Board Background Heterogeneity and Exploration‐Exploitation: The Role of the Institutionally Adopted Board Model

Boards of directors are in a position to contribute vital knowledge resources to strategy‐making. We propose that the relation between board functional background heterogeneity and exploration‐focused versus exploitation‐focused strategy is contingent on the extent to which the institutionally adopted board model enables or constrains inclusion of the board's knowledge resources in strategy‐making. We empirically juxtapose the A nglo‐ S axon...