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

32 Pages Posted: 22 Feb 2008

See all articles by Pieter-Jan Bezemer

Pieter-Jan Bezemer

Queensland University of Technology - School of Management

Gregory Maassen

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

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)

Multiple version iconThere are 2 versions of this paper

Date Written: August 2007 8,

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.

JEL Classification: D21, L20

Suggested Citation

Bezemer, Pieter-Jan and Maassen, Gregory 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) (August 2007 8,). ERIM Report Series Reference No. ERS-2007-074-STR. Available at SSRN: https://ssrn.com/abstract=1096393

Pieter-Jan Bezemer (Contact Author)

Queensland University of Technology - School of Management ( email )

Brisbane, Queensland 4001
Australia

Gregory Maassen

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

P.O. Box 1738
Room T08-21
Rotterdam, 3000 DR
Netherlands

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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