Investigating the Development of the Internal and External Service Tasks of Non-Executive Directors: The Case of the Netherlands (1997-2005)

11 Pages Posted: 13 Dec 2007

See all articles by Pieter-Jan Bezemer

Pieter-Jan Bezemer

Queensland University of Technology - School of Management

Gregory F. Maassen

affiliation not provided to SSRN

Frans A. J. Van Den Bosch

Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship; Erasmus Research Institute of Management (ERIM)

H. W. Volberda

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

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Abstract

During the last decade, globalization and liberalization of financial markets, changing societal expectations and corporate governance scandals have increased the attention for the fiduciary duties of non-executive directors. In this context, recent corporate governance reform initiatives have emphasized the control task and independence of non-executive directors. However, little attention has been paid to their impact on the external and internal service tasks of non-executive directors. Therefore, this paper investigates how the service tasks of non-executive directors have evolved in the Netherlands. Data on corporate governance at the top 100 listed companies in the Netherlands between 1997 and 2005 show that the emphasis on non-executive directors' external service task has shifted to their internal service task, i.e. from non-executive directors acting as boundary spanners to non-executive directors providing advice and counseling to executive directors. This shift in board responsibilities affects non-executive directors' ability to generate network benefits through board relationships and has implications for non-executive directors' functional requirements.

Suggested Citation

Bezemer, Pieter-Jan and Maassen, Gregory F. and Van Den Bosch, Frans A. J. and Volberda, Henk W., Investigating the Development of the Internal and External Service Tasks of Non-Executive Directors: The Case of the Netherlands (1997-2005). Corporate Governance: An International Review, Vol. 15, Issue 6, pp. 1119-1129, November 2007. Available at SSRN: https://ssrn.com/abstract=1072203 or http://dx.doi.org/10.1111/j.1467-8683.2007.00635.x

Pieter-Jan Bezemer (Contact Author)

Queensland University of Technology - School of Management ( email )

Brisbane, Queensland 4001
Australia

Gregory F. Maassen

affiliation not provided to SSRN

No Address Available

Frans A. J. Van Den Bosch

Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship ( email )

RSM Erasmus University
Rotterdam, 3000 DR
Netherlands
+31 10 408 1955/2005 (Phone)
+31 10 453 0137 (Fax)

HOME PAGE: http://www.rsm.nl/fvandenbosch

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Henk W. Volberda

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands
+31 10 408 2761 (Phone)
+31 10 408 9013 (Fax)

HOME PAGE: http://www.eur.nl/fbk/dep/dep4/faculty_members/Henk_Volberda

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

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