Independent directors’ human and social capital, firm internationalization and performance implications: An integrated agency-resource dependence view

Chen, Hsiang‐Lan; Hsu, Wen‐Tsung; Chang, Chiao-Yi

doi:10.1016/j.ibusrev.2015.10.010

Cited by 108 publications

(80 citation statements)

References 72 publications

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“…Thus, it would be interesting to measure the moderating effect of board diversity in the EO-firm performance relationship by dividing directors into affiliates and independent ones, given that, while the formers usually have strong social ties with senior managers and know the internal business dynamics (Anderson and Reeb, 2004), the latter may add industry-and market-specific knowledge (Chen et al 2016) and can be perceived as a threat to family decision making (Jones et al 2008). It would also be useful to examine the moderating effect on the EO-firm performance link in family firms that board composition may have in terms of directors' tenure and/or the number of boards the directors are serving on simultaneously (Nekhili and Gatfaoui 2013).…”

Section: Implications Limitations and Future Researchmentioning

confidence: 99%

Entrepreneurial orientation and firm performance in family SMEs: the moderating effects of family, women, and strategic involvement in the board of directors

et al. 2017

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Entrepreneurial success in family SMEs is largely determined by the knowledge, skills, and new ideas contributed by board directors, the most important actors in the formulation of corporate strategy and decision making. The composition of family SME boards has traditionally been homogeneous, as such boards usually comprise male family members. Boards' contributions, however, depend on their level of diversity and strategic involvement. This study analyzes the moderating effects of two main sources of board diversity in family firms, family involvement level and gender diversity, as potential means of enhancing family firms' success when exploiting entrepreneurial initiatives. This study also explores whether these two potential moderators depend on the strategic involvement of the board directors. Based on a sample of 230 Spanish family firms, we found that the link between entrepreneurial orientation and performance is stronger in firms with lower levels of family involvement and higher levels of gender diversity in the board. Moreover, the board's high strategic involvement may strengthen the positive impact of gender diversity and change the moderating influence of family involvement from negative to positive.

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Section: Implications Limitations and Future Researchmentioning

confidence: 99%

Entrepreneurial orientation and firm performance in family SMEs: the moderating effects of family, women, and strategic involvement in the board of directors

et al. 2017

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“…To face the demands of internationalization, modern corporations hire FQDs on their boards to reduce the possibility of information asymmetry. This diversity of corporate boards provides corporations with a unique opportunity to expand their business and, acquire new knowledge, technology and resources for the longevity of their firm [73]. The diversification of corporate boards has dramatically changed the dynamics of corporations as a result of new ideas and new perspectives on the formulation of financial information.…”

Section: Role Of Fqds As Board Membersmentioning

confidence: 99%

Financially Qualified Members in an Upper Echelon and Their Relationship with Corporate Sustainability: Evidence from an Emerging Economy

2018

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Non-observable board diversity is an important organizational strategy for improving the long-term growth and survivability of firms. The involvement of corporate sustainability (CS) in top management teams has led to effective boards. By using agency theory, we stress how financially qualified directors (FQD) in audit committees (ACs) may positively or negatively affect the practice of earnings management (EM). We also use various theories to explain how a powerful chief executive officer (CEO) complicates the effectiveness of AC and reduces their ability to detect EM practices. Using a sample of 1020 firm-year observations representing 204 non-financial listed Pakistani firms during 2013-2017, we find that the presence of FQD on the AC is associated with lower levels of EM. Our analysis shows that this effect is driven by the level of FQDs' accounting knowledge.

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“…Independent board members can bring international knowledge to the companies, in addition to external experiences and managerial abilities that positively influence revenues and strategic orientation. Independent directors are able to reduce internationalization uncertainties, due to their industry and global experiences and expertise (Chen, Hsu, & Chang, 2016). Compared with family board members, outside directors tend to be less risk-averse and more eager to internationalize (Herrera-Echaverri, Geleilate, & Gaitan-Riaño, 2016).…”

Section: Board Diversity and International Entrepreneurshipmentioning

confidence: 99%

“…Independent board members pursue entrepreneurial objectives, without being directly involved in family issues or career progress concerns, which positively impacts internationalization efforts (Mitter, Duller, Feldbauer-Durstmüller, & Kraus, 2014;Min & Smyth, 2014). As these board members are mainly aware of their reputation in directors´ labor markets, they look for profit-maximizing strategies, playing an active role in monitoring and advising top management and family entrepreneurs in order to succeed in international endeavors (Chen et al, 2016). Independent directors face less resistance to change and can influence family entrepreneurs with growth and diversification ideas, including internationalization (Kellermanns & Eddleston, 2006).…”

Section: Board Diversity and International Entrepreneurshipmentioning

confidence: 99%

International entrepreneurship and Mexican listed family firms’ CEO/Board characteristics

Watkins-Fassler

Ariza

2019

estud.gerenc.

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The objective of this research is to analyze the influence on international entrepreneurship of both Chief Executive Officers (CEOs) and board of directors' traits. It takes into account 52 listed family firms in Mexico (2001Mexico ( -2015, an emerging market where ownership concentration is particularly high. Results obtained from a binary probit model show that family involvement reduces the odds of pursuing foreign endeavors. However, when the CEO has a business administration academic background, the probability of having subsidiaries or branches abroad rises considerably. Finally, there is evidence that the presence of women on boards reduces the odds of international entrepreneurship. Emprendimiento internacional y características de los Consejos de Administración y Directores Generales de las empresas familiares listadas en MéxicoResumen El objetivo de este trabajo es analizar la influencia tanto de características de los Directores Generales (CEO, por su sigla en inglés) como de los consejos de administración, en el emprendimiento internacional. Se contemplan 52 empresas familiares listadas en México (2001México ( -2015, un mercado emergente donde la concentración de la propiedad es particularmente alta. Los resultados obtenidos a partir de un modelo probit binario muestran que la participación de la familia reduce las probabilidades de internacionalización. No obstante, cuando el CEO tiene formación académica en negocios, la probabilidad de tener filiales o sucursales en el extranjero aumenta. Finalmente, hay evidencia que la presencia de mujeres en los consejos reduce las probabilidades de emprendimiento internacional.Palabras clave: análisis cuantitativo, emprendimiento internacional, empresa familiar, México. Empreendedorismo internacional de empresas familiares mexicanas listadas e características do CEO / Conselho de administraçãoResumo O objetivo deste trabalho é analisar a influência das características dos Gerentes Gerais (CEO) e dos conselhos de administração, no empreendedorismo internacional. Existem 52 empresas familiares listadas no México (2001México ( -2015, um mercado emergente onde a concentração de propriedades é particularmente alta. Os resultados obtidos a partir de um modelo probit binário mostram que a participação da família reduz as chances de internacionalização. No entanto, quando o CEO tem uma formação acadêmica nos negócios, a probabilidade de ter subsidiárias ou filiais no exterior aumenta. Finalmente, há evidências de que a presença de mulheres nos conselhos reduz as chances de empreendedorismo internacional. Palavras-chave: analise quantitativa, empreendedorismo internacional, empresa familiar, México.

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Independent directors’ human and social capital, firm internationalization and performance implications: An integrated agency-resource dependence view

Cited by 108 publications

References 72 publications

Entrepreneurial orientation and firm performance in family SMEs: the moderating effects of family, women, and strategic involvement in the board of directors

Entrepreneurial orientation and firm performance in family SMEs: the moderating effects of family, women, and strategic involvement in the board of directors

Financially Qualified Members in an Upper Echelon and Their Relationship with Corporate Sustainability: Evidence from an Emerging Economy

International entrepreneurship and Mexican listed family firms’ CEO/Board characteristics

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