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The effects of board size and diversity on strategic change
Author(s) -
Goodstein Jerry,
Gautam Kanak,
Boeker Warren
Publication year - 1994
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250150305
Subject(s) - diversity (politics) , corporate governance , affect (linguistics) , constraint (computer aided design) , on board , business , political science , psychology , geography , mathematics , communication , finance , law , geometry , archaeology
This study examines an important potential conflict between the institutional, governance, and strategic functions of boards. We specifically test how higher levels of board size and diversity, traditionally associated with optimal institutional and governance performance of boards, affect the boards ability to initiate strategic changes during periods of environmental turbulence. Our findings suggest that board diversity, in particular, may be a significant constraint on strategic change.