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What does board capital really bring to the table?

What does board capital really bring to the table? Although resource dependence theory (RDT) has substantially deepened the understanding of the function and role of boards, no systematic review of this body of work has yet been undertaken. The purpose of this paper is to synthesize prior research on the strategically relevant resources provided by board members to their organization in the light of RDT and indicate avenues for future research.Design/methodology/approachThe review covers 79 research articles from 1978 to 2016 dealing with the resource provision of boards of directors.FindingsBoard capital research most often assumes a positive, linear relationship between board capital, resource provision and ultimately firm-level performance outcomes. This tendency tends to exclude from view the possibility of important trade-offs relevant to both theory and practice. Future research will need to incorporate more complex models that take into consideration nonlinear and curvilinear effects. The authors outline opportunities to advance board research by refining the methodological techniques employed.Originality/valueBy recommending investigation of the important trade-offs inherent in board composition, the authors seek to inspire future research that offers practical guidance for improving the effectiveness of corporate boards. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Journal of Business Emerald Publishing

What does board capital really bring to the table?

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1935-5181
DOI
10.1108/ajb-09-2018-0050
Publisher site
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Abstract

Although resource dependence theory (RDT) has substantially deepened the understanding of the function and role of boards, no systematic review of this body of work has yet been undertaken. The purpose of this paper is to synthesize prior research on the strategically relevant resources provided by board members to their organization in the light of RDT and indicate avenues for future research.Design/methodology/approachThe review covers 79 research articles from 1978 to 2016 dealing with the resource provision of boards of directors.FindingsBoard capital research most often assumes a positive, linear relationship between board capital, resource provision and ultimately firm-level performance outcomes. This tendency tends to exclude from view the possibility of important trade-offs relevant to both theory and practice. Future research will need to incorporate more complex models that take into consideration nonlinear and curvilinear effects. The authors outline opportunities to advance board research by refining the methodological techniques employed.Originality/valueBy recommending investigation of the important trade-offs inherent in board composition, the authors seek to inspire future research that offers practical guidance for improving the effectiveness of corporate boards.

Journal

American Journal of Business – Emerald Publishing

Published: Nov 5, 2019

Keywords: Literature review; Resource dependence theory; Boards of directors; Trade-offs; Board capital; Resource provision

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