Gender Faultline Strength on Boards of Directors and Strategic Change: The Role of Environmental Conditions

Author:

Wu Jie1ORCID,Triana María del Carmen2,Richard Orlando C.3,Yu Luman4ORCID

Affiliation:

1. King’s College, University of Aberdeen Business School, Aberdeen, UK

2. Vanderbilt University, Nashville, TN, USA

3. University of Massachusetts-Amherst, Amherst, MA, USA

4. University of Macau, Taipa, Macau, China

Abstract

Drawing on the notion of “faultlines” and the upper echelons perspective, we argue that the gender faultline strength of a board of directors is negatively related to strategic change. More interestingly, while gender faultline strength negatively relates to strategic change under low levels of environmental complexity, environmental dynamism, and environmental munificence, it is positively related to strategic change when environmental complexity, environmental dynamism, and environmental munificence are at high levels. The analyses of panel data of 5781 firm-year observations of 1171 Chinese firms provide support for the hypotheses.

Publisher

SAGE Publications

Subject

Organizational Behavior and Human Resource Management,Applied Psychology,Arts and Humanities (miscellaneous)

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