The Intersection of Gender, Operational Barriers, and Diversification Strategies: Evidence from Chinese Female Business Owners

Abstract

This study examines the strategic responses of Chinese female business owners to perceived operational barriers, integrating insights from the Resource-Based View, Signaling Theory, Institutional Theory, and Social Role Theory. Data from the World Bank Enterprise Survey (conducted in China in 2012; the sample comprises 2,700 firms from diverse China’s industries) was analyzed with advanced path modeling techniques. All statistical analyses were conducted using R (version 4.0.2) and SPSS 29. The R packages lavaan and semTools were utilized for implementing Structural Equation Model (SEM) techniques. How female ownership influences diversification strategies was investigated with the mediation effect of business environment barriers and the moderation effect of international certifications. It is revealed that female entrepreneurs are more likely to pursue international diversification due to heightened perceptions of business environment barriers. Perceived regulatory barriers are positively related to product diversification, while perceived business environment barriers are positively related to international diversification. Female business owners perceive operational barriers, particularly business environment challenges, as more significant than their male counterparts, mediating the relationship between female ownership and international diversification. Furthermore, international certifications, while associated with international diversification, attenuate the positive effect of female ownership on international diversification. These insights inform policies aimed at reducing domestic barriers and enhancing access to international markets for female entrepreneurs. Support mechanisms, such as accessible international certifications, can mitigate gender gaps in domestic markets and facilitate global opportunities for female business owners.

Keywords

• entrepreneurship
• female leadership
• gender equality
• inclusive growth
• international diversification
• product diversification