Hsieh, T. J., Chung, H. J., and Huang, Y. A. 2013. Board Structure and Firm International Diversification: The Moderating Effects of Institutional Forces. NTU Management Review, : 25-56. https://doi.org/10.6226/NTURM2013.SEP.OG012
Tsun-Jui Hsieh, Associate Professor, Department of International Business, Providence University
Hsien-Jui Chung, Professor, Department of Business Administration, National Chung Cheng University
Yu-An Huang, Associate Professor, Department of International Business Studies, National Chi Nan University
Abstract
This paper investigates how board structure affects firm international diversification and examines the effects of board structure, including board size, international director, independent director, and institutional director on firm international diversification. This study further investigates the moderating effects of institutional forces on the relationships between board structure and firm international diversification. Using a sample of Taiwanese firms, the results show that board attributes are significantly associated with firm international diversification and that institutional forces partially moderate the relationships between board structure and firm international diversification. This study contributes to the growing literature in the field of strategic management by demonstrating the effect of institutional forces on the strategic board decision-making process.
Keywords
board structure international diversification institutional theory