Title: Interactions on boards and board capability: two empirical studies of the performance effects of boards

Authors: Mark Macus

Addresses: IFPM Centre for Corporate Governance, University of St. Gallen, Dufourstrasse 40a, CH-9000 St. Gallen, Switzerland

Abstract: Existing research on the effects of boards of directors on firm performance has failed to produce consistent empirical results. In the research presented, I argue that this may be due to the fact that such research has largely ignored the interactions that take place on a board and that serve as an enabling mechanism for the board to be able to contribute to firm performance. I introduce the concept of |board capability|, which allows scholars to consider a board|s composition, structure and interactions simultaneously. Also, the results of two empirical studies of boards in adolescent companies are presented. Taken together, these studies support the theoretical argument for the importance of board interactions and shed light on the performance effects of boards in adolescent companies.

Keywords: corporate governance; board of directors; interactions; board capability; adolescent firms; software industry; firm performance; organisational performance; problem solving.

DOI: 10.1504/IJHRDM.2005.008509

International Journal of Human Resources Development and Management, 2005 Vol.5 No.4, pp.389 - 411

Published online: 24 Dec 2005 *

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