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.