[PDF][PDF] Board leadership and strategy involvement in small firms: A team production approach

S Machold, M Huse, A Minichilli… - … An International Review, 2011 - papers.ssrn.com
Corporate Governance: An International Review, 2011papers.ssrn.com
Abstract Research Question/Issue: Boards' involvement in strategy is generally seen to be
an indicator of board effectiveness, but less is known about the relationship between board
leadership and strategy involvement, especially in small firms. This study analyzes board
leadership from a team production perspective as an antecedent to board strategy
involvement in small firms. Research Findings/Insights: Using survey data from 140 small
firms in Norway collected in two different time periods, we demonstrate that leadership …
Abstract
Research Question/Issue: Boards' involvement in strategy is generally seen to be an indicator of board effectiveness, but less is known about the relationship between board leadership and strategy involvement, especially in small firms. This study analyzes board leadership from a team production perspective as an antecedent to board strategy involvement in small firms. Research Findings/Insights: Using survey data from 140 small firms in Norway collected in two different time periods, we demonstrate that leadership behaviors and processes have a greater impact on boards' strategy involvement than structural leadership characteristics alone. Theoretical/Academic Implications: The study provides empirical support for a team production perspective on boards. Our data show that (1) board members' knowledge, board development, and board chairperson leadership efficacy positively influence boards' strategy involvement, and (2) chairperson leadership efficacy enhances boards' strategy involvement under structural conditions of combined CEO/chairperson leadership and changes in board composition. These findings expand the traditional understanding of structural leadership conditions.
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