The positive correlation between the presence of female directors on boards and corporate performance suggests that women appear to make better directors than men. But why? Using the Defined Issues Test (DIT) instrument (Rest, 1979, 1986), 624 board directors (75% male; 25% female) were surveyed to determine their reliance on three reasoning methods (i.e., 'Personal Interest', 'Normative' and 'Complex Moral Reasoning' or 'CMR') to make decisions. The results showed that female directors achieved significantly higher scores than their male counterparts on the CMR dimension which essentially involves making consistently fair decisions when competing interests are at stake. Since directors are compelled to make decisions in the best interest of their corporation while taking the viewpoints of multiple stakeholders into account, having a significant portion of female directors with highly developed CMR skills on board would appear to be an important resource for making these types of decisions and making them more effectively.
Research on the strategic management of Information Technology (IT) resources has mostly focused on the oversight provided by the management team as a means to increase organizational performance. In recent years, boards of directors have also increased their involvement in IT matters, and various theoretical lenses suggest that this oversight too has the potential to influence organizational performance. Hence, this study synthesizes the resource-based and contingency views of MIS with corporate governance theories, and examines key antecedents and consequences of board-level IT governance (ITG) using a multi-method approach. Structural Equation Modelling analysis applied to organization-level data collected from 171 board members suggested that the level of ITG exercised by boards was contingent upon the organization's 'IT use mode', along the two dimensions of need for (a) fast and reliable IT, and (b) new innovative IT. But, the findings further suggested that the contingency approach may be suboptimal because it can cause new ways of leveraging IT to be ignored. High levels of board-level ITG, regardless of existing IT needs, increased organizational performance. This phenomenon was illuminated with applicability checks. Moreover, content analysis and structured interviews with board members further enriched these insights.
In modern organizations, information technologies (IT) often help drive organizational strategies. As such, IT require both judicious planning and oversight. While executive oversight over IT is quite common nowadays, several studies indicate that due to the many benefits and risks associated with IT, more/better board-level oversight may be in order. Unfortunately, there is a scarcity of research on the involvement of board members in IT governance. We attempt to partially fill this gap by empirically examining the degree to which the 27 IT governance questions that make up an IT board governance framework recommended by the Canadian Institute of Chartered Accountants are raised by the board members of 94 Canadian firms. We also investigate the extent to which the questions are considered important. Our findings show that: board members use only some of the IT governance questions and not all the recommended ones; there is a gap between the IT governance questions board members ask and the ones they perceive to be important; and the number and importance of IT governance questions that board members ask appear to vary with both their organization’s strategic use of IT and the need for IT reliability. Implications for research and practice are offered.
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