Diversity of Board Members and Organizational Performance: An integrative perspective

doi:10.1111/j.1467-8683.1995.tb00116.x

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Wiley InterScience

Corporate Governance: An International Review

Volume 3 Issue 4, Pages 189 - 200

Published Online: 27 Oct 2006

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Diversity of Board Members and Organizational Performance: An integrative perspective

Christoph M. Treichler ¹

¹ Christoph M. Treichler is at the University of Zurich, Institute for Business Administration, Department of Strategic Management, Plattenstrasse 14, 8032 Zurich, Switzerland (011 411) 257–2964.

ABSTRACT

This article examines the structure of boards and its effects on the performance of significant board functions. Composition of boards is measured by size, outside director representation and cognitive, as well as demographic diversity. A firm's environment, strategy, structure and culture, and factors attributed to personal characteristics of board members were viewed as important determinants affecting effectiveness of boards. Most important, decisions on board size and composition involve a trade-off between benefits of diversity and enhanced costs of group development and group decision processes.

DIGITAL OBJECT IDENTIFIER (DOI)

10.1111/j.1467-8683.1995.tb00116.x About DOI