A model of the dynamic of subgroup influence on boards

Morley, Julia ORCID: 0000-0002-9610-5071 and Alexander, J. Mckenzie ORCID: 0000-0002-2663-6993 (2022) A model of the dynamic of subgroup influence on boards. Academy of Management Proceedings, 22 (1). ISSN 2151-6561

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Abstract

Corporate governance regulation on board effectiveness tends to focus on board composition and pays less attention to the issue of the dynamics of board deliberation. We develop an agent-based model to provide a `how possible' explanation which engages primarily with these dynamics and demonstrates how a small subgroup on a board can dominate deliberation in virtue of rhetorical characteristics. In particular it is shown that a subgroup of 5 out of 14 board members can exert disproportionate influence over board decision-making. The assumptions of the model are validated by empirical evidence from interviews and a conversation analysis of two board meetings of the International Accounting Standards Board. The findings contribute to current research on board effectiveness by introducing an agent-based model and by providing directly observed evidence of the dynamics of board deliberation.

Item Type:	Article
Additional Information:	© 2024 Academy of Management
Divisions:	LSE
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Date Deposited:	28 Aug 2024 09:45
Last Modified:	11 Nov 2024 20:12
URI:	http://eprints.lse.ac.uk/id/eprint/124688

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