THE EFFECTS OF BOARD SIZE AND DIVERSITY ON STRATEGIC CHANGE

This study examines an important potential conflict between the instit utional, governance, and strategic functions of boards. We specificall y test how higher levels of board size and diversity, traditionally as sociated with optimal institutional and governance performance of boar ds, affect the board's ability to initiate strategic changes during pe riods of environmental turbulence. Our findings suggest that board div ersity, in particular, may be a significant constraint on strategic ch ange.