Gender as a Moderator for Firm Resources, Networks and Operation Factors on Firm Performance in Lao MSMES, Laos

Abstract

The objective of the present research is to examine the gender of entrepreneurs as a moderator for the relationships between firm resources, networks and operation factors affecting firm performance in Lao micro, small, and medium sized enterprises (MSMEs). The sample consisted of 1,534 observations. The ordered probit model is adopted because the dependent variable is ordinal numbers. The findings show that the gender of entrepreneurs moderates the relationship between some firm resources (notably, human resources and tangible resources) and firm performance, indicating that even if male and female entrepreneurs have the same levels of these resources, male entrepreneurs outperform female entrepreneurs due to differences in decisions in implementing strategic choices. Furthermore, the gender of entrepreneurs moderates networks (network participation and ICT adoption) on firm performance, meaning that even if male and female entrepreneurs have similar network and ICT availability, male entrepreneurs perform better than female ones. Lastly, gender of entrepreneurs moderates businesses premises on firm performance. In other words, even if male and female entrepreneurs choose the same types of premises for businesses, such as outside premises, male entrepreneurs perform better than female ones. This research provides policy implications for academics, policymakers and implementers, to the effect that gender of entrepreneurs is a key factor in deciding the destiny of firms, in terms of better or worse performance.