

Barriers for women in the workplace: A social psychological perspective

“…Moreover, entrepreneurial intentions have been linked to higher male gender identification (Gupta et al., 2009), suggesting that people have also internalized these norms and may be motivated to align the self with social expectations for their gender role. And the individual preferences of entrepreneurs, such as their investment decisions, have also been linked to gender stereotypes with women avoiding gender incongruent, risky decisions (Bendell et al., 2020).…”

“…And the individual preferences of entrepreneurs, such as their investment decisions, have also been linked to gender stereotypes with women avoiding gender incongruent, risky decisions (Bendell et al, 2020).…”

Exploring the affect heuristic in Iranian women entrepreneurs

“…Furthermore, the scarcity of robust studies on women entrepreneurs is more apparent concerning various aspects of entrepreneurs' decisions (Nouri, 2020). In other words, although gender influences entrepreneurial decisions as a whole (Bendell et al , 2020) and entrepreneurs are heterogeneous in their reliance on heuristics (Shepherd and Patzelt, 2017), most of the knowledge on entrepreneurial heuristics, generally, and the affect heuristic, specifically, emanates from the studies on male entrepreneurs, resulting in serious research gaps concerning various aspects of women entrepreneurs' decisions (Nouri et al , 2019). Also, while heuristics are context related (Cossette, 2014), most of the available knowledge is based on the studies conducted in the context of developed countries, not developing ones.…”

Decision-making biases in women entrepreneurs: the novices vs the habitual

“…First, although women and men entrepreneurs are heterogeneous regarding various aspects of their decisions, including biases (Shepherd et al. , 2015), and while gender influences entrepreneurs' decisions (Bendell et al. , 2020), almost all the knowledge on entrepreneurs' biases is based on the studies of men entrepreneurs.…”

“…The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/2051-6614.htm entrepreneurs' decisions (Bendell et al, 2020), almost all the knowledge on entrepreneurs' biases is based on the studies of men entrepreneurs. This lack of knowledge pertains to the two aforementioned biases as well.…”