The decision-making process in boardrooms has a significant impact on organizational performance. In the last two decades, scientific research on the decision-making process in boardrooms has increased. This resulted in a substantial body of knowledge about boardroom factors and their relation to organizational performance. However, the effectiveness of the decision-making process in boardrooms is still mainly a black box. Amongst other things, scientific findings seem to contradict each other, which could mean additional insights are still missing. This research aims to contribute to a better understanding of this black box.
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Triggered by highly publicised corporate scandals, changing societal expectations and the collapse of financial markets, the roles of boards of directors have changed significantly in safeguarding the interest of shareholders and other stakeholders. Yet, relatively little is known about contemporary challenges non–executive directors face and whether their boards are well–equipped for their new tasks. Based on self–assessment reports by supervisory boards, a survey and interviews with supervisory board members, this paper investigates the challenges non–executive directors face in the Netherlands, particularly after a decade of corporate governance reform. Non–executive directors' inadequate role in scrutinising executive directors' performance, information asymmetries and dysfunctional working relationships between executive and non–executive directors are among the greatest challenges indicated by non–executive directors on Dutch supervisory boards. The paper discusses several implications for scholars and practitioners and provides a unique insight in boardroom dynamics.
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Anno 2012 voelt de RvC2 de invloed van internationalisering, meer wet- en regelgeving, de recessie, verscherpt extern toezicht en kritiek van onder meer media en stakeholders, aangemoedigd door de steeds vaker openlijk besproken schandalen (Peij, Bezemer, & Maassen, 2012). Daarnaast dient zich nadrukkelijk het one-tier board model als alternatief voor het in Nederland bekende two-tier model aan (Peij, 2010, p. 38). Deze ontwikkelingen maken de rol van de commissaris meer complex en uitdagend. Hoe kan de RvC in deze omstandigheden voldoende effectief worden of blijven? In de visie van de onderzoekers door inzicht te krijgen in de problemen die de RvC ervaart en in de oorzaken en mogelijke oplossingen die daarbij horen.
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The aim of this paper is to investigate the Chinese branding landscape. First, the strongest Chinese brands are analysed. This analysis offers explanations for typical Chinese brand strategy and establishes current trends in Chinese brand management practice from a corporate perspective. The research includes an empirical study on the motivations of Chinese consumers investigating their preferences of Chinese- over foreign brands. While the discipline of brand management has a relatively short tradition in Chinese boardrooms, the outcomes of Chinese consumer preferences towards their favorite brands are both revealing and unexpected. The paper will conclude with the formulation of four Chinese branding trends that are likely to shape the Chinese branding landscape in the future.
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Understanding the decision-making process of a boardroom is one of the most fascinating parts of organizational research. We are all interested in power games, team dynamics and how the external environment could influence the decision of directors. One of the important buzzwords of today is “good governance” and many boards face a lot of societal pressure to implement best practices of governance. It goes beyond regulatory requirements and boards need to take a different perspective on integrating governance codes and best practices in their organizations. In this study, we focused on the role of individual directors in developing organizational responses to that pressure. More specifically, we looked at how directors’ own cognitive frames of governance influence the way boards choose best practices.
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Ever since the introduction of an ‘IT productivity paradox’ by Robert Solow, the business value of information technology (IT) has been the topic of many debates by practitioners as well as by academics. In these discussions a distinction can be made between the variance approach, investigating what the relationship between IT investments and organisational performance is, and the process approach, investigating on how this relationship works. Following the process approach, this paper describes a useful framework for assessing the organisational impact of IT. Secondly the paper considers the relation between IT impact and organisational performance and reviews the IT investment evaluation methods. The paper concludes with a proposal for a multivariable value assessment sheet, based on insights derived from the balanced scorecard theory.
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Purpose – This study seeks to explore how non-executive directors address governance problems on Dutch two-tier boards. Within this board model, challenges might be particularly difficult to address due to the formal separation of management boards' decision-management from supervisory boards' decision-control roles. Design/methodology/approach – Semi-structured interviews and a questionnaire among non-executive directors provide unique insights into three major challenges in the boardrooms of two-tier boards in The Netherlands. Findings – The study indicates that non-executive directors mainly experience challenges in three areas: the ability to ask management critical questions, information asymmetries between the management and supervisory boards and the management of the relationship between individual executive and non-executive directors. The qualitative in-depth analysis reveals the complexity of the contributing factors to problems in the boardroom and the range of process and social interventions non-executive directors use to address boardroom issues with management and the organization of the board. Practical implications – While policy makers have been largely occupied with the “right” board composition, the results highlight the importance of adequately addressing operational challenges in the boardroom. The results emphasize the importance of a better understanding of board processes and the need of non-executive directors to carefully manage relationships in and around the boardroom. Originality/value – Whereas most studies have focussed on regulatory initiatives to improve the functioning of boards (e.g. the independence of the board), this study explores how non-executive directors attempt to enhance the effectiveness of boards on which they serve.
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This study explores how non-executive directors are challenged by management while they seek to improve the effectiveness of supervisory boards in the Netherlands. A combination of semi-structured interviews and a questionnaire among non-executive directors indicates that supervisory board members mainly experience boardroom challenges in three core areas: the ability of non-executive directors to ask management critical questions, information asymmetries between the management and supervisory boards and the management of the relationship between individual executive and non-executive directors. The qualitative in-depth analysis reveals the complexity of the main contributing factors to problems in the boardroom as well as the range of process and social interventions non-executive directors use to address boardroom issues. The findings highlight the need to better understand boardroom processes and the need of non-executive directors to carefully manage relationships in and around the boardroom.
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Op 1 januari 2013 wordt de Wet Bestuur en Toezicht naar verwachting van kracht1. Na invoering van deze wet kunnen bedrijven gemakkelijker kiezen uit de one-tier board en de two-tier board als bestuursmodel. Shell heeft in 2005 het one-tier model ingevoerd en kan dus al de eerste balans opmaken. Ervaringen bij Shell en lessen voor bedrijven die volgen.
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