Interactions on boards and board capability: two empirical studies of the performance effects of boards
by Mark Macus
International Journal of Human Resources Development and Management (IJHRDM), Vol. 5, No. 4, 2005

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.

Online publication date: Sat, 24-Dec-2005

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