The Effects of Directors’ Exploratory, Transformative and Exploitative Learning on Boards’ Strategic Involvement: An Absorptive Capacity Perspective

16 Pages Posted: 19 May 2020

See all articles by Aud Schønning

Aud Schønning

affiliation not provided to SSRN

Axel Walther

University of Witten/Herdecke

Silke Machold

University of Wolverhampton

Morten Huse

Norwegian School of Management (BI) - Department of Innovation and Economics; MH Management Consultants; University of Witten/Herdecke; BI Norwegian Business School

Date Written: Autumn (Fall) 2019

Abstract

While directors' knowledge represents a crucial resource for strategizing on boards, little is known how knowledge of individual directors becomes deployed behind the doors of the boardroom. Drawing on the concept of absorptive capacity, we develop a model that explores how directors' explorative, transformative and exploitative learning affects boards’ strategic involvement. Using large‐scale survey data, our findings indicate that learning helps to explain how directors' knowledge leads to higher levels of strategic involvement. Moreover, we find that learning processes mutually reinforce each other and have complementary effects on boards' strategic involvement. Our study contributes to the board and absorptive capacity literatures by demonstrating that learning processes are interconnected with each other and represent an intermediate way to put directors' knowledge into effective use.

Suggested Citation

Schønning, Aud and Walther, Axel and Machold, Silke and Huse, Morten, The Effects of Directors’ Exploratory, Transformative and Exploitative Learning on Boards’ Strategic Involvement: An Absorptive Capacity Perspective (Autumn (Fall) 2019). European Management Review, Vol. 16, Issue 3, pp. 683-698, 2019, Available at SSRN: https://ssrn.com/abstract=3599365 or http://dx.doi.org/10.1111/emre.12186

Aud Schønning (Contact Author)

affiliation not provided to SSRN

No Address Available

Axel Walther

University of Witten/Herdecke

Alfred-Herrhausen-Straße 50
Witten, 58448
Germany

Silke Machold

University of Wolverhampton

Morten Huse

Norwegian School of Management (BI) - Department of Innovation and Economics ( email )

P.O. Box 580
N-1302 Sandvika
Norway

MH Management Consultants ( email )

Butterudveien 32
N 1339 Vøyenenga
Vøyenenga
Norway

HOME PAGE: http://www.boardsandwine.net

University of Witten/Herdecke ( email )

Alfred-Herrhausen-Straße 50
Witten, 58448
Germany

BI Norwegian Business School ( email )

Nydalsveien 37
Oslo, 0442
Norway

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