Her presence matters – female owners and firm innovation in India

Shreya Biswas

Journal of Economic Studies, 2025, vol. 52, issue 8, 1415-1431

Abstract: PurposeThe study examines the relationship between having a female owner and firm innovation in India.Design/methodology/approachThe paper employs a linear probability model as well as probit specification to assess the empirical relationship between female ownership and innovation. To ensure that the results are not driven by endogeneity related to the female owner variable, the paper also uses a propensity score matching method and instrumental variable approach.FindingsThe study finds that having a female owner increases firm’s likelihood of innovation in India. We use three measures of innovation given by product innovation, process innovation and engagement in R&D. The positive relationship between a female owner and innovation is driven by the set of more gender equal states. We find that the relationship is weaker for older firms and firms facing financing constraints. Further, we find that firms having female owners are more likely to conduct a formal training of their employees. This can possibly be one of the channels through which female owners improve firm innovation.Originality/valueThis study highlights the need to promote female ownership as a potential channel for promoting firm innovation in emerging economies like India. It also emphasizes the fact that female owners tend to train their employees, which is the channel through which it enhances firm innovation. The findings also highlight that regional gender equality is necessary for female owners to influence firm innovation.

Keywords: Innovation; Female owner; Firms; India (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jespps:jes-04-2024-0237

DOI: 10.1108/JES-04-2024-0237

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