Rethinking board diversity with the behavioural theory of corporate governance: opportunities and challenges for advances in theorising
In this study, a cross-theoretical hybridization between diversity archetypes and the behavioural theory of corporate governance is proposed. Within an integrative theoretical framework, I discuss three variants of the board’s social setting: diversity as variety; separation; and disparity. Their influence on the mechanisms of the socially-situated and socially-constituted agency, and in consequence the socially-constructed boardroom reality, is considered. The model stipulates what kind of impact individual agency perception, associated with each diversity archetype, can be expected to have on board task effectiveness (monitoring/control, resource-provision, and strategy-making/consulting). There are altogether six theoretical propositions made in this paper. The study represents an application of the behavioural theory of corporate governance in the theory-building paper. I utilise the notion of diversity and the theory of subgroups from existing group effectiveness literature. The proposed theoretical framework strongly benefits from recent taxonomically-systematizing efforts in the area of diversity research. The proposed model also allows for due consideration of behavioural patterns in the boardroom. This framework scores high on its generalisability to a wider population and realism of context, but low on its precision of measurement. A discussion of the model’s limitations unfolds in the wider context of the challenges and paradoxes/conundrums with which the community of corporate governance scholars is invariably confronted. The model suffers from a limited translatability of findings into actionable managerial implications and recommendations of the regulator, as expressed in corporate governance codes.
The sole author of this work is Dr Szymon Kaczmarek and he is the sole holder of the intellectual property rights in relation to this article, which he transferred in a required capacity to Springer as a journal publisher.
Citation : Kaczmarek, S. (2017) Rethinking board diversity with the behavioural theory of corporate governance: Opportunities and challenges for advances in theorizing. Journal of Management and Governance, online first
ISSN : 1385-3457
Peer Reviewed : Yes