Does it pay to act feminine? A cross-cultural study of gender stereotype endorsement and cognitive legitimacy in the evaluation of new ventures

Purpose: Does gender stereotype endorsement play a role in the customer's cognitive evaluation of new ventures owned by women entrepreneurs? The authors’ cross-cultural study integrates literature on gender stereotype endorsement and cognitive legitimacy to address this research question. Design/methodology/approach: The authors use a two-study experimental design and analyze our results by cultural context to test our hypotheses: one drawn from college students in Iran and one from working professionals in the United States. Findings: The authors’ comparative results suggest that the evaluation of feminine versus masculine characteristics of women entrepreneurs varies depending on the evaluator's (in this case the customer's) endorsement of gender stereotypes and the cultural context. Specifically, the authors found that a new venture owned by a woman entrepreneur who displays feminine characteristics is perceived as more legitimate when the customer endorses feminine stereotypes, regardless of the country. Research limitations/implications: The authors’ research contributes to the literature on cognitive legitimacy and women's entrepreneurship by unveiling the cultural conditions and factors that allow women entrepreneurs to benefit from acting in a stereotypically feminine way. The authors use a binary approach to gender. Future research should extend our findings to also include a non-binary approach. Originality/value: This study contributes to women's entrepreneurship research by unraveling the implications of gender stereotype endorsement, legitimacy and culture in customer evaluation of ventures owned by women.