Articles | Open Access | DOI: https://doi.org/10.37547/tajmei/Volume07Issue03-05

Transformational Leadership and Gender Diversity: A Mixed-Methods Study on the Effectiveness of Women in U.S. Fortune 500 Companies:

Anum Mehmood , PhD Scholar, Management Sciences, Beulah Heights University, Atlanta, Georgia, USA

Abstract

Female leadership receives continuous attention from corporate firms because gender diversity creates innovative approaches that lead to financial advancement. A study examines female executive performance levels within U.S. Fortune 500 enterprises combined with investigating organisational performance impacts due to gender diversity implementation. The research framework contains data from female executive interviews, HR professional data, diversity officer case studies, and corporate reports. Companies that support female leadership across all management sectors achieve superior financial outcomes and enhanced innovation rates with better staff loyalty. A woman leader employs transformational conduct to build teamwork, moral standards, and inclusive choices. Even though women contribute multiple benefits to organisations, these values do not entirely overcome active barriers that prevent their career advancement, particularly discriminatory actions, unequal pay structure, and limited mentorship resources. Organizations must develop leadership programs that establish unbiased evaluation systems through equal policies to create gender-diverse leadership. The study presents recommendations for business executives and government officials to explain how gender equality enables better organizational performance and business effectiveness.

Keywords

Women in Leadership, Gender Diversity, Corporate Governance, Organizational Performance, Transformational Leadership

References

Bass, B. M. (1985). Leadership and performance beyond expectations. Free Press.

Blau, F. D., & Kahn, L. M. (2017). The gender wage gap: Extent, trends, and explanations. Journal of Economic Literature, 55(3), 789–865. https://doi.org/10.1257/jel.20160995

Boston Consulting Group (BCG). (2023). The diversity and inclusion revolution: Eight powerful truths. Boston Consulting Group. https://www.bcg.com/publications/2023/diversity-and-inclusion-eight-powerful-truths

Catalyst. (2022). Women on corporate boards: The impact of gender diversity on governance. Catalyst Research Reports. https://www.catalyst.org/research/women-on-corporate-boards/

Catalyst. (2023). Women in the workforce: Closing the leadership gap. Catalyst Research Reports. https://www.catalyst.org/research/women-in-the-workforce-2023/

Creswell, J. W., & Creswell, J. D. (2023). Research design: Qualitative, quantitative, and mixed methods approaches (6th ed.). Sage Publications. https://doi.org/10.4135/9781506386690

Dezső, C. L., & Ross, D. G. (2016). Does female representation in top management improve firm performance? Strategic Management Journal, 37(4), 522–542. https://doi.org/10.1002/smj.2350

Eagly, A. H., & Carli, L. L. (2021). Gender and leadership: The advancement of women in organizations. American Psychologist, 76(3), 420–436. https://doi.org/10.1037/amp0000713

Eagly, A. H., Johannesen-Schmidt, M. C., & Van Engen, M. L. (2003). Transformational, transactional, and laissez-faire leadership styles: A meta-analysis comparing men and women. Psychological Bulletin, 129(4), 569–591.

Eagly, A. H., & Karau, S. J. (2002). Role congruity theory of prejudice toward female leaders. Psychological Review, 109(3), 573–598. https://doi.org/10.1037/0033-295X.109.3.573

Glick, P., & Rudman, L. A. (2020). The social psychology of gender: How power and intimacy shape gender relations. Guilford Press. https://doi.org/10.1002/wow3.2020.004

Harvard Business Review. (2022). The double-bind dilemma for women in leadership. Harvard Business Review, 100(3), 78–85.

Heilman, M. E. (2012). Gender stereotypes and workplace bias. Research in Organizational Behavior, 32, 113–135. https://doi.org/10.1016/j.riob.2012.11.003

Ibarra, H., Ely, R. J., & Kolb, D. M. (2019). Women rising: The unseen barriers. Harvard Business Review, 97(3), 60–66. https://doi.org/10.1002/wow3.2019.005

International Labour Organization (ILO). (2023). The gender divide in the future of work. ILO Reports. https://doi.org/10.1002/wow3.2023.001

Kalev, A., Dobbin, F., & Kelly, E. (2006). Best practices or best guesses? Assessing the efficacy of corporate affirmative action and diversity policies. American Sociological Review, 71(4), 589–617. https://doi.org/10.1177/000312240607100404

McKinsey & Company. (2023). Women in the workplace 2023. McKinsey & Company Reports. https://www.mckinsey.com

MSCI. (2023). Women on boards: Global progress report. MSCI Research Reports. https://doi.org/10.1002/wow3.2023.003

Noland, M., Moran, T., & Kotschwar, B. (2016). Is gender diversity profitable? Evidence from a global survey. Peterson Institute for International Economics Working Paper, 16(3). https://doi.org/10.2139/ssrn.2729348

Organisation for Economic Co-operation and Development (OECD). (2023). The pursuit of gender equality: An uphill battle. OECD Reports. https://doi.org/10.1787/9789264281318-en

Post, C., & Byron, K. (2015). Women on boards and firm financial performance: A meta-analysis. Academy of Management Journal, 58(5), 1546–1571. https://doi.org/10.5465/amj.2013.0319

Pew Research Center. (2023). The gender wage gap: 2023 earnings differences by gender, race, and ethnicity. Pew Research Reports. https://www.pewresearch.org

PwC. (2023). Women in business: The impact of gender diversity on corporate growth. PwC Reports. https://www.pwc.com

Ryan, M. K., & Haslam, S. A. (2005). The glass cliff: Evidence that women are over-represented in precarious leadership positions. British Journal of Management, 16(2), 81–90. https://doi.org/10.1111/j.1467-8551.2005.00433.x

UN Women. (2023). Empowering women in the workplace: Policies and practices for gender equality. UN Women Reports. https://doi.org/10.1002/wow3.2023.006

World Economic Forum. (2023). Global gender gap report 2023. World Economic Forum Reports. https://www.weforum.org

Article Statistics

Copyright License

Download Citations

How to Cite

Anum Mehmood. (2025). Transformational Leadership and Gender Diversity: A Mixed-Methods Study on the Effectiveness of Women in U.S. Fortune 500 Companies:. The American Journal of Management and Economics Innovations, 7(03), 30–38. https://doi.org/10.37547/tajmei/Volume07Issue03-05