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The moderating effect of board size on the relationship between diversification and tourism firm performance

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  • Chen Zheng

    (The Hong Kong Polytechnic University, China)

  • Henry Tsai

    (The Hong Kong Polytechnic University, China)

Abstract

This study examines the effects of diversification strategy and board size on firm performance as well as the moderating effect of board size on the relationship between diversification strategy and firm performance in the Chinese tourism industry from 2008 to 2015. The results show that related diversification positively influenced Chinese tourism firm performance, and unrelated diversification negatively influenced it. Board size was found to negatively moderate the relationship between related diversification and firm performance and to positively moderate the relationship between unrelated diversification and firm performance. In addition, the results imply that small boards are beneficial to Chinese tourism firms when both related and unrelated diversification strategies are implemented.

Suggested Citation

  • Chen Zheng & Henry Tsai, 2019. "The moderating effect of board size on the relationship between diversification and tourism firm performance," Tourism Economics, , vol. 25(7), pages 1084-1104, November.
    • Handle: RePEc:sae:toueco:v:25:y:2019:i:7:p:1084-1104
    DOI: 10.1177/1354816618823427
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    Cited by:

    1. Ali Uyar & Mehmet Ali Koseoglu & Cemil Kuzey & Abdullah S Karaman, 2023. "Does firm strategy influence corporate social responsibility and firm performance? Evidence from the tourism industry," Tourism Economics, , vol. 29(5), pages 1272-1301, August.
    2. Yue Vaughan & Yoon Koh, 2023. "Better-connected boards and their influence on corporate social responsibility: Evidence from U.S. restaurant industry," Tourism Economics, , vol. 29(8), pages 2057-2080, December.

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