Governance Effectiveness: The Interaction of Ethno-Racial Diversity and Social Capital.

This research examines the relationship among Board Diversity, Social Capital, and Governance Effectiveness by asking, "does board ethno-racial diversity moderate the relationship between Social Capital and Governance Effectiveness, and if so, how?" Exploring the direct and interacting effects of demographic diversity and Social Capital, and their relation to governing-group effectiveness using a two-sample field survey design, we illustrate whether heterogeneous or homogeneous group compositions amplify or attenuate Governance Effectiveness, and to what degree. Primary analyses find no support for Board Diversity moderating the Social Capital-Governance Effectiveness relationship, with secondary analysis revealing a more complex interaction for Governance Effectiveness, albeit inconsistently, across samples. Our investigation points to the value of social resources in understanding governance as an inherently socially complex activity or capability, predicated on truce or mutual agreement and shaped by the composition and connections of boards. [ABSTRACT FROM AUTHOR]