What do we know about what is going on inside the boardroom?

Abstract

PurposeThe fundamental role of corporate boards is to monitor and advise top management on strategic issues. It is therefore of the utmost importance that corporate directors are effective as a decision-making group to ensure corporate performance (Zattoni et al., 2015; Minichilli et al., 2012). But, what do we know about what is really going on inside the boardroom? This study aims to shed light on this important question.Design/methodology/approachThe authors undertake a targeted review of the literature to take account of all publications regarding board dynamics in relation to board effectiveness.FindingsThis study shows that we know very little about what is going on inside the “black box” of board dynamics and its relation to how effective directors are at doing their job, namely, monitoring and advising top management and establishing and expanding the firm’s network, to gain access to the resources it needs. The authors propose several avenues of research to better understand board dynamics.Originality/valueIn this study, the authors show how and why the present body of knowledge on team effectiveness should be harnessed to better understand corporate board dynamics in relation to board effectiveness.