The challenge of board composition: Effects of board resource variety and faultlines on the degree of a firm’s international activity

Castro, Carmen Barroso; Pérez‐Calero, Leticia; Gravel, Julio Vecino; Villegas-Periñán, Ma del Mar

doi:10.1016/j.lrp.2020.102047

Cited by 14 publications

(8 citation statements)

References 95 publications

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“…that informational decision-making and social categorization perspectives are the basis of demographic faultline theory (van Knippenberg et al, 2004;Thatcher and Patel, 2012), and consistent with previous research (Richard et al, 2019;Barroso-Castro et al, 2022), this study applies these perspectives to the analysis of TMT faultlines and corporate industrial diversification.…”

Section: Task-related Tmt Faultlines and Corporate Industrial Diversi...supporting

confidence: 80%

Top management team faultlines and corporate industrial diversification: The mediating role of strategic attentional breadth

Chen

Chen²,

Xiong³

2023

Front. Psychol.

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IntroductionIntegrating faultline theory and the attention-based view, this paper explores the impact and process mechanisms of two types of faultlines (i.e., task-related faultlines and relationship-related faultlines) within top management teams (TMTs), specifically on corporate industrial diversification.MethodsBased on the unbalanced panel data of Chinese A-share non-financial listed firms from 2008-2021, this study uses the fixed-effects model for hypothesis testing.ResultsFirst, task-related TMT faultlines promote corporate industrial diversification, while conversely, relationship-related TMT faultlines inhibit corporate industrial diversification. Second, task-related TMT faultlines promote firms’ strategic attentional breadth, while conversely, relationship-related TMT faultlines inhibit firms’ strategic attentional breadth. Third, strategic attentional breadth plays a partially-mediating role in the relationship between both types of TMT faultlines and firms’ industrial diversification.DiscussionThis study extends the research related to corporate industrial diversification based on micro-level explanatory mechanisms, and also provides implications and guidance for the rational allocation of TMT and firms’ industrial diversification management practices.

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Section: Task-related Tmt Faultlines and Corporate Industrial Diversi...supporting

confidence: 80%

Top management team faultlines and corporate industrial diversification: The mediating role of strategic attentional breadth

Chen

Chen²,

Xiong³

2023

Front. Psychol.

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“…Van Puyvelde (2016) explores these ideas and synthesizes findings from several studies to summarize what we know and suggests theoretical approaches for future research. Studies consider a number issues, including: one’s sense of safety and trust among members (Huse & Zattoni, 2008; Nicholson et al, 2012), group norms about participation and conflict (Abd Kadir et al, 2018), cohesion among group members (Schoenberg et al, 2016), shared mental models (Solansky et al, 2008), individual commitment to the organization and governance functions (Minichilli et al, 2009), and power dynamics and structural features regarding informal group patterns such as coalitions and fault lines (Barroso-Castro et al, 2020). Task-related fault lines on boards can have strong negative effect on participation (Kaczmarek et al, 2011).…”

Section: Taking Stock: the Current State Of Nonprofit Governance Rese...mentioning

confidence: 99%

The Evolution of Nonprofit Governance Research: Reflections, Insights, and Next Steps

Renz

Brown

Андерссон

2022

Nonprofit and Voluntary Sector Quarterly

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The literature on nonprofit governance and boards has grown substantially during the past 50 years as researchers from a variety of disciplines and fields have studied governance systems and processes to examine how they are organized, the practices they employ, and their relations with and impacts on nonprofits. This essay offers a domain-based narrative review of the research on the governance of nonprofit organizations and how it has developed over these 50 years. Building on literature reviews and a Delphi study, we summarize the progression of nonprofit governance research, employ a multi-dimensional framework to summarize and assess the state of the field, and offer recommendations for future study. We find the increasingly multinational and multicultural literature of the field has become more rich, nuanced, and increasingly inclusive of contingency, complexity, paradox, and the diverse theoretical perspectives that will enhance our understanding of nonprofit governance.

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“…The cognitive capabilities board members collectively possess turn nationality diversity into a strategic resource that links to firm performance. Indeed, MNEs are found to follow a board internationalisation strategy to enhance their information processing capabilities and resource acquisition (Greve et al, 2015) with resource variety leading to greater international engagement (Barroso-Castro et al, 2020). The appointment of foreign nationals to enhance firm performance is also found by Estélyi and Nisar (2016).…”

Section: Nationality Diversity and Firm Performancementioning

confidence: 99%

“…However, as an extension of cultural diversity would result in a less integrated board (Stahl et al, 2009), the avoidance of conflict prevents boards from becoming more nationally diverse. Despite tenure representing a distinct cognitive profile that captures deeplevel characteristics (Barroso-Castro et al, 2020), there is a lack of empirical evidence on the effect of tenure on nationality diversity. We hypothesise that: H7: Board member tenure is positively related to gender diversity…”

Section: Board Member Tenure and Diversitymentioning

confidence: 99%

Board diversity as strategic choice and why it should matter to SMEs

Puntaier

Zhu²,

Hughes³

2022

IJEBR

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PurposeDiversity in boards has gained attention as a reflection of societal imbalances. The purpose of this paper is to investigate the impact of diversity in terms of both gender and nationality in management boards of small and medium-sized enterprises (SMEs) on firm performance from an upper echelons perspective. The authors also examine how board-specific characteristics influence the structural makeup of boards in gender and nationality diversity terms.Design/methodology/approachThe authors focus on the UK because of its individualistic society and flexible labour market and assess 309 SMEs in the manufacturing industry over 2009–2019. A 3-stage least squares (3SLS) estimator is used to analyse the data, the Shannon index to measure board diversity, return on assets as proxy for firm performance, and owner-manager presence, board member age and tenure are the board-specific characteristics of primary interest.FindingsBoth gender and nationality diversity contribute to firm performance and represent distinct upper echelon characteristics that change the cognitive and psychological dynamics of boards. Firms with larger boards do not perform better, but diverse boards reduce the narrowing view of CEOs. Yet the presence of owner-managers, despite their performance-enhancing contribution, holds firms back from benefitting from diversity as a strategic choice.Originality/valueThis study extends the upper echelons theory to include board diversity as an important aspect that should become more central in upper echelon thinking when understanding firm performance. The authors’ findings suggest that theoretical developments in search of understanding firm behaviour must proceed by accounting for diversity and not simply focusing on decision-making styles.

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The challenge of board composition: Effects of board resource variety and faultlines on the degree of a firm’s international activity

Cited by 14 publications

References 95 publications

Top management team faultlines and corporate industrial diversification: The mediating role of strategic attentional breadth

Top management team faultlines and corporate industrial diversification: The mediating role of strategic attentional breadth

The Evolution of Nonprofit Governance Research: Reflections, Insights, and Next Steps

Board diversity as strategic choice and why it should matter to SMEs

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