Driving Strategy or Just Going through the Motions: An Empirical Study of Boardrooms in the UK

Sharon Kemp

International Journal of Business Administration, 2010, vol. 1, issue 1, 2-18

Abstract: The level of interest regarding corporate board, their role and the contribution they make to organisation¡¯s performance and success has increased in the many global settings. There is however, a gap in our knowledge about what board members do. In order to have a better understanding of boards, we need to know more about the behaviour of those who sit on boards. Many chairmen and all non-executive directors serve on corporate boards in a part-time capacity; however, such part-time service does not negate a role in strategy. The purpose of this paper is to ask how, if at all, do part-time board members influence strategy in UK companies? Data from interviews with 30 board members are interpreted using the 1999 framework of McNulty and Pettigrew which conceptualises part-time board members¡¯ involvement in strategy as ¡°taking strategic decisions¡±, ¡°shaping strategic decisions¡± and shaping the content, context and conduct of strategy¡±. Part-time board members are able to shape both the ideas that form the content of corporation¡¯s strategies and the methodologies and processes by which those ideas evolve. In so doing, part-time board members are capable of exerting control over management and influencing processes of strategic choice and change. Boards of directors have a role in strategy formulation, strategic decision-making and strategic control.

Keywords: Boards of directors; Management strategy; Strategic choice (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijba11:v:1:y:2010:i:1:p:2-18

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