Abstract
This study examines the relationship between board diversity and performance through the mediating effects of conflict in consumer cooperatives. Cooperative boards play a dual role, stimulating business activity and helping boards democratically controlled by their members. We argue that decision making, policy, and performance depend on the composition of a board. Analyzing 423 questionnaires submitted by 66 local cooperatives, this study shows that diverse boards can have a negative effect on performance, even though their functional diversity may be positive, while conflicts over performing tasks may mediate background diversity and performance.
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