Differential interpretation of entrepreneurial signals across genders: The role of institutional context

Abstract

Social impact accelerators (SIAs) support disadvantaged entrepreneurs in pursuing business goals. Although prior studies have recognised that SIA managers may interpret identical signals from men- or women-led teams differently during the selection process, the role of institutional contexts in gender disparities remains unclear. Integrating a gender stereotype lens with signalling theory, we contend that gender disparities in signalling effects vary across institutional contexts. Supporting this contention, our analysis of 10,217 startup applications across 232 SIAs in 143 countries (2016–2018) confirms that men-led ventures that secured external equity funding are more likely to be accepted by SIAs, while this effect is insignificant for women-led ventures. This gender disparity in signalling effect is attenuated in nations with higher perceived external equity funding availability and greater gender equality, suggesting that gender stereotyping exerts less influence in these contexts. These findings offer important policy and practical implications for creating a fair market for entrepreneurs.