Abstract

Board of directors deal with complex, strategic issues and conflict among members is natural. Group conflict is often associated with reduced productivity and lower cohesiveness. However, conflict might also improve group decision making and governance practices. This paper seeks to examine the relationship among the following: (a) three types of conflict (cognitive, affective and process) and board performance; (b) board performance and firm performance; and (c) the mediating role of board performance on board conflict and firm performance. It was found that only cognitive conflict is (positively) related to board performance. In addition, board performance does not impact firm performance nor board performance mediates the relationship between board conflict and firm performance.

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