Correlates of organizational effectiveness: A multilevel analysis of a multidimensional outcome [Book Review]

Journal of Business Ethics 13 (1):1 - 10 (1994)
This paper explores the relationship between environmental scarcity, organization size, and board composition with measures of financial and social performance. All three correlates were found to be related to both measures of performance and the hypotheses were largely supported. Anomalous relationships, however, were found between organizational size and social performance as well as outsider representation and financial performance. This study demonstrates that normative explorations focusing only on financial performance can lead to misleading conclusions about organizational effectiveness.
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