Corporate linkages and organizational environment: A test of the resource dependence model

Corporate linkages and organizational environment: A test of the resource dependence model Two competing models of corporate boards are presented. Management control proposes that the board is a rubber stamp for management, and plays a minor role in strategic management, while resource dependence asserts that the board is a tool used to manage environmental uncertainty. A structural model was developed to determine whether corporate boards respond to different types of environmental uncertainty, using data on 147 companies from nine industry groups. It was found that boards tended to be smaller in a more uncertain environment, while having an increased number of interlocks. This relationship was stronger in high‐performing firms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

Corporate linkages and organizational environment: A test of the resource dependence model

Strategic Management Journal, Volume 11 (6) – Oct 1, 1990

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Publisher
Wiley
Copyright
Copyright © 1990 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/smj.4250110602
Publisher site
See Article on Publisher Site

Abstract

Two competing models of corporate boards are presented. Management control proposes that the board is a rubber stamp for management, and plays a minor role in strategic management, while resource dependence asserts that the board is a tool used to manage environmental uncertainty. A structural model was developed to determine whether corporate boards respond to different types of environmental uncertainty, using data on 147 companies from nine industry groups. It was found that boards tended to be smaller in a more uncertain environment, while having an increased number of interlocks. This relationship was stronger in high‐performing firms.

Journal

Strategic Management JournalWiley

Published: Oct 1, 1990

References

  • Models of the significance of interlocking corporate directorates
    Koenig, Koenig; Gogel, Gogel; Sonquist, Sonquist

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