When the firm is located in a very ________ competitive environment, board involvement is most effective when outside board members are drawn from strategically dissimilar firms.
A) stable
B) strong
C) unstable
D) complex

Question

Quizplus · Accepted Answer

When the firm is located in an unstable competitive environment, it is important to have outside board members who can bring diverse perspectives and experiences. This helps the firm to adapt to the rapidly changing environment and stay competitive. Board members from strategically dissimilar firms can bring new ideas and insights, which can help the firm to navigate through uncertainty and complexity. On the other hand, in a stable or strong competitive environment, the focus of the board may be more on operational efficiency and maintaining the status quo, and board members from similar firms may be more effective.

When the Firm Is Located in a Very ________ Competitive