Crisis? What crisis? Exploring the cognitive constraints on boards of directors in times of uncertainty

Merendino, Alessandro; Sarens, Gerrit

doi:10.1016/j.jbusres.2020.07.005

Cited by 24 publications

(34 citation statements)

References 104 publications

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“…Thus, they would assist in improve earnings outcomes and enhance the quality of managerial activities. Similarly, (Merendino and Sarens, 2020) shows that larger boards enhance company's value due to the fact that, it increases the possibility of inclusion of more independent board members, the inability of the CEO to manipulate large boards and collaborative expertise that is acquired from experienced board members.…”

Section: Theory and Hypothesis Developmentmentioning

confidence: 99%

Corporate governance mechanism and firm performance in Saudi Arabia

Bazhair

2021

EEA

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The intention of this study is to examine the relationship of board size with firm performance among the health care equipment and services listed firms in Saudi Arabia for the period ranging from 2010 to 2019. The pooled ordinary least square (POLS) regression findings mention that the board size was positively associated with firm performance in both return on assets (ROA) and return on equity (ROE) models. This shows that better governed companies tend to attain better firm performance. This study results mention that in perspective of Saudi Arabia, enforcing a voluntary ‘comply or explain’ CG regime has, so far, a good effect on firm performance. The results documented by this study are important for market levels, decision makers and the company.

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Section: Theory and Hypothesis Developmentmentioning

confidence: 99%

Corporate governance mechanism and firm performance in Saudi Arabia

Bazhair

2021

EEA

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“…Employed successfully, it can facilitate the quick restoration of disrupted or weakened systems (Williams et al ., 2017 ) and be a source of competitive advantage for those able to respond quickly to exploit new emerging opportunities (Bundy et al ., 2017 ). Despite an established body of literature retrospectively exploring the aftermath of crisis events or analysing a crisis as a process, which unfolds over time (Claeys and Cauberghe, 2014 ; Williams et al ., 2017 ), scarce research has explored a crisis as an event which occurs suddenly, is unexpected and has continued longevity and uncertainty (Merendino and Sarens, 2020 ).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…To develop an effective crisis response strategy to a crisis such as COVID‐19, organizations must possess not only the necessary capabilities needed to rapidly reconfigure and leverage resources to adapt to sudden changes in the environment (Foss, 2020 ), but also the flexibility to readjust basic assumptions, behaviours (Pearson and Clair, 1998 ), routines and processes and ensure emotional regulation (Merendino and Sarens, 2020 ). The socio‐economic shock created by COVID‐19 resulted in the need for new work‐from‐home (WFH) business models enforced by governments since March 2020.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

A Typology of Emerging Market SMEs’ COVID‐19 Response Strategies: The Role of TMTs and Organizational Design

Puthusserry

King

Miller

et al. 2022

British J of Management

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The unique challenges posed by COVID-19 call for new insights into how firms respond to multiheaded and multistage evolving global crises. Whilst prior research acknowledges the potential role flexible organizational designs and top management teams (TMTs) have for crisis management, these bodies of literature have evolved separately with limited cross-fertilization. In this study, we seek to provide a contextualized explanation of research phenomena by drawing upon multiple layers of context -namely the environment, TMT and organisational context. Our findings provide vital insights into how emerging market Indian SMEs' organizational designs and TMT configurations led to differential COVID-19 crisis response strategies. We develop a typology that identifies four strategic responses and illustrate that not all emerging market SMEs are vulnerable at the time of crisis. Our findings extend knowledge on how emerging market SMEs can navigate external shocks such as those caused by COVID-19. In particular, our research has implications for policymakers and emerging market firms seeking to understand and implement effective organizational designs and policies that can weather the current COVID-19 pandemic, as well as future multiheaded and multistage black swan crises.

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“…Scholars in finance have shown mixed results on the relationships between the size of the board and firm performance. A stream of literature has echoed that large boards increase firms' value due to collaborative expertise that is acquired from experienced board members, the inability of the CEO to manipulate large boards due to different personalities, and the fact that it increases the possibility of inclusion of more independent board members (Merendino & Sarens, 2020). Other studies have argued that smaller boards are more efficient in increasing firm value in that it reduces costs and dormant members, enhances easy coordination, and provides board cohesion (Kao, Hodgkinson, & Jaafar, 2019).…”

Section: Board Size and Firm Performancementioning

confidence: 99%

Does Structural Power Matter? Board Attributes and Firm Performance

Korir

Tenai

2020

SJOM

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Purpose- The study investigates the moderating role of Chief Executive Officer Duality onboard attributes and firm performance of companies listed in Kenya. Design/Methodology- The research used a longitudinal research design. Panel data were derived from published accounts for sixteen years that is from 2002-2017. IGLS regression models were used to test the hypothesis. Findings- The empirical results indicated that the independence of the board, the size of the board, and the duration in which the board member served the organization positively influence the firm performance. However, CEO duality does not moderate the relationship. Practical Implications- Regulatory bodies such as NSE and CMA in Kenya should ensure that listed firms have more independent directors serving a board, ensure a reasonable size of the board and increase the board tenure to enhance firm performance. Further, the combined roles of the CEO and chairman may not influence the efficiency of the board in the Kenyan context.

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Crisis? What crisis? Exploring the cognitive constraints on boards of directors in times of uncertainty

Cited by 24 publications

References 104 publications

Corporate governance mechanism and firm performance in Saudi Arabia

Corporate governance mechanism and firm performance in Saudi Arabia

A Typology of Emerging Market SMEs’ COVID‐19 Response Strategies: The Role of TMTs and Organizational Design

Does Structural Power Matter? Board Attributes and Firm Performance

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