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Open Access
Article
Publication date: 26 January 2024

Alana Vandebeek, Wim Voordeckers, Jolien Huybrechts and Frank Lambrechts

The purpose of this study is to examine how informational faultlines on a board affect the management of knowledge owned by directors and the consequences on organizational…

Abstract

Purpose

The purpose of this study is to examine how informational faultlines on a board affect the management of knowledge owned by directors and the consequences on organizational performance. In this study, informational faultlines are defined as hypothetical lines that divide a group into relatively homogeneous subgroups based on the alignment of several informational attributes among board members.

Design/methodology/approach

The study uses unique hand-collected panel data covering 7,247 board members at 106 publicly traded firms to provide strong support for the hypothesized U-shaped relationship. The authors use a fixed effects approach and a system generalized method of moments approach to test the hypothesis.

Findings

The study finds that the relationship between informational faultlines on a board and organizational performance is U shaped, with the least optimal organizational performance experienced when boards have moderate informational faultlines. More specifically, informational faultlines within boards are negatively related to organizational performance across the weak-to-moderate range of informational faultlines and positively related to organizational performance across the moderate-to-strong range.

Research limitations/implications

By explaining the mechanisms through which informational faultlines are related to organizational performance, the authors contribute to the literature in a number of ways. By conceptualizing how the management of knowledge plays an important role in the particular setting of corporate boards, the authors add not only to literature on knowledge management but also to the faultline and corporate governance literature.

Originality/value

This study offers a rationale for prior mixed findings by providing an alternative theoretical basis to explain the effect of informational faultlines within boards on organizational performance. To advance the field, the authors build on the concept of knowledge demonstrability to illuminate how informational faultlines affect the management of knowledge within boards, which will translate to organizational performance.

Details

Journal of Knowledge Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 18 January 2016

Niamh M. Brennan, Collette E. Kirwan and John Redmond

The purpose of this paper is to understand the influence of information and knowledge exchange and sharing between managers and non-executive directors is important in assessing…

2522

Abstract

Purpose

The purpose of this paper is to understand the influence of information and knowledge exchange and sharing between managers and non-executive directors is important in assessing the dynamic processes of accountability in boardrooms. By analysing information/knowledge at multiple levels, invoking the literature on implicit/tacit and explicit information/knowledge, the authors show that information asymmetry is a necessary condition for effective boards. The authors introduce a conceptual model of manager-non-executive director information asymmetry as an outcome of the interpretation of information/knowledge-sharing processes amongst board members. The model provides a more nuanced agenda of the management-board information asymmetry problem to enable a better understanding of the role of different types of information in practice.

Design/methodology/approach

The analysis of information/knowledge exchange, sharing and creation and the resultant conceptual model are based on the following elements: manager-non-executive director information/knowledge, management-board information/knowledge and board dynamics and reciprocal processes converting implicit/tacit into explicit information/knowledge.

Findings

The paper provides new insights into the dynamics of information/knowledge exchange, sharing and creation between managers and non-executive directors (individual level)/between management and boards (group level). The authors characterise this as a two-way process, back-and-forth between managers/executive directors and non-executive directors. The importance of relative/experienced “ignorance” of non-executive directors is revealed, which the authors term the “information asymmetry paradox”.

Research limitations/implications

The authors set out key opportunities for developing a research agenda from the model based on prior research of knowledge conversion processes and how these may be applied in a boardroom setting.

Practical implications

The model may assist directors in better understanding their roles and the division of labour between managers and non-executive directors from an information/knowledge perspective.

Originality/value

The authors apply Ikujiro Nonaka’s knowledge conversion framework to consider the transitioning from individual implicit personal to explicit shared information/knowledge, to understand the subtle processes at play in boardrooms influencing information/knowledge exchange, sharing and creation between managers and non-executive directors.

Details

Accounting, Auditing & Accountability Journal, vol. 29 no. 1
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 5 February 2018

David William Stoten, Stanley Oliver, Jim O’Brien and Callum Garland Swain

The purpose of this paper is to explore how students interact with discussion boards, given different cultural backgrounds. The paper draws from the literature on activity theory…

Abstract

Purpose

The purpose of this paper is to explore how students interact with discussion boards, given different cultural backgrounds. The paper draws from the literature on activity theory, communities of practice, as well as learning theory to inform a discussion on students use of discussion boards.

Design/methodology/approach

Students from a range of nationalities studying in London were issued with a five-point Likert scale questionnaire that was supplemented with opportunities for students to elaborate on their thoughts through the use of open response comment boxes. In addition to qualitative analysis, statistical analysis using the Kruskal-Wallis test was undertaken to investigate the degree to which national background influenced the use of discussion boards. Students were divided into four groups (British, European, Asian and African) for the purpose of analysis.

Findings

The findings tentatively echo earlier work (Hofstede) on how cultural/national factors impact on how people approach work/study. In this case, differences between African and Asian students were most apparent in a number of interesting areas.

Research limitations/implications

This study is limited by the sample size and time constraints involved. The data were drawn from 70 students. Future student intake will be added to this cohort to build up the sample and test preliminary findings.

Practical implications

This paper infers that teachers should be actively aware of how nationality/cultural background may impact on how students learn and engage with information technology during the learning process.

Originality/value

This paper contributes to the work on learning in diverse learning communities and how information technology can contribute to a learning community.

Details

Journal of Applied Research in Higher Education, vol. 10 no. 1
Type: Research Article
ISSN: 2050-7003

Keywords

Open Access
Article
Publication date: 11 May 2022

Agnieszka Slomka-Golebiowska, Sara De Masi and Andrea Paci

This study aims to examine the effects of board dynamics produced by reaching a certain proportion of women on board tasks (monitoring, strategy and advisory).

1641

Abstract

Purpose

This study aims to examine the effects of board dynamics produced by reaching a certain proportion of women on board tasks (monitoring, strategy and advisory).

Design/methodology/approach

Using a panel of 35 listed companies belonging to FTSE-MIB index, for the years 2008–2015, the hypotheses can be tested by applying random effect regressions. The introduction of gender board quota law in Italy has created a quasi-natural experiment that is applied in the study.

Findings

This research provides evidence that reaching 33% women on boards, which is the threshold mandated by the Italian gender board quota law, makes a difference for strategy tasks but not for monitoring tasks. This proportion of women on boards creates the board dynamics necessary to empower all board members, allowing the varied knowledge, skills, backgrounds and personal qualities to be leveraged and used in strategy tasks. For monitoring tasks, obtaining a proportion of 20% women on boards, as a first threshold enforced by the law, is enough to voice their opinion during board meetings and challenge management.

Originality/value

The results show that each set of board tasks requires different dynamics trigged by a specific proportion between a minority (women) and a dominant subgroup (men). To enhance monitoring tasks performance, it is enough to reach a proportion between men and women which makes the women less isolated and more inclined to speak up during the board meetings. In the case of strategy tasks, the improved performance is achieved when the dominant group enticed to hear women’s opinions and responsive to various perspectives. This paper expands the debates going beyond monitoring tasks, showing the importance of board dynamics for engagement in strategy and advisory tasks.

Details

Management Research Review, vol. 46 no. 3
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 8 July 2014

Martin J. Eppler and Roland Andreas Pfister

This paper aims to study hybrid knowledge visualization in police crime fighting and military operations. Making effective and timely use of all available, relevant knowledge is a…

1022

Abstract

Purpose

This paper aims to study hybrid knowledge visualization in police crime fighting and military operations. Making effective and timely use of all available, relevant knowledge is a major requirement for today’s police officers who strive to fight organized crime or resolve complex criminal acts under time pressure. As they share this knowledge integration challenge with many management contexts, the authors have examined the knowledge visualization practices of a leading regional police force (and of a military unit) to derive insights for corporate knowledge management.

Design/methodology/approach

To examine the knowledge visualization practices of a leading regional police force, the authors have conducted on-site observations, focus groups and interviews, as well as site, document, tool and software analyses within the police headquarters.

Findings

As one main result of their empirical investigation, the authors find that the police force’s practice of hybrid (i.e. digital and physical) knowledge visualization offers a useful strategy for corporate knowledge management as well. They also show how organizations can apply this dual approach to making knowledge visible, i.e. using sophisticated visualization software in combination with hands-on physical and permanently visible knowledge boards.

Originality/value

They discuss how these two modalities can be combined to improve knowledge management and how this hybrid practice can be understood theoretically through the lens of boundary object theory. With this regard, this article also extends the boundary object theory by identifying nine dynamic qualities of collaborative visualizations.

Details

Journal of Knowledge Management, vol. 18 no. 4
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 3 October 2016

Joel Kiplagat Tuwey and Daniel Kipkirong Tarus

The purpose of this paper is to determine how board leadership affects the board strategic involvement in private firms in Kenya and how CEO power moderates this relationship.

Abstract

Purpose

The purpose of this paper is to determine how board leadership affects the board strategic involvement in private firms in Kenya and how CEO power moderates this relationship.

Design/methodology/approach

The authors used a Kenyan data set to investigate what makes boards in private firms get involved in strategy. Survey data derived from a sample of 186 CEOs of private firms were used, and the hypotheses were tested using moderated regression analysis.

Findings

The results indicate that board members’ knowledge, board chairman’s leadership efficacy, board members’ personal motivation and board members’ background all have a positive and significant effect on board strategy involvement. The authors also found that CEO power moderates the relationship between board leadership and strategy involvement. The study concludes that when the CEO wields immense power, the board tends to become passive and to submit to the direction of the CEO.

Originality/value

The study adds value to the understanding of the effect of the board leadership on strategic involvement in private firms and how CEO power influences this relationship, particularly in a developing country like Kenya.

Details

Corporate Governance: The International Journal of Business in Society, vol. 16 no. 5
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 19 June 2020

Natalie Elms and Gavin Nicholson

The purpose of this paper is to explore why different directors feel different levels of accountability toward board tasks.

Abstract

Purpose

The purpose of this paper is to explore why different directors feel different levels of accountability toward board tasks.

Design/methodology/approach

The paper employs a reflexive three wave data and analysis process culminating in a rich data set of 49 interviews with Australian directors and 15 h of boardroom observations.

Findings

Differences in role identification lead directors to perceive their accountability differently resulting in wide variation in levels of firm specific knowledge, eventually affecting their breadth of contribution to board tasks.

Research limitations/implications

Researchers should question the application of traditional governance theory (such as agency theory) if it fails to account for individual differences in intrinsic self-interest.

Practical implications

Selecting board members for their functional knowledge alone may not always produce optimal outcomes for the board and firm. Board induction processes and ongoing director training are important tools to inform and remind directors of their role and accountabilities on a board.

Originality/value

This paper establishes that the strength of directors' identification with either the director role or expert role affects what they feel accountable for, the development of firm specific knowledge and long-term efficacy as a director.

Details

Accounting, Auditing & Accountability Journal, vol. 33 no. 8
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 12 June 2009

Rookmin Maharaj

This paper aims to use the argument that formal regulations alone may not be the defining factor in improving corporate governance and the decision making process of the BOD.

1523

Abstract

Purpose

This paper aims to use the argument that formal regulations alone may not be the defining factor in improving corporate governance and the decision making process of the BOD.

Design/methodology/approach

Based on 20 semi‐structured interviews with board chairs, members of corporate boards, CEOs, and upper/executive management at 12 Canadian companies, a bird's eye view is taken from the top. A content analysis of the interviews was performed. a clear picture about the interaction and behaviour of directors emerged. Subsequently, three objectives that are required for effective decision‐making were developed: knowledge; motivation; and transmission channels/internal control. The analysis offers three critical objectives, which all boards should endeavour to accomplish.

Findings

These interviews demystify board process and provide the bases for three critical objectives for effective corporate governance: ascertain and embellish the knowledge base of directors; motivate directors to share and gather information; and ensure clear and fluent transmission channels exist.

Practical implications

The usual board measures such as CEO duality, insider and outsider ratio, number of board members and directors' share ownership may not be the only critical determinants of board effectiveness.

Originality/value

Conventional notions of decision making have neglected key human faculties and individual characteristics that combine to determine organizational outcomes. This paper fulfils a need for research in the area of board processes and board decision making and provides a roadmap to improve corporate governance within organizations.

Details

Corporate Governance: The international journal of business in society, vol. 9 no. 3
Type: Research Article
ISSN: 1472-0701

Keywords

Open Access
Article
Publication date: 23 December 2021

Jennifer Martin, Maureen A. Flynn, Zuneera Khurshid, John J. Fitzsimons, Gemma Moore and Philip Crowley

The purpose of this study is to present a quality improvement approach titled “Picture-Understanding-Action” used in Ireland to enhance the role of healthcare boards in the…

1697

Abstract

Purpose

The purpose of this study is to present a quality improvement approach titled “Picture-Understanding-Action” used in Ireland to enhance the role of healthcare boards in the oversight of healthcare quality and its improvement.

Design/methodology/approach

The novel and practical “Picture-Understanding-Action” approach was implemented using the Model for Improvement to iteratively introduce changes across three quality improvement projects. This approach outlines the concepts and activities used at each step to support planning and implementation of processes that allow a board to effectively achieve its role in overseeing and improving quality. This approach matured over three quality improvement projects.

Findings

The “Picture” included quantitative and qualitative aspects. The quantitative “Picture” consisted of a quality dashboard/profile of board selected outcome indicators representative of the health system using statistical process control (SPC) charts to focus discussion on real signals of change. The qualitative picture was based on the experience of people who use and work in health services which “people-ised” the numbers. Probing this “Picture” with collective grounding, curiosity and expert training/facilitation developed a shared “Understanding”. This led to “Action(s)” from board members to improve the “Picture” and “Understanding” (feedback action), to ask better questions and make better decisions and recommendations to the executive (feed-forward action). The Model for Improvement, Plan-Do-Study-Act cycles and a co-design approach in design and implementation were key to success.

Originality/value

To the authors’ knowledge, this is the first time a board has undertaken a quality improvement (QI) project to enhance its own processes. It addresses a gap in research by outlining actions that boards can take to improve their oversight of quality of care.

Details

International Journal of Health Governance, vol. 27 no. 1
Type: Research Article
ISSN: 2059-4631

Keywords

Article
Publication date: 13 April 2023

Vidisha Gunesh Ramlugun and Lesley Stainbank

The aim of this study is to explore how a practice approach can provide an understanding of board diversity practices. Drawing from Schatzki's practice theory, this study…

Abstract

Purpose

The aim of this study is to explore how a practice approach can provide an understanding of board diversity practices. Drawing from Schatzki's practice theory, this study considered how board diversity is practiced from the doings and sayings of directors in Mauritius.

Design/methodology/approach

In this study, in-depth interviews with directors in listed companies from different industrial sectors were used to collect data.

Findings

The authors' findings indicate that a country's board diversity practices are influenced by the country's unique social, economic and cultural environment. Whilst board diversity practices may appear as the practices that are motivated by compliance, a deeper look at the results reveals that the laws governing board diversity are interpreted very subtly in a way that benefits shareholders' self-interest. A low percentage of female directors on boards and some indications of shareholder-driven practices are also found. Whilst the corporate sector acknowledges the advantages of diversity, there are some practices that they are unwilling to abandon, demonstrating the importance of the teleoaffective structures and normativity in determining what really occurs. Members of boards resolving disagreement further demonstrates the teleoaffective structure.

Research limitations/implications

This research would be of interest to researchers because of the research's novel approach in studying board diversity which could be used by other researchers to experiment with a practice approach in exploring corporate governance phenomena in unique settings.

Practical implications

The findings are of relevance to policymakers and regulators who seek to strengthen corporate governance practices in similar settings.

Originality/value

This research contributes to the literature on board diversity by showing that analysing board diversity through a practice approach enables a more comprehensive understanding of practices. The authors' study confirms that practice theory has the potential to re-orient the way board diversity studies are undertaken.

Details

Journal of Accounting in Emerging Economies, vol. 14 no. 2
Type: Research Article
ISSN: 2042-1168

Keywords

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