Board Influence on Top Managers' Strategy Formulation Process: Cognitive and Emotional Dynamics

Timo Vuori, Quy Nguyen Huy

Research output: Contribution to conferenceAbstractScientificpeer-review

Abstract

We analyzed a company that faced severe strategic challenges during 2007-2013 to understand how the board of directors influences top managers’ strategy formulation process. We identify how passive board involvement left top managers vulnerable to various emotional, cognitive, and social-political biases that have been recognized in the previous literature; and how active cognitive influence and emotion regulation by the board toward top managers helped top managers to reduce the impact of these biases and initiate strategic search faster, consider a wider variety of options, be less myopic in their attention allocation, and influence strategic partner firms more. We describe the associated mechanisms in detail and develop an inductive model of board influence on top managers’ strategy formulation process.
Original languageEnglish
Publication statusPublished - 2017
MoE publication typeNot Eligible
EventAcademy of Management Annual Meeting: At the Interface - Atlanta, United States
Duration: 4 Aug 20178 Aug 2017
Conference number: 77

Other

OtherAcademy of Management Annual Meeting
Abbreviated titleAOM
Country/TerritoryUnited States
CityAtlanta
Period04/08/201708/08/2017

Keywords

  • board of directors
  • emotion
  • strategy formulation

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