Sadi Boğaç Kanadlı, Pingying Zhang and Nada K. Kakabadse
Board diversity has been a hotly debated topic in the field of corporate governance. The paper examines the role of board chairperson and its moderating effect on the relationship…
Abstract
Purpose
Board diversity has been a hotly debated topic in the field of corporate governance. The paper examines the role of board chairperson and its moderating effect on the relationship between job-related diversity and boards’ strategic tasks performance. The purpose of this paper is to add on our body of knowledge about the impact of job-related diversity on boards’ strategic tasks performance.
Design/methodology/approach
The paper applies the structural equation modeling (SEM) technique to examine survey responses from chief executive officers (CEOs). Both the measurement model and structural model have obtained good results, supporting the appropriateness of using the SEM approach.
Findings
The findings suggest that there is a positive association between job-related diversity and boards’ strategic tasks performance, which is moderated by a chairperson’s leadership efficacy and the option of a former-CEO as board chair.
Practical implications
To achieve the intended effect of job-related diversity in boards, policymakers need to be mindful about the importance of the board chairperson. Board chairperson’s characteristics such as leadership efficacy and a former-CEO experience would amplify the positive effect of diversity.
Originality/value
This research paper contributes to the literature on board diversity, board leadership and strategic management of firms. Findings validated researchers’ concern about the negligence of examining moderating factors in board diversity research. Moreover, results echo the concern that board leadership research should shift the attention from structural aspects to the behavioral issues. Finally, this study is the first to show the positive influence of a board chairperson in disseminating benefits of a diverse board.
Details
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Sadi Boğaç Kanadlı, Asma Alawadi, Nada Kakabadse and Pingying Zhang
Using the attention-based view, this paper aims to examine whether and how board composition might influence the allocation of board attention to corporate sustainability.
Abstract
Purpose
Using the attention-based view, this paper aims to examine whether and how board composition might influence the allocation of board attention to corporate sustainability.
Design/methodology/approach
This is a conceptual paper that uses a theoretical perspective pointing to the importance of generating a board composition that might benefit both business case framing and paradoxical framing, a typology introduced in managerial cognition literature to explain managerial decision-making.
Findings
The conclusions emerging from the reviewed literature suggest that boards that have realized an independence of perspective focus on shareholder profit maximization at the expense of considerations of corporate sustainability. It emerges that women directors who have adopted paradoxical framing can enable boards to consider not only economic but also environmental and social issues of sustainability during board decision-making. Further, it is noted that the effect of gender diversity on allocation of board attention to corporate sustainability is contingent upon contextual (board openness) and structural (chairperson leadership) factors that facilitate social interactions inside boardrooms.
Originality/value
By considering alternative cognitive frames as well as social interactions, the propositions contribute to a better understanding of the allocation of board attention regarding ambiguous sustainability issues.