Beyond Facts and Figures: The Role of Emotions in Boardroom Dynamics

Ethel Brundin () and Mattias Nordqvist

Corporate Governance: An International Review, 2008, vol. 16, issue 4, 326-341

Abstract: Manuscript Type: Empirical Research Question/Issue: We address the call for qualitative research in order to better understand the micro‐level dynamics of board work. Our aim is to investigate the role of emotions when board members interact to perform the board's control and service tasks. Research Findings/Results: Empirical accounts from board meetings and diary notes from a CEO show in detail how emotions work as power energizers and status energizers in boardroom dynamics. We find that short‐term as well as long‐term emotions are a source of energy that affects board work, and that they are influential in the board members' task performance. Theoretical Implications: We provide process insights with process insights to a field dominated by studies of the structures of corporate governance. We disclose the difference between board expectations and board performance, and offer a new understanding as to how and why this difference emerges. Our results also challenge theories that propose that authenticity of emotional displays is necessary in order to achieve a positive outcome in boardroom interactions. The findings also show that confrontation of negative emotions in boardroom communication may alter the power and status relations among board members. Practical Implications: Our study shows that the board members who influence processes in the board are those whose emotional energies are built up and transformed as power and status energizers in line with board task expectations. Being aware, and able to understand the subtle working of emotions in board processes are crucial for being an effective board member.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:bla:corgov:v:16:y:2008:i:4:p:326-341

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