Where do international board members come from? Country-level antecedents of international board member selection in European boards

Veen, Kees van; Sahib, Padma Rao; Aangeenbrug, Evelien

doi:10.1016/j.ibusrev.2013.06.008

Cited by 41 publications

(38 citation statements)

References 63 publications

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“…As shown in Models 5 to 8, the subsidiary board is less active in all roles when more subsidiary directors are headquarters country nationals. Prior research on board internationalization suggests that foreign directors may impair the effectiveness of board monitoring because of geographic distance and language issues (Masulis et al, 2012;Van Veen et al, 2014). Our finding seems to support this viewpoint.…”

Section: Regression Resultssupporting

confidence: 75%

“…These findings are consistent with the literature on boards in stand-alone firms which support that the boards' ability to perform a specific task is related to the directors' experience and knowledge (Carpenter and Westphal, 2001;Hillman and Dalziel, 2003;Kim and Cannella, 2008;Kroll et al, 2008;Rindova, 1999). Further, we extend the literature on board internationalization (Masulis et al, 2012;Oxelheim and Randøy, 2003;Oxelheim et al, 2013;Van Veen et al, 2014) to the context of foreign subsidiaries. Our findings suggest that recruiting foreign directors onto the subsidiary boards of MNEs has important implications for the roles of these subsidiary boards.…”

Section: Contributions and Implicationssupporting

confidence: 90%

“…First, the literature on board internationalization suggests that foreign directors improve board monitoring by contributing independent thinking, raising controversial issues, and consequently reducing managerial entrenchment (Masulis et al, 2012;Ruigrok et al, 2007;Van Veen et al, 2014). Empirical evidence supporting this argument shows that the presence of outsider Anglo-American board membership enhances the market value of listed firms (Oxelheim and Randøy, 2003), and international returnees as outside directors reinforce corporate restructuring efforts (Lee and Roberts, 2014).…”

Section: Subsidiary Strategy Headquarters Country Directors and Thementioning

confidence: 99%

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The Roles of Subsidiary Boards in Multinational Enterprises

Deloof

Jorissen

2015

Journal of International Management

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Available online xxxxIn recent years, shareholders, regulators, and academics have become increasingly interested in how multinational enterprises (MNEs) can ensure sound corporate governance throughout all entities within a firm. One important mechanism available to MNEs for improving their global governance is the subsidiary board of directors. However, to date scant academic research has focused on the roles of subsidiary boards and the factors that influence their involvement in different roles. Using survey data from a sample of MNE subsidiaries operating in Belgium with headquarters in 14 different countries, we find that a subsidiary board performs four roles: control, strategy, coordination, and service. Further, a subsidiary board is more involved in control, strategy, and service roles if the subsidiary operates only in the local market, independently from the headquarters (the local implementer subsidiary). In particular, the board of the local implementer subsidiary is more involved in strategy and coordination roles when more directors are headquarters country nationals. Our findings collectively suggest that the subsidiary board facilitates a subsidiary's pursuit of its strategic objective and helps to manage the headquarters-subsidiary agency problem. Moreover, subsidiary directors' characteristics influence the subsidiary board's ability to perform its roles.

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Section: Regression Resultssupporting

confidence: 75%

Section: Contributions and Implicationssupporting

confidence: 90%

Section: Subsidiary Strategy Headquarters Country Directors and Thementioning

confidence: 99%

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The Roles of Subsidiary Boards in Multinational Enterprises

Deloof

Jorissen

2015

Journal of International Management

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“…68 It is also significant that a large proportion of foreign managers in the EU are from the regions with a different cultural approach to bribery, such as Africa, continental Europe, 69 or Indians in the UK. 70 …”

Section: B From the Duty Bearers' Perspectivementioning

confidence: 99%

Home Countries and Transnational Bribery: China’s Changing Approach

Radavoi¹,

Bian²

2016

CWR

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“…First, owing to new environmental complexities outside companies' home states, the demand for a more heterogonous staff with a broader knowledge base has resulted in an increase in the number of board members originating from different countries [van Veen et al, 2014]. As van Veen et al [2014] posit, companies that expand abroad face a growing pressure to internalize the international aspects into their boards.…”

Section: Introductionmentioning

confidence: 99%

Does Country of Origin Matter whilst Evaluating Candidates for Managerial Positions?

Rozkwitalska¹,

Magier-Łakomy²

2015

Journal of Intercultural Management

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A growing number of foreign country nationals in economies worldwide challenges academics to raise a question whether one's country of origin (COO) matters when selecting candidates for managerial positions. Thus the aim of this paper is to analyze the COO effect on the evaluation of managerial competence of a foreign individual. The analysis includes both the literature review and the empirical findings from the authors' pilot research. A focus group interview is the method that was applied in the study. The analysis contributes to the nascent streams in international business and cross-cultural management research that concern the COO effect and the liability of foreignness (LOF) that refers to foreign newcomers (i.e. immigrants, ex/inpatriaties). It also adds some practical implications for the International Human Resource Management literature with that respect. The empirical findings suggest that COO is apparent when managerial skills are evaluated by locals.

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Where do international board members come from? Country-level antecedents of international board member selection in European boards

Cited by 41 publications

References 63 publications

The Roles of Subsidiary Boards in Multinational Enterprises

The Roles of Subsidiary Boards in Multinational Enterprises

Home Countries and Transnational Bribery: China’s Changing Approach

Does Country of Origin Matter whilst Evaluating Candidates for Managerial Positions?

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