Organizational performance and adaptation: effects of environment and performance on changes in board composition.
This study examined performance as a moderator of organizational adaptation to environmental change. Change in the composition of boards of directors was examined as a dependent variable reflecting organizational attempts to deal with changing external contingencies. We tested specific hypotheses in an analysis of 290 California hospitals over a seven-year period. Results indicate that hospitals change the composition of their boards to adapt to changing environmental contingencies but that the hospitals' performance moderates the rate of their response, with poorer performers being more willing to initiate changes in board composition than strong performers.
Boeker
W
W
Graduate School of Business, Columbia University.
Goodstein
J
J
D000288:Administrative Personnel; D002140:California; D003659:Decision Making, Organizational; D004465:Economic Competition; D006075:Governing Board / Q000458:organization & administration* / Q000706:statistics & numerical data; D006740:Hospital Administrators; D006752:Hospital Planning / Q000458:organization & administration*; D016018:Least-Squares Analysis; D006278:Medicare; D009936:Organizational Innovation; D010820:Physicians; D012922:Social Change; D014481:United States