Does Board Diversity Critically Contribute towards Implementation of Strategy?
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Date
2023-12
Journal Title
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Publisher
IJMSR
Abstract
Implementation of strategy plays a key role in the performance of any organisation through
functional boards of directors. A key element of the board in great debate is the diversity of corporate boards.
This article aims to link the diversity of board composition as a corporate governance practice and
implementation of strategy at Kenya Ports Authority (KPA), Kenya. A random stratified sampling targeted
124 respondents from 5 key departments, at the KPA, Kenya. Data collection through structured
questionnaire gave a response rate of 72%. Using regression analysis, model results showed a strong
relationship between board diversity and implementation of strategy, with significant beta value of regression
coefficient (β=0.181, p-value= .000 (p<0.05). Among the board diversity practices, board members selected
from all professions as well as appropriate size of board and variations in gender of specific positions were
the strongest in influencing implementation of strategy. In conclusion, implementation of strategy requires a
careful mix of board diversity involving the composition of board, gender of board members and the size of
that board. It is expected the results will benefit stakeholders, government policy makers, ports sector players,
and academia. Additionally, the findings boost the body of knowledge of corporate governance practices and
implementation of strategy.
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Citation
Wainaina, D., & Hassan Ebrahim, A. (2023). Does Board Diversity Critically Contribute towards Implementation of Strategy? International Journal of Managerial Studies and Research.