Transformational leadership and performance in social economy entities: The moderating effect of board gender diversity

Given that social economy entities (SEEs) are founded on specific values, including democracy, equality, equity and solidarity, it is reasonable to assume that their operations and performance will be impacted by the absence of discrimination and the equal representation of women in management and decision-making positions. In these organizations, transformational leadership plays a critical role by emphasizing group interests and members' personal and professional growth, which can impact organizational performance. This study examines how transformational leadership positively impacts organizational performance (rational goals, internal processes, open systems and human relations), considering the moderating effect of board gender diversity. The results of the empirical study carried out with data obtained from 174 Spanish SEEs (worker cooperatives and labour societies) confirm that transformational leadership positively impacts organizational performance, and this impact is favoured by a balanced proportion of women and men in decision-making bodies. Having more women on the board of directors improves the effect of transformational leadership on performance when the level of this type of leadership is low; however, the effect of more women on the board is less positive when transformational leadership is high, making board gender balance advisable.