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National culture diversity in new venture boards: The role of founders relational demography
Univ Utrecht, Netherlands.
Linköping University, Department of Management and Engineering, The Institute for Analytical Sociology, IAS. Linköping University, Faculty of Arts and Sciences.
Jonkoping Univ, Sweden; Kristianstad Univ, Sweden.
(English)In: Strategic Entrepreneurship Journal, ISSN 1932-4391, E-ISSN 1932-443XArticle in journal (Refereed) Epub ahead of print
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
WILEY.
Keywords [en]
board of directors; national culture diversity; new ventures
National Category
Business Administration
Identifiers
URN: urn:nbn:se:liu:diva-159873DOI: 10.1002/sej.1327ISI: 000480012700001OAI: oai:DiVA.org:liu-159873DiVA, id: diva2:1346258
Note

Funding Agencies|Jan Wallanders och Tom Hedelius Stiftelse samt Tore Browaldhs Stiftelse [P2016-0246: 1]; Riksbankens Jubileumsfond [M12-0301: 1, M12-0301]; Linkoping University

Available from: 2019-08-27 Created: 2019-08-27 Last updated: 2019-11-20

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CiteExportLink to record
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Citation style
  • apa
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Output format
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