Board members’ contribution to strategic decision-making in small firms
Pugliese, Amedeo & Wenstøp, Pingying Zhang (2007) Board members’ contribution to strategic decision-making in small firms. Journal of Management and Governance, 11(4), pp. 383-404.
This article explores how the boards of small firms actually undertake to perform strategic tasks. Board strategic involvement has seldom been investigated in the context of small firms. We seek to make a contribution by investigating antecedents of board strategic involvement. The antecedents are “board working style” and “board quality attributes”, which go beyond the board composition features of board size, CEO duality, the ratio of non-executive to executive directors and ownership. Hypotheses were tested on a sample of 497 Norwegian firms (from 5 to 30 employees). Our results show that board working style and board quality attributes rather than board composition features enhance board strategic involvement. Moreover, board quality attributes outperform board working style in fostering board strategic involvement
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