An Observational Analysis of the Impact of Board Dynamics and Directors' Participation on Perceived Board Effectiveness

25 Pages Posted: 16 Jan 2015

See all articles by Amedeo Pugliese

Amedeo Pugliese

University of Padova - Department of Economics and Management; QUT Business School

Pieter-Jan Bezemer

Queensland University of Technology - School of Management

Date Written: January 2015

Abstract

This study addresses calls for closer examination of board dynamics by offering an inside view of director interactions. Video observations of three board meetings at each of two Australian corporations matched with director interviews and secondary data reveal distinct patterns of director interactions, their sources of variation and their impact on perceived board effectiveness. The data reveal that director interactions are multidimensional and dynamic: while group interactions across agenda items are similar, with a few directors leading the discussion, the contributing directors change across items. Moreover, directors' inclusiveness and evenness of participation are associated with higher perceptions of board effectiveness. Lastly, the study found that director interactions change with the nature of the items, board climate and board meeting arrangements. The study contributes to the literature by moving beyond the individualā€level analysis of directors' skills or independence, and offering a detailed view of how the joint group and individual dimensions of board dynamics affect board functioning.

Suggested Citation

Pugliese, Amedeo and Bezemer, Pieter-Jan, An Observational Analysis of the Impact of Board Dynamics and Directors' Participation on Perceived Board Effectiveness (January 2015). British Journal of Management, Vol. 26, Issue 1, pp. 1-25, 2015. Available at SSRN: https://ssrn.com/abstract=2550483 or http://dx.doi.org/10.1111/1467-8551.12074

Amedeo Pugliese (Contact Author)

University of Padova - Department of Economics and Management ( email )

Via del Santo, 33
Padova, 35123
Italy

QUT Business School ( email )

2 George Street
Brisbane, Queensland 4000
Australia

Pieter-Jan Bezemer

Queensland University of Technology - School of Management ( email )

Brisbane, Queensland 4001
Australia

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