Assessing the impact of corporate board independence and diversity on team decision-making. (15th May 2018)

• Record Type: Journal Article
• Authors: Phillips-Wren, Gloria
• Is Part Of: Journal of decision systems. Volume 27(2018)Supplement 1
• Page Start: 6
• Page End: 17
• Publication Date: 2018-05-15
• Subjects: Corporate boards of directors -- diversity -- independence -- decision-making -- Social Network Analysis -- centrality; Decision support systems -- Periodicals; Management information systems -- Periodicals; Information resources management -- Periodicals; Information storage and retrieval systems -- Periodicals; Management -- Communication systems -- Periodicals; Decision support systems; Information resources management; Information storage and retrieval systems; Management -- Communication systems; Management information systems; Periodicals; 658.40305
• DOI: 10.1080/12460125.2018.1464782
• Languages: English
• ISSNs: 1246-0125

Abstract

Abstract: Corporate Boards of Directors are governing bodies responsible for the overall activities of the corporation in dealing with its environment. These strategic decision-making groups have been studied for their impact and reflection of societal values from perspectives such as gender diversity, racial diversity, ethnic diversity, board independence. Yet, little research has been done on underlying attributes of diversity such as diversity of thought as it affects decision-making. This paper uses Social Network Analysis to investigate social ties between corporate boards using a rich data-set of 1430 largest publicly traded firms in the US. We develop a measure of diversity from 2Step centrality and relate it to firm performance through cluster analysis. The results show that diversity of thought can be indirectly studied and related to improved team decision-making.