Exploring the Political Side of Board Involvement in Strategy: A Study of Mixed-Ownership Institutions

32 Pages Posted: 7 Dec 2006

See all articles by Davide Ravasi

Davide Ravasi

SDA Bocconi; Bocconi University - Department of Management and Technology

Alessandro Zattoni

University of Bocconi - Strategic and Entrepreneurial Management

Abstract

This article reports on a comparative study of strategic decision-making and board functioning in nine firms. Findings indicate that the heterogeneity of interests represented on the board, members' possession of relevant knowledge, and the presence of ex-ante conflict resolution mechanisms combine in shaping if and how board members engage in strategy-related activities and how strategic decisions are taken. Findings extend current understandings about the strategic functions of the board (monitoring, advice, and resource-dependence), suggesting how, under certain conditions, boards may act as negotiation forums where directors search for a reconciliation between diverging shareholders' interests and views.

Suggested Citation

Ravasi, Davide and Zattoni, Alessandro, Exploring the Political Side of Board Involvement in Strategy: A Study of Mixed-Ownership Institutions. Journal of Management Studies, Vol. 43, No. 8, pp. 1671-1702, December 2006, Available at SSRN: https://ssrn.com/abstract=950075 or http://dx.doi.org/10.1111/j.1467-6486.2006.00659.x

Davide Ravasi (Contact Author)

SDA Bocconi ( email )

Via Bocconi 8
Milan, Milan 20136
Italy

Bocconi University - Department of Management and Technology ( email )

Via Roentgen 1
Milan, MI 20136
Italy

Alessandro Zattoni

University of Bocconi - Strategic and Entrepreneurial Management ( email )

Via Bocconi 8
Milan, Milan 20136
Italy

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