The role of the board in firm strategy: Integrating agency and organisational control perspectives

Hendry, Kevin and Kiel, Geoffrey C. (2004). The role of the board in firm strategy: Integrating agency and organisational control perspectives. In: , , (500-520). .

Author Hendry, Kevin
Kiel, Geoffrey C.
Title of paper The role of the board in firm strategy: Integrating agency and organisational control perspectives
Journal name Corporate Governance: An International Review   Check publisher's open access policy
Publisher Blackwell Publishing Ltd
Publication Year 2004
Sub-type Fully published paper
Open Access Status Not yet assessed
ISSN 0964-8410
Volume 12
Issue 4
Start page 500
End page 520
Total pages 21
Language eng
Abstract/Summary The role of the board of directors in firm strategy has long been the subject of debate. However, research efforts have suffered from several deficiencies: the lack of an overarching theoretical perspective, reliance on proxies for the strategy role rather than a direct measure of it and the lack of quantitative data linking this role to firm financial performance. We propose a new theoretical perspective to explain the board's role in strategy, integrating organisational control and agency theories. We categorise a board's approach to strategy according to two constructs: strategic control and financial control. The extent to which either construct is favoured depends on contextual factors such as board power, environmental uncertainty and information asymmetry.
Subjects 1400 Business, Management and Accounting
1408 Strategy and Management
1405 Management of Technology and Innovation
Keyword Agency theory
Boards of directors
Financial control
Organisational control
Strategic control
Strategy
Q-Index Code E1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Conference Paper
Sub-type: Fully published paper
Collection: Scopus Import
 
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Created: Fri, 23 Mar 2018, 03:34:46 EST