Who leads matters: female CEOs and supplier diversity through the dual lenses of status characteristics and signaling theories

Purpose This study investigates whether female CEOs effectively promote supplier diversity, an underexplored yet critical aspect of diversity, equity, and inclusion in supply chain management. Drawing on status characteristics theory and signaling theory, we examine how female CEOs influence supplier diversity and how CEO characteristics moderate this relationship. Design/methodology/approach Using a panel dataset of US publicly listed firms, we employ a multi-level fixed effects model to test the impact of female CEOs on supplier diversity. We further examine the moderating effects of CEO characteristics – compensation, age, race, and succession – on this relationship. Findings Female CEOs significantly enhance supplier diversity, and this effect is strengthened by CEO age, compensation, race, and succession. While female CEOs outperform male CEOs in implementing supplier diversity practices, no significant gender difference is observed in stated commitments. Moreover, the positive effect of female representation in the top management teams on supplier diversity only emerges when a female holds the CEO position. Practical implications The findings highlight the critical role of female CEOs in advancing supplier diversity and suggest that boards should strengthen the status attributes of female leaders, such as compensation and authority, to translate leadership diversity into tangible outcomes. Organizations are encouraged to integrate female leadership considerations into governance and diversity strategy design. Social implications By showing how positional authority enables female leaders to drive inclusive supply chain practices, this study underscores the broader societal value of enhancing women’s access to high-level leadership roles. Supplier diversity initiatives supported by female CEOs not only expand economic opportunities for disadvantaged groups but also promote fairness and equity in business ecosystems. Originality/value This study advances the debate on female leadership effectiveness by applying status characteristics theory and signaling theory to explain why female CEOs, rather than gender ratios alone, matter for organizational diversity outcomes. It offers novel insights into the boundary conditions of female CEO effectiveness and provides both theoretical and practical contributions to supply chain management and corporate governance.