Board Capability: An Interactions Perspective on Boards of Directors and Firm Performance
Journal
International Studies of Management and Organization
ISSN
0020-8825
ISSN-Digital
1558-0911
Type
journal article
Date Issued
2008-11-07
Author(s)
Abstract
Multitheoretic board research and research on board processes have, to date, been pursued in isolation. I argue that board interactions can serve as the conceptual basis for a combination of these two approaches to board research. I argue that board composition and board structure merely endow the board with a certain potential to contribute to firm performance but do not ensure that this potential actually comes to bear. Based on the insights from social psychology and group research, I propose board interactions as an enabling factor that allows boards to realize their problem-solving potential and to thus contribute to the firm's performance. Based on this theoretical argument, I suggest that boards with adequate configurations of composition, structure, and interactions can build "board capability" that would enhance the firm's competitive advantage.
Language
English
HSG Classification
contribution to scientific community
Refereed
No
Publisher
Sharpe
Publisher place
Armonk, NY
Volume
38
Number
3
Start page
98
Subject(s)
Division(s)
Eprints ID
206901