Gender Diversity and Organizational Performance: An Empirical Study of Leadership Representation in Nepal and South Asia

Abstract

Gender diversity in leadership has emerged as a pivotal component of effective management and sustainable organizational development, particularly within developing economies such as Nepal and the broader South Asian region. This empirical study investigates the relationship between gender diversity in leadership representation and organizational performance through a mixed-method approach that integrates both primary and secondary data sources. Grounded in the Resource-Based View (RBV), Upper Echelons Theory and Social Role Theory, the research explores how gender-inclusive leadership structures influence innovation, employee satisfaction, decision-making quality and financial outcomes.Primary data were collected through structured questionnaires administered to 180 mid and senior-level managers across the banking, manufacturing, education and service sectors in Nepal. Secondary data were obtained from organizational annual reports, national gender statistics and international databases such as UN Women, the World Economic Forum’s Global Gender Gap Report and the Asian Development Bank’s gender indicators. Using descriptive statistics, correlation and multiple regression analyses, the study reveals a significant positive association between gender diversity in leadership positions and organizational performance. Furthermore, organizations with inclusive gender policies demonstrated higher innovation capacity, stronger employee engagement and improved adaptability compared to those with limited female representation in decision-making roles.The findings provide robust empirical evidence supporting the strategic and ethical importance of gender diversity in management. The study contributes to the growing body of knowledge on diversity management in the Global South by contextualizing gender equity within South Asian corporate and socio-economic environments. Policy implications emphasize the need for institutional frameworks that foster gender-balanced leadership, promote inclusive organizational cultures and enhance competitiveness through diversity-driven innovation.