Board and executive gender diversity as a driver of airline efficiency: A network-DEA analysis

Abstract

This paper investigates the influence of gender diversity on the efficiency of airlines. Despite global progress towards gender equality, the airline industry continues to exhibit a considerable gender gap, especially in leadership positions. Our study utilises a Network Data Envelopment Analysis (DEA) to assess the performance of airlines concerning gender diversity in board and executive roles. By analysing a dataset of airlines of different continents and covering the period before and after the COVID-19 crisis, gender diversity's impact on airline efficiency (defined as the ratio of the sum of its weighted outputs to the sum of its weighted inputs) is examined. A second-stage estimation further enriches the analysis to assess the influence of external variables. Our findings reveal that airlines with higher gender diversity on their boards and executive teams exhibit better efficiency before and after COVID-19 crisis. The study contributes to the broader discourse on gender diversity in traditionally male-dominated sectors, offering insights into the strategic benefits of inclusive leadership practices.