Gender diversity, governance configurations, and financial performance in family firms: evidence from European emerging markets

Purpose This study examines the diversity of top management teams (TMTs) in family firms operating in European Emerging Markets, with particular attention to gender composition and governance configurations defined by ownership and management structures. The study addresses limited configurational evidence on how gender diversity, embedded within family governance structures, relates to organizational characteristics and financial performance in post-transition economies. Design/methodology/approach Using firm-level data, the study analyses a large sample of family small and medium-sized enterprises operating in European Emerging Markets. A cluster analysis is employed to identify distinct ownership-management governance configurations based on family ownership, family involvement in management, gender composition of TMTs, firm age, and size. Differences in structural characteristics and financial performance across clusters are subsequently examined. Findings The analysis identifies five distinct clusters of family firms, reflecting different governance and leadership configurations, including male-managed and female-managed family-dominated firms, co-managed firms, co-owned and co-managed firms, and mature family firms. The results suggest that gender representation in leadership within family-owned and -managed firms follows a polarized pattern, with women either occupying central managerial roles or remaining largely absent from formal leadership structures. This pattern indicates a link between ownership structures and gendered leadership configurations. While female-managed family firms are significantly smaller in terms of employment, no statistically significant differences in financial performance are observed between male- and female-managed family-dominated firms. This suggests that gender diversity in TMTs is highly heterogeneous across firms but does not translate into systematic performance differences. Research limitations/implications The cross-sectional design and country-level data imbalance limit causal inference, as well as the ability to capture the dynamic evolution of ownership-management configurations and gender roles over time. In addition, the use of quantitative secondary data does not allow for distinguishing between symbolic and substantive participation of women in leadership positions. These limitations suggest avenues for future longitudinal and qualitative research that could provide deeper insights into governance processes, succession dynamics, and the actual influence of women in family firm leadership. Practical implications The results suggest that policies and advisory programs targeting family firms should avoid one-size-fits-all approaches and instead account for heterogeneity in ownership–management configurations, succession dynamics, and the role of family control. In particular, managers should recognize that women's participation in leadership is often shaped by governance structures and institutional constraints. These factors may limit their strategic influence despite formal inclusion. Therefore, firms should not focus only on increasing the number of women in TMTs, but also on assigning them clear responsibilities and real decision-making authority. Originality/value The study contributes to family business research by moving beyond linear approaches and adopting a configurational perspective that integrates gender diversity with ownership structures and managerial composition. It further contributes by providing novel evidence from underexplored European Emerging Markets.