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Female mentors guide businesswomen to greater success – study

The study revealed a clear advantage for the women with female mentors who learned to build better customer relationships. For example, the businesswomen began to follow up post-purchase to ask about their customers’ experience and what could be improved.

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There are millions of entrepreneurs in developing countries. In fact, in emerging markets, more than half of all workers — both men and women — are small-firm owners. Many of them, unfortunately, are unable to earn a decent livelihood. And for the women, a persistent gender gap makes success even trickier.

In an effort to help improve business outcomes, governments and nonprofits each year invest billions of dollars in training programs, many of which provide mentors for the entrepreneurs. Unfortunately, female entrepreneurs frequently benefit less — or don’t benefit at all — from these programs.

A new study from the University of Notre Dame, Texas A&M, University of Chicago and London School of Economics recommends a simple adjustment to the current training system to give women a better shot at success. It looked into whether the gender of the mentors plays a role and found that for the men it does not, but pairing female mentors with female entrepreneurs, or gender matching, did make a significant difference.

Breaking the Glass Ceiling: Empowering Female Entrepreneurs through Female Mentors” is forthcoming in Marketing Science from lead author Frank Germann, the department chair and Viola D. Hank Associate Professor of Marketing at Notre Dame’s Mendoza College of Business. Co-authors of the study are Stephen Anderson from Texas A&M, Pradeep Chintagunta from the University of Chicago and Naufel Vilcassim from the London School of Economics. The team collaborated with Grow Movement, a nonprofit based in London.

The study’s findings are based on a field experiment the team conducted in Kampala, Uganda, with 930 entrepreneurs, 40 percent of whom were women. The entrepreneurs were randomly matched with a female mentor, a male mentor or no mentor. Recruited by Grow Movement and based all over the world, the mentors worked for several months remotely with the entrepreneurs through videoconferencing, phone calls, texts and shared documents.

Almost all female entrepreneurs in the study worked full-time operating their businesses 6.5 days a week. Most sold directly to Ugandan consumers through retail and services and had one paid employee, on average. The businesses were about four years old, and the majority of the women were young, married mothers in their 20s with at least a high school education.

Two years later, the researchers did a follow-up survey. They learned that businesswomen in emerging markets benefit significantly more from having a female as opposed to a male mentor.

Why?

The female mentors proved to be more positive and social in their interactions with the female entrepreneurs — suggesting they were more engaged. The study revealed a clear advantage for the women with female mentors who learned to build better customer relationships. For example, the businesswomen began to follow up post-purchase to ask about their customers’ experience and what could be improved.

“This really helped improve their firms’ performance,” Germann said. “Our findings show that firm sales and profits of female entrepreneurs guided by female mentors increased by, on average, 32 percent and 31 percent compared with the control group. And these estimates are even greater for high-aspiring female entrepreneurs.”

In contrast, compared with the control group, female entrepreneurs who were mentored by men did not significantly improve their sales and profits over the course of the study.

The study results point to a fairly simple, yet powerful, new policy tool.

“We have already shared our findings with several organizations, including some of our contacts at the World Bank who frequently design business support interventions delivered in emerging markets, many of which involve some kind of mentor,” Germann said. “We hope that female emerging market entrepreneurs will get paired with female mentors in the future, which, based on our findings, should help to break the glass ceiling and improve business outcomes.”

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Office owners or managers, take note: Increased risk of bullying in open-plan offices

In traditional open-plan offices it is easier to notice colleagues’ shortcomings and become irritated by them. If someone gets frustrated and takes it upon themselves to “do something about” a colleague’s behaviour, and there are no clear guidelines for handling such situations, there is a risk that it may escalate into bullying. Those who are subjected to bullying lack access to a private space for retreat. 

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Open-plan offices entail a clearly increased risk of workplace bullying compared with employees having their own office or sharing with just a few colleagues. This is shown in research from Linköping University, Sweden. 

“Increased bullying is a tangible negative consequence of how you choose to organise the workplace. It’s important to highlight this, as it hasn’t previously been examined,” says Michael Rosander, professor at the Division of Psychology at Linköping University.

Open-plan offices, where many employees share the same space, have become increasingly common. Employers often justify this development as a way to use premises more efficiently and to encourage creative interactions between employees. However, research has shown that open-plan offices do not promote health, job satisfaction or productivity.  

Until now, it has been unclear whether open-plan offices also affect the risk of bullying and employees’ motivation to look for another job. Through surveys of more than 3,300 randomly selected individuals in employment in Sweden, Michael Rosander has now provided an answer. The results are published in the journal Occupational Health Science. 

Thirty per cent of those with some form of office-based work reported that they worked in a traditional open-plan office with no access to private space. Thirteen per cent worked in so-called activity-based offices, where employees spend part of their time in an open-plan environment but also have access to designated rooms for tasks requiring peace and quiet. The remainder had their own office or shared one with only a few colleagues.

For traditional open-plan offices, the survey responses showed a clearly increased risk of bullying compared with those who had their own office or shared an office with only a few colleagues. The difference remained regardless of factors such as personality traits and the extent of remote working. This suggests that the problems are indeed caused by the work environment in the office.  

The researchers’ explanation is that in traditional open-plan offices it is easier to notice colleagues’ shortcomings and become irritated by them. If someone gets frustrated and takes it upon themselves to “do something about” a colleague’s behaviour, and there are no clear guidelines for handling such situations, there is a risk that it may escalate into bullying. Those who are subjected to bullying lack access to a private space for retreat. 

Activity-based open-plan offices, by contrast, showed no increased risk of bullying, likely due to the availability of private spaces. However, in both types of open-plan office, employees were more likely to consider changing jobs. One possible explanation is that activity-based offices also involve more distractions, according to Michael Rosander.

For employers who have introduced, or are planning to introduce, open-plan offices, there are some lessons to be learned. One is to be prepared to deal with irritation and conflicts before they escalate. Another is the importance of providing rooms where employees can work undisturbed. Placing individuals with similar needs and tasks near one another may also reduce the risk of disruption.

“Traditional open-plan offices are in themselves negative for the individual, for productivity, and make people more likely to leave their job. Social interaction also suffers. So it’s worth considering how to handle it,” says Michael Rosander.

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Long-serving CEOs may weaken innovation, study finds

Companies led by long-serving chief executives may become less innovative over time unless challenged by strong independent boards.

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A new study from the University of East London has found that companies led by long-serving chief executives may become less innovative over time unless challenged by strong independent boards.

The research examined 215 FTSE 350 companies over an 11-year period between 2010 and 2021. It explored how CEO tenure and independent directors influence a company’s “R&D knowledge stock”, which is the research, expertise and technological capability built through investment in innovation.

The study published in the journal Corporate Governance found that CEOs who remain in office for many years often become more cautious and less willing to back risky research and development projects. These companies were more likely to reduce investment in innovation and long-term technological growth.

Firms with higher numbers of independent directors were more likely to continue building innovation capacity with experienced CEOs and independent directors forming an effective partnership, to combine deep company knowledge with outside challenge.

However, both experienced CEOs and independent directors become more cautious and less willing to back risky research and development projects when the company fails to meet performance aspirations, suggesting that independent directors do not have stable risk preferences.

The findings suggest that innovation is shaped not only by technology and finance, but also by leadership culture and corporate governance structures.

Author Dr Igbekele Sunday Osinubi, of the Royal Docks School of Business and Law, said: “Long-serving CEOs can bring valuable experience and stability, but there is also a risk that leaders become too cautious or too attached to existing ways of thinking. Our findings show that independent directors play an important role in encouraging companies to continue investing in innovation, especially during difficult periods when firms may otherwise retreat from long-term research and development.”

He added: “This matters beyond individual companies. Innovation drives productivity, competitiveness and economic growth. The study highlights how governance structures can influence whether firms continue building the knowledge and technologies that shape future industries.”

The paper argues that regulators and policymakers should consider governance reforms and incentives that encourage long-term innovation strategies, particularly in firms led by long-serving executives. The findings may also influence how boards think about CEO succession planning, oversight and the balance between short-term financial pressures and long-term investment.

Osinubi’s research, “Long CEO tenure, independent directors and R&D knowledge stock: the moderating effect of performance shortfalls”, was published in the Corporate Governance: The International Journal of Business in Society

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Profit alone is a poor measure of success, study shows companies can look efficient while harming the planet

Firms that appear highly efficient at generating revenue can perform far worse when their environmental footprint are included in the calculation.  

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Companies celebrated for strong financial performance may actually be inefficient once their environmental impact is taken into account, according to new research from the University of Surrey. 

The study, published in the European Journal of Operational Research, shows that firms that appear highly efficient at generating revenue can perform far worse when their environmental footprint are included in the calculation.  

To tackle this problem, researchers developed a new way to measure “sustainable corporate efficiency”, combining traditional financial metrics with environmental data such as energy consumption, carbon emissions and revenues generated from environmentally friendly products and services.  

Dr Menelaos Tasiou, co-author of the study and Senior Lecturer in Finance at the University of Surrey, said: “Businesses have long been judged on how efficiently they turn resources into profit. But if those profits come with large environmental costs, the picture changes completely. What we show is that true efficiency means generating revenue while also reducing the environmental damage caused by production. In other words, profitability alone can mask how wasteful a business really is when environmental costs are considered.  

The research analysed more than 2,800 publicly listed companies across 61 countries between 2010 and 2022, creating one of the largest global datasets measuring how sustainable companies are, when both financial performance and environmental impact are assessed together.  

The team combined company financial records, in alignment with the green economy (defined as a low carbon, resource efficient and socially inclusive economy), with environmental disclosures such as energy use and greenhouse gas emissions. They then applied a machine learning technique known as Convexified Efficiency Analysis Trees (CEAT) to estimate how efficiently companies convert resources into revenue while minimising pollution.  

Unlike older approaches, the method models the reality that production creates both desirable outputs, such as revenue, and undesirable ones, such as emissions. This allows companies to be compared on how well they balance profit with environmental performance.  

The results found a moderate link between financial efficiency and environmental efficiency, meaning many firms that are strong financially are not necessarily good at managing their environmental impact.  

The study also found large differences across industries and countries. Firms operating in sectors with high emissions, such as manufacturing and energy, often lagged behind leaders that were better at reducing carbon intensity while maintaining revenue.  

Dr Tasiou continued: “Measuring efficiency in this broader way can help investors, regulators and policymakers identify companies that are genuinely prepared for a low carbon economy. Stronger management capability plays a key role. Firms with more capable management teams were more likely to balance profitability with environmental responsibility, suggesting that leadership decisions can strongly influence sustainable performance.  

“As governments push towards net zero and investors scrutinise environmental performance more closely, companies that fail to integrate sustainability into their operations risk falling behind.” 

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