Boardroom Theater: Actors, Actions and Their Consequences
Case Western Reserve University
January 1, 2012
The Second International Conference on Engaged Management Scholarship
Seventy seven percent of low corporate governance ratings for U.S. publicly-traded companies are attributable to poorly-performing boards. Responding to calls for more research on interpersonal dimensions of directors’ behaviors and their relationship to board performance, we conducted inductive research based on semi-structured interviews with directors of high and low governance-rated small and medium sized US firms. Illumination of their “lived experiences” on public company boards revealed the criticality of cultural intelligence (CQ) to govern distinct front- and back-stage board performance. Although seldom used to screen board candidates, behavioral sensitivity of directors may be higher in high governance-rated boards where less institutional control over non-conformance also occurs. The role and effect of CQ in the context of boards has not previously been discussed. Implications for practice and for future research are noted.
Number of Pages in PDF File: 27
Keywords: Board governance, agency theory, resource dependence theory, behavioral models, director characteristics, team dynamics, information asymmetry, cultural intelligence, professional capital
Date posted: June 18, 2012 ; Last revised: October 9, 2013