The effects of board size and diversity on strategic change

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.

[1]  Rita D. Kosnik.  Effects of Board Demography and Directors' Incentives on Corporate Greenmail Decisions , 1990 .

[2]  W. A. Meinhart.  Group Effectiveness in Organizations , 1981 .

[3]  New directions in hospital governance. , 1989, Hospital & health services administration.

[4]  W. Judge,et al.  Institutional and Strategic Choice Perspectives on Board Involvement in the Strategic Decision Process , 1992, Academy of Management journal. Academy of Management.

[5]  Robert N. Stern,et al.  The External Control of Organizations: A Resource Dependence Perspective. , 1979 .

[6]  Shaker A. Zahra,et al.  The relative power of ceos and boards of directors: Associations with corporate performance , 1991 .

[7]  Robert D. Tollison,et al.  The Rise and Decline of Nations , 1983 .

[8]  W. Boulton.  The evolving board: a look at the board's changing roles and information needs. , 1978, Academy of management review. Academy of Management.

[9]  M. Fennell.  The effects of environmental characteristics on the structure of hospital clusters. , 1980, Administrative science quarterly.

[10]  Kathleen M. Eisenhardt,et al.  Making Fast Strategic Decisions In High-Velocity Environments , 1989 .

[11]  Richard A. D'Aveni.  The Aftermath Of Organizational Decline: A Longitudinal Study Of The Strategic And Managerial Characteristics Of Declining Firms , 1989 .

[12]  M. Tushman,et al.  Organizational Evolution: A Metamorphosis Model of Convergence and Reorientation , 1985 .

[13]  K. Eisenhardt,et al.  Politics of Strategic Decision Making in High-Velocity Environments: Toward a Midrange Theory , 1988 .

[14]  Mancur Olson,et al.  The Rise and Decline of Nations: Economic Growth, Stagflation, and Social Rigidities. , 1983 .

[15]  W. Powell.  Expanding the Scope of Institutional Analysis , 1991 .

[16]  Ari Ginsberg,et al.  Measuring and modelling changes in strategy: Theoretical foundations and empirical directions , 1988 .

[17]  E. Herman.  Corporate Control, Corporate Power , 1982 .

[18]  J. Harrison.  The Strategic Use of Corporate Board Committees , 1987 .

[19]  Robert E. Hoskisson,et al.  BOARD OF DIRECTOR INVOLVEMENT IN RESTRUCTURING: THE EFFECTS OF BOARD VERSUS MANAGERIAL CONTROLS , 1993 .

[20]  J. Alexander,et al.  The effects of corporate restructuring on hospital policymaking. , 1988, Health services research.

[21]  Harbir Singh,et al.  Management-Board Relationships, Takeover Risk, and the Adoption of Golden Parachutes , 1989 .

[22]  Robert E. Hoskisson,et al.  The Composition of Boards of Directors and Strategic Control: Effects on Corporate Strategy , 1990 .

[23]  Delbecq Al,et al.  Developing strategic direction for governing boards. , 1988 .

[24]  M. E. Shaw.  Group dynamics : the psychology of small group behavior , 1971 .

[25]  Mayer N. Zald,et al.  The Power and Functions of Boards of Directors: A Theoretical Synthesis , 1969, American Journal of Sociology.

[26]  D. Schweiger,et al.  Group Approaches for Improving Strategic Decision Making: A Comparative Analysis of Dialectical Inquiry, Devil's Advocacy, and Consensus , 1986 .

[27]  J. Pfeffer.  Size, Composition, and Function of Hospital Boards of Directors: A Study of Organization-Environment Linkage , 1973 .

[28]  D. L. Gladstein.  Groups in context: A model of task group effectiveness. , 1984 .

[29]  A. Meyer.  Adapting to environmental jolts. , 1982, Administrative science quarterly.

[30]  Alan D. Meyer,et al.  ENVIRONMENTAL JOLTS AND INDUSTRY REVOLUTIONS: ORGANIZATIONAL RESPONSES TO DISCONTINUOUS CHANGE , 1990 .

[31]  Henry Mintzberg,et al.  Power in and Around Organizations , 1983 .

[32]  O. Williamson,et al.  Markets and Hierarchies: Analysis and Antitrust Implications. , 1977 .

[33]  Shaker A. Zahra,et al.  BOARD COMPOSITION FROM A STRATEGIC CONTINGENCY PERSPECTIVE , 1992 .

[34]  J. Pfeffer.  Size and Composition of Corporate Boards of Directors: The Organization and its Environment , 1972 .

[35]  Jan Kmenta,et al.  Elements of econometrics , 1988 .

[36]  James P. Walsh,et al.  Negotiated belief structures and decision performance: An empirical investigation , 1988 .

[37]  W. P. Barnett,et al.  Work group demography, social integration, and turnover. , 1989 .

[38]  James D. Thompson.  Organizations in Action , 1967 .

[39]  M. Wiersema,et al.  Top Management Team Demography and Corporate Strategic Change , 1992 .

[40]  Rita D. Kosnik.  Greenmail: A Study of Board Performance in Corporate Governance , 1987 .

[41]  Roice D. Luke,et al.  Strategic choices for America's hospitals : managing change in turbulent times , 1989 .

[42]  H. N. Butler,et al.  Corporate Governance and the Board of Directors: Performance Effects of Changes in Board Composition , 1985 .