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This study investigates the effect of board independence on performance across different strategies. Using moderated regression analyses, the results confirm our hypothesis that board independence has a significantly more positive effect on performance for firms pursuing a strategy of cost efficiency than for those pursuing a strategy of innovation. The results of this study indicate that consideration of firms' competitive strategy can provide a better understanding of the relationship between board independence and firm performance.
Gani et al. (Sun,) studied this question.
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