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National culture diversity in new venture boards: The role of founders' relational demography
Utrecht University School of Economics,Faculty of Law, Economics and Governance, Utrecht University, Utrecht, The Netherlands.
Institute for Analytical Sociology (IAS), Department of Management and Engineering, Linköping University, Norrköping, Sweden.
Jönköping University, Jönköping International Business School, JIBS, Business Administration. Department of Business Administration, Kristianstad University, Kristianstad, Sweden.ORCID iD: 0000-0002-8938-2150
2019 (English)In: Strategic Entrepreneurship Journal, ISSN 1932-4391, E-ISSN 1932-443X, Vol. 13, no 3, p. 410-434Article in journal (Refereed) Published
Abstract [en]

Research Summary

This study explains the conditions under which new venture boards are less or more culturally diverse in terms of their directors' country of birth. Longitudinal data on 5,515 Swedish ventures suggest that most directors are recruited from founders' proximate social settings?neighborhoods in which they reside and past workplaces?and that diversity levels in these social settings strongly predict the national culture diversity in venture boards. Given the rapid internationalization of workplaces and regions around the world, this paper provides important clues regarding how culturally diverse upper echelons are being incorporated into the organizational design of new ventures.

Managerial Summary

Most New Venture Boards exhibit limited diversity in terms of their directors' country of birth, as they are drawn from the venture founders' network. Yet, some new venture boards are indeed born diverse. Our study reveals that founders with prior exposure to culturally diverse workplaces and residential neighborhoods are much more likely to design a culturally diverse board at founding. Given the rapid internationalization of workplaces and regions in most countries around the world, our paper provides important clues regarding how national culture diversity in top management emerges and is being incorporated into the organizational design of new ventures.

Place, publisher, year, edition, pages
John Wiley & Sons, 2019. Vol. 13, no 3, p. 410-434
Keywords [en]
board of directors, national culture diversity, new ventures
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-45433DOI: 10.1002/sej.1327ISI: 000480012700001Scopus ID: 2-s2.0-85070085164Local ID: HOA JIBS 2019;IHHÖvrigtISOAI: oai:DiVA.org:hj-45433DiVA, id: diva2:1340308
Funder
The Jan Wallander and Tom Hedelius Foundation, P2016-0246:1Riksbankens Jubileumsfond, M12-0301:1, M12-0301Available from: 2019-08-05 Created: 2019-08-05 Last updated: 2019-10-03Bibliographically approved

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