How do board-CEO relationships influence the performance of new product introduction? Moving from single to interdependent explanations

Corporate Governance: An International Review

Volumn 16, Issue 2, 2008, Pages 77-89

  Wu, Hsueh Liang ^a  

^a NATIONAL TAIWAN UNIVERSITY   (Taiwan)

Author keywords

Agency theory; Board processes; CEOs; Corporate innovation; Resource dependence theory; Taiwan

Indexed keywords

EID: 44449167589     PISSN: 09648410     EISSN: 14678683     Source Type: Journal    
DOI: 10.1111/j.1467-8683.2008.00670.x     Document Type: Article

References (106)

1. Anderson, R. C. Reeb, D. M. (2003) Founding-family ownership and firm performance: Evidence from the S&P 500, Journal of Finance, 58 : 1301 1327.
2. Anderson, S. E. Williams, L. J. (1996) Interpersonal, job, and individual factors related to helping processes at work, Journal of Applied Psychology, 8 : 282 296.
3. Autio, E., Sapienza, H. J. Almeida, J. G. (2000) Effects of age of entry, knowledge intensity, and imitability on international growth, Academy of Management Journal, 43 : 909 924.
4. Baliga, B. R., Moyer, C. Rao, R. S. (1996) CEO duality and firm performance: What's the fuss? Strategic Management Journal, 17 : 41 53.
5. Balkin, D. B., Markman, G. D. Gomez-Mejia, L. R. (2000) Is CEO pay in high-technology firms related to innovation? Academy of Management Journal, 43 : 1118 1129.
6. Barringer, B. R. Bluedorn, A. C. (1999) The relationship between corporate entrepreneurship and strategic management, Strategic Management Journal, 20 : 421 444.
7. Bauer, T. N. Green, S. G. (1996) Development of leader-member exchange: A longitudinal test, Academy of Management Journal, 39 : 1538 1567.
8. Boeker, W. Goodstein, J. (1993) Performance and successor choice: The moderating effects of governance and ownership, Academy of Management Journal, 36 : 172 186.
9. Bourgeois, L. J. (1980) Strategy and environment: A conceptual integration, Academy of Management Review, 5 : 25 29.
10. Bourgeois, L. J., III. Eisenhardt, K. M. (1988) Strategic decision processes in high velocity environments: Four cases in the microcomputer industry, Management Science, 34 : 816 835.
11. Brass, D. J. (1984) Being in the right place: A structural analysis of individual influence in an organization, Administrative Science Quarterly, 29 : 518 539.
12. Carpenter, M. A. Westphal, J. D. (2001) The strategic context of external network ties: Examining the impact of director appointments on board involvement in strategic decision making, Academy of Management Journal, 44 : 639 660.
13. Cohen, J. Cohen, P. (1983) Applied Multiple Regression Correlation Analysis for the Behavioral Science (2nd edn Erlbaum, Hillsdale, NJ.
14. Daft, R. L., Sormunen, J. Parks, D. (1988) Chief executive scanning, environmental characteristics, and company performance: An empirical study, Strategic Management Journal, 9 : 123 139.
15. Daily, C. Dalton, D. (1994) Bankruptcy and corporate governance: The impact of board composition and structure, Academy of Management Journal, 37 : 1603 1617.
16. Daily, C., Dalton, D. Rajagopalan, N. (2003) Governance through ownership: Centuries of practice, decades of research, Academy of Management Journal, 46 : 151 158.
17. Dalton, D., Daily, C., Ellstrand, A. Johnson, J. (1998) Meta-analytic review of board composition, leadership structure, and financial performance, Strategic Management Journal, 19 : 269 290.
18. Damanpour, F. (1991) Organizational innovation: A meta-analysis of effects of determinants and moderators, Academy of Management Journal, 34 : 555 590.
19. Dean, J. W. Shareman, M. P. (1996) Does decision process matter? A study of strategic decision-making effectiveness, Academy of Management Journal, 39 : 368 392.
20. Demb, A. Neubauer, F. F. (1992) The Corporate Board: Confronting the Paradox, Oxford University Press, NY.
21. Denis, D. J., Denis, D. Sarin, A. (1997) Agency problems, equity ownership, and corporate diversification, Journal of Finance, 52 : 135 160.
22. Dess, G. G. Beard, D. W. (1984) Dimensions of organizational task environments, Administrative Science Quarterly, 29 : 52 73.
23. DiMaggio, P. Powell, W. (1983) The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields, American Sociological Review, 48 : 147 160.
24. Duncan, R. B. (1972) Characteristics of organizational environments and perceived environmental uncertainty, Administrative Science Quarterly, 17 : 313 327.
25. Fama, E. F. Jensen, M. C. (1983) Separation of ownership and control, Journal of Law and Economics, 26 : 301 325.
26. Fiegener, M. K. (2005) Determinants of board participation in the strategic decisions of small corporations, Entrepreneurship : Theory and Practice, 9 : 627 650.
27. Finkelstein, S. Hambrick, D. (1996) Strategic Leadership: Top Executives and their Effects on Organizations, West Publishing, St Paul, MN.
28. Finkelstein, S. Mooney, A. C. (2003) Not the usual suspects: How to use board process to make boards better, Academy of Management Executive, 17 : 101 113.
29. Forbes, D. P. Milliken, F. J. (1999) Cognition and corporate governance: Understanding boards of directors as strategic decision-making groups, Academy of Management Review, 24 : 489 505.
30. Fredrickson, J. W., Hambrick, D. C. Baumrin, S. (1988) A model of CEO dismissal, Academy of Management Review, 13 : 255 270.
31. Garnsey, E. Roberts, J. (1996) Taking Charge: What Makes CEO Succession Work? Saxton Bampfylde International, London.
32. Gomez-Mejia, L. R. Larraza-Kintana, M. Makri, M. (2003) The determinants of executive compensation in family-controlled public corporations, Academy of Management Journal, 46 : 226 237.
33. Granovetter, M. (1973) The strength of weak ties, American Journal of Sociology, 78 : 1360 1380.
34. Granovetter, M. (1985) Economic action and social structure: A theory of embeddedness, American Journal of Sociology, 91 : 481 510.
35. Hackman, R. J. (2003) Learning more about crossing levels: Evidence from airplanes, hospitals, and orchestras, Journal of Organizational Behavior, 24 : 905 922.
36. Hambrick, D. C. Abrahamson, E. (1995) Assessing managerial discretion across industries: A multimethod approach, Academy of Management Journal, 38 : 1427 1441.
37. Hambrick, D. C. Finkelstein, S. (1995) The effects of ownership structure on conditions at the top: The case of CEO pay, Strategic Management Journal, 16 : 175 193.
38. Hambrick, D. C. Mason, P. (1984) Upper echelons: The organization as a reflection of its top managers, Academy of Management Review, 9 : 193 206.
39. Haunschild, P. (1993) Interorganizational imitation: The impact of interlocks on corporate acquisition activity, Administrative Science Quarterly, 38 : 564 592.
40. Hill, C. W. Snell, S. A. (1989) Effects of ownership and control on corporate productivity, Academy of Management Journal, 32 : 25 46.
41. Hillman, A. J. Dalziel, T. (2003) Boards of directors and firm performance: Integrating agency and resource dependence perspectives, Academy of Management Review, 28 : 383 396.
42. Jarley, P., Fiorito, J. Delaney, J. T. (1997) A structural contingency approach to bureaucracy and democracy in U.S. national unions, Academy of Management Journal, 40 : 831 861.
43. Jensen, M. C. Meckling, W. H. (1976) Theory of the firm: Managerial behavior, agency costs, and ownership structure, Journal of Financial Economics, 3 : 305 360.
44. Johnson, J., Daily, C. Ellstrand, A. (1996) Boards of directors: A review and research agenda, Journal of Management, 22 : 409 438.
45. Johnson, R. A., Hoskisson, R. E. Hitt, M. A. (1993) Board of director involvement in restructuring: The effects of board versus managerial controls and characteristics, Strategic Management Journal, 14 : 33 50.
46. Judge, Jr., W. Q. Zeithaml, C. P. (1992) Institutional and strategic choice perspectives on board involvement in the strategic decision process, Academy of Management Journal, 35 : 766 794.
47. Kang, H., Cheng, M. Gray, S. J. (2007) Corporate governance and board composition: Diversity and independence of Australian boards, Corporate Governance: An International Review, 15 : 194 207.
48. Katila, R. (2002) New product search over time: Past ideas in their prime? Academy of Management Journal, 45 : 995 1010.
49. Keats, B. W. Hitt, M. A. (1988) A causal model of linkages among environmental dimensions, macro organizational characteristics, and performance, Academy of Management Journal, 31 : 570 598.
50. Keenan, J. Aggestam, M. (2001) Corporate governance and intellectual capital: Some conceptualisations, Corporate Governance: An International Review, 9 : 259 275.
51. Kets de Vries, M. F. (1991) Whatever happened to the philosopher-king? The leaders addiction to power, Journal of Management Studies, 28 : 339 352.
52. Kimberly, J. Zajac, E. (1988) The dynamics of CEO board relationships. In : Hambrick, D. (ed The Executive Effect: Concepts and Methods for Studying Top Managers. Korn Ferry International, NY.
53. Knoke, D. (1990) Organizing for Collective Action: The Political Economies of Associations, De Gruyter, NY.
54. Larson, A. (1992) Network dyads in entrepreneurial settings: A study of the governance of exchange relationships, Administrative Science Quarterly, 37 : 76 104.
55. Leenders, R. Gabbay, S. M. (1999) Corporate Social Capital and Liability, Kluwer, Boston.
56. Lewis, M. W. (2000) Exploring paradox: Toward a more comprehensive guide, Academy of Management Review, 25 : 760 776.
57. Li, H. Atuahene-Gima, K. (2002) The adoption of agency business activity, product innovation and performance in Chinese technology ventures, Strategic Management Journal, 23 : 469 490.
58. Li, M. Simerly, R. L. (1998) The moderating effect of environmental dynamism on the ownership and performance relationship, Strategic Management Journal, 19 : 169 179.
59. Lorsch, J. W. (1996) The board as a change agent, The Corporate Board, July/August, 1 7.
60. Lynall, M. D., Golden, B. R. Hillman, A. J. (2003) Board composition from adolescence to maturity: A multitheoretic view, Academy of Management Review, 28 : 416 431.
61. Maitlis, S. (2005) The social processes of organizational sensemaking, Academy of Management Journal, 48 : 21 49.
62. Mallette, P. Fowler, K. (1992) Effects of board composition and stock ownership on the adoption of poison pills, Academy of Management Journal, 35 : 1010 1035.
63. March, J. G. (1991) Exploration and exploitation in organizational learning, Organization Science, 2 : 71 87.
64. McNulty, T. Pettigrew, A. (1999) Strategists on the board, Organization Studies, 20 : 47 74.
65. Meyer, J. W. Rowan, B. (1977) Institutionalized organizations: Formal structure as myth and ceremony, American Journal of Sociology, 83 : 340 363.
66. Meznar, M. B. Nigh, D. (1995) Buffer or bridge? Environmental and organizational determinants of public affairs activities in American firms, Academy of Management Journal, 38 : 975 996.
67. Mizruchi, M. (1996) What do interlocks do? An analysis, critique, and assessment of research on interlocking directorates, In : Hagan, J. Cook, K. (eds) Annual Review of Sociology, 22 : 271 298. Annual Reviews, Palo Alto, CA.
68. Mizruchi, M. S. Stearns, L. B. (1988) A longitudinal study of the formation of interlocking directorates, Administrative Science Quarterly, 33 : 194 210.
69. Montgomery, C. A. Kaufman, R. (2003) The boards missing link, Harvard Business Review, 81 : 86 93.
70. Nadler, D. A. (2004) Building better boards, Harvard Business Review, 82 : 102 111.
71. Ornstein, M. D. (1980) Assessing the meaning of corporate interlocks: Canadian evidence, Social Science Research, 9 : 287 306.
72. Palmer, D., Jennings, P. Zhou, X. (1993) Late adoption of the multidivisional form by large U.S. corporations: Institutional, political, and economic accounts, Administrative Science Quarterly, 38 : 100 131.
73. Perry-Smith, J. E. (2006) Social yet creative: The role of social relationships in facilitating individual creativity, Academy of Management Journal, 49 : 85 101.
74. Pettigrew, A. McNulty, T. (1995) Power and influence in and around the boardroom, Human Relations, 48 : 845 873.
75. Pfeffer, J. Salancik, G. (1978) The External Control of Organizations: A Resource Dependence Perspective, Harper & Row, NY.
76. Podsakoff, P. Organ, D. (1986) Self-reports in organizational research: Problems and prospects, Journal of Management, 12 : 531 544.
77. Prescott, J. E. (1986) Environments as moderators of the relationship between strategy and performance, Academy of Management Journal, 29 : 329 346.
78. Rajagopalan, N. Prescott, J. E. (1990) Determinants of top management compensation: Explaining the impact of economic, behavioral and strategic constructs and the moderating effects of industry, Journal of Management, 16 : 515 538.
79. Rechner, P. K. Dalton, D. R. (1991) CEO duality and organizational performance: A longitudinal analysis, Strategic Management Journal, 12 : 155 160.
80. Roberts, J. (2002) Building the complementary board: The work of the Plc chairman, Long Range Planning, 35 : 493 520.
81. Roberts, J. Stiles, P. (1999) The relationship between chairmen and chief executives: Competitive or complementary roles, Long Range Planning, 32 : 36 48.
82. Rosen, S. (1983) Perceived inadequacy and help-seeking, In : DePaulo, B., Nadler, A. Fisher, J. (eds) New Directions in Helping, 2 : 3 12. Academic Press, NY.
83. Sadler-Smith, E. (2004) Cognitive style and the management of small and medium-sized enterprises, Organization Studies, 25 : 155 181.
84. Sharfman, M. P. Dean, J. W. (1991) Conceptualizing and measuring the organizational environment: A multidimensional approach, Journal of Management, 17 : 681 700.
85. Shimizu, K. Hitt, M. A. (2004) Strategic flexibility: Organizational preparedness to reverse ineffective strategic decisions, Academy of Management Executive, 18 : 44 59.
86. Shleifer, A. Vishny, R. W. (1997) A survey of corporate governance, Journal of Finance, 52 : 737 783.
87. Schulze, W. S., Lubatkin, M. H., Dino, R. N. Buchholtz, A. K. (2001) Agency relationships in family firms: Theory and evidence, Organization Science, 12 : 99 116.
88. Schulze, W. S., Lubatkin, M. H. Dino, R. N. (2003) Exploring the agency consequences of ownership dispersion among the directors of private family firms, Academy of Management Journal, 6 : 179 194.
89. Siegel, S. Castellan, N. J. (1988) Nonparametric Statistics for the Behavioral Sciences (2nd edn McGraw-Hill, NY.
90. Solomon, J. F., Lin, S. W., Norton, S. D. Solomon, A. (2003) Corporate governance in Taiwan: Empirical evidence from Taiwanese company directors, Corporate Governance: An International Review, 11 : 235 248.
91. Stewart, R. (1991) Chairman and chief executives: An explanation of their relationship, Journal of Management Studies, 28 : 511 527.
92. Strebel, P. (2004) The case for contingent governance, Sloan Management Review, 45 : 58 66.
93. Sundaramurthy, C. (2000) Antitakeover provisions and shareholder value implications: A review and a contingency framework, Journal of Management, 26 : 1005 1030.
94. Sundaramurthy, C. Lewis, M. (2003) Control and collaboration: Paradoxes of governance, Academy of Management Review, 28 : 397 415.
95. Sutcliffe, K. M. (1994) What executives notice: Accurate perceptions in top management teams, Academy of Management Journal, 37 : 1360 1378.
96. Useem, M. (1982) Classwide rationality in the politics of managers and directors of large corporations in the United States and Great Britain, Administrative Science Quarterly, 27 : 199 226.
97. Wade, J., O'Reilly, C. A. Chandratat, I. (1990) Golden parachutes: CEOs and the exercise of social influence, Administrative Science Quarterly, 35 : 587 603.
98. Walsh, J. P. Seward, J. K. (1990) On the efficiency of internal and external corporate control mechanisms, Academy of Management Review, 15 : 421 458.
99. Wernerfelt, B. (1984) A resource-based view of the firm, Strategic Management Journal, 5 : 171 180.
100. Westphal, J. (1998) Board games: How CEOs adapt to increases in structural board independence from management, Administrative Science Quarterly, 43 : 511 537.
101. Westphal, J. (1999) Collaboration in the boardroom: Behavioral and performance consequences of CEO-board social ties, Academy of Management Journal, 42 : 7 24.
102. Westphal, J. Zajac, E. (1997) Defections from the inner circle: Social exchange, reciprocity, and the diffusion of board independence in U.S. corporations, Administrative Science Quarterly, 42 : 161 183.
103. Wiersema, M. F. Bantel, K. A. (1993) Top management team turnover as an adaptation mechanism: The role of the environment, Strategic Management Journal, 14 : 485 504.
104. Wiseman, R. Gomez-Mejia, L. R. (1998) A behavioral agency model of risk taking, Academy of Management Review, 23 : 133 153.
105. Zaheer, A. Bell, G. G. (2005) Benefiting from network position: Firm capabilities, structural holes, and performance, Strategic Management Journal, 26 : 809 825.
106. Zajac, E. Westphal, J. (1996) Director reputation CEO-board power, and the dynamics of board interlocks, Administrative Science Quarterly, 41 : 507 529.