Determinants of board directors' strategic involvement

Shaker A. Zahra and John A. Pearce

European Management Journal, 1990, vol. 8, issue 2, 164-173

Abstract: The role of boards of directors in shaping corporate strategy has increased in importance in recent years. However, evidence suggests that boards differ significantly in their involvement in the strategic arena. In this study of 139 Fortune manufacturing and service corporations we identify sources of variations in level of board strategic involvement. Boards that have a majority of insiders, whose directors possess significant expertise in the firm's major industry, and whose internal operations are efficient are more involved in the strategic process.

Date: 1990
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