Purpose- Although there is empirical evidence that the board members has a major impact to firm performance, studies are fragmented, with many focused on skewed thinking. Design/ methodology- Explanatory research design was utilized. 371 private firms in Kenya were studied. Hierarchical regression was done to test for moderation. Findings- The results show that a diverse board promotes company performance, while a short tenured CEO reduces the effect of diverse board members on firm performance. Practical implication- privately owned firms should consider diverse board members to improve firm performance. However, when CEOs stay in office for an extended period of time, they wield enormous power to the point that board members become passive and succumb to the CEO's directives, negatively impacting firm performance. Originality- the study findings seeks to address gaps in existing research by giving more proof on the association between a diverse board members and business performance and whether CEO tenure moderates the relationship.
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