The Influence Of Boards Of Directors Characteristics On Strategic Decision-Making: Evidence From Greek Companies

This study explores the influence Boards of Directors’ demographic characteristics on the process of making strategic decisions. Empirical testing is based on a sample of 105 Greek companies listed on the Athens Stock Exchange. The results suggest that educational level affect both the financial reporting and the hierarchical decentralisation in the strategic decision-making process. Also, functional background of executives was found to be related with financial reporting. However, the educational specialty did not appear to have any significant influence on the strategic decision-making process. In light of these findings, implications for practitioners are made and avenues for future research are suggested.

[1]  Abdul A. Rasheed,et al.  The Relationships between Top Management Demographic Characteristics, Rational Decision Making, Environmental Munificence, and Firm Performance , 2005 .

[2]  Deepak K. Datta,et al.  Strategic Decision Processes: Critical Review and Future Directions , 1993 .

[3]  P. Marsh.  Managing strategic investment decisions in large diversified companies , 1988 .

[4]  E. Todeva.  Behavioural Theory of the Firm , 2007 .

[5]  H. Simon,et al.  Selective perception: A note on the departmental identifications of executives. , 1958 .

[6]  David John Hickson,et al.  Top decisions : strategic decision-making in organizations , 1987 .

[7]  H. P. Sims,et al.  Top Management Team Demography and Process: The Role of Social Integration and Communication , 1994 .

[8]  Ann Langley,et al.  Patterns in the Use of Formal Analysis in Strategic Decisions , 1990 .

[9]  Karen A. Bantel.  Top Team, Environment, and Performance Effects on Strategic Planning Formality , 1993 .

[10]  T. Andersen.  Strategic Planning, Autonomous Actions and Corporate Performance , 2000 .

[11]  Mark P. Sharfman,et al.  Does Decision Process Matter? A Study Of Strategic Decision-making Effectiveness , 1996 .

[12]  J. Bryson,et al.  Critical factors affecting the planning and implementation of major projects , 1993 .

[13]  V. Papadakis,et al.  Greek Management: Diagnosis and Prognosis , 1996 .

[14]  Marc J. Dollinger,et al.  Environmental Boundary Spanning and Information Processing Effects on Organizational Performance , 1984 .

[15]  P. Kline.  The handbook of psychological testing, 2nd ed. , 1993 .

[16]  David Jones,et al.  Corporate strategy , 1989, Nature.

[17]  J. Child,et al.  The Influence of Decision, Environmental and Firm Characteristics on the Rationality of Strategic Decision-Making , 2007 .

[18]  M. Hitt,et al.  Industrial Firms' Grand Strategy and Functional Importance: Moderating Effects of Technology and Uncertainty , 1982 .

[19]  Vassilis M. Papadakis,et al.  Research on Strategic Decisions: Where Do We Go from Here? , 1997 .

[20]  David Miller,et al.  Chief executive personality and corporate strategy and structure in small firms , 1986 .

[21]  Michael J. Stahl,et al.  Strategic Management for Decision Making , 1991 .

[22]  Ari Ginsberg,et al.  Measuring and modelling changes in strategy: Theoretical foundations and empirical directions , 1988 .

[23]  Marjorie A. Lyles,et al.  Organizational Problem Formulation: An Empirical Study. , 1980 .

[24]  Deepak K. Datta,et al.  CEO Characteristics: Does Industry Matter? , 1996 .

[25]  Deepak K. Datta,et al.  CEO Successor Characteristics and the Choice of Foreign Market Entry Mode: An Empirical Study , 2002 .

[26]  T. S. Bateman,et al.  The psychological context of strategic decisions: A model and convergent experimental findings , 1989 .

[27]  John G. Michel,et al.  DIVERSIFICATION POSTURE AND TOP MANAGEMENT TEAM CHARACTERISTICS , 1992 .

[28]  Beverly B. Tyler,et al.  Strategic decision models: Integrating different perspectives , 1991 .

[29]  J. L. Holland,et al.  Making Vocational Choices: A Theory of Careers , 1973 .

[30]  Beverly B. Tyler,et al.  The effects of executives experiences and perceptions on their assessment of potential technological alliances , 1998 .

[31]  N. Papalexandris.  Factors affecting management staffing and development: the case of Greek firms , 1988 .

[32]  P. Barwise,et al.  How Much do CEOs and Top Managers Matter in Strategic Decision-Making? , 2002 .

[33]  Deepak K. Datta,et al.  Contextual Influences on Executive Selection: Firm Characteristics and CEO Experience , 1997 .

[34]  D. Chambers,et al.  Strategic decision-making processes: the role of management and context , 1998 .

[35]  S. Lieberson,et al.  Leadership and organizational performance: a study of large corporations. , 1972, American sociological review.

[36]  James Guthrie,et al.  EXECUTIVE SUCCESSION: ORGANIZATIONAL ANTECEDENTS OF CEO CHARACTERISTICS , 1994 .

[37]  M. Wiersema,et al.  Top Management Team Demography and Corporate Strategic Change , 1992 .

[38]  P. A. Losty,et al.  A Behavioural Theory of the Firm , 1965 .

[39]  Top Management Teams , 2010 .

[40]  D. Hambrick,et al.  Top-management-team tenure and organizational outcomes: The moderating role of managerial discretion. , 1990 .

[41]  Henry Mintzberg,et al.  The Structure of "Unstructured" Decision Processes , 1976 .

[42]  J. Child.  Organizational Structure, Environment and Performance: The Role of Strategic Choice , 1972 .

[43]  Jorge B. Stein,et al.  CONTEXTUAL INFLUENCE ON STRATEGIC DECISION METHODS , 1980 .

[44]  P. Kline.  Handbook of Psychological Testing , 2013 .

[45]  H. Triandis,et al.  Three cross-cultural studies of subjective culture. , 1968, Journal of personality and social psychology.

[46]  Rhonda K. Reger,et al.  Strategic Leadership: Top Executives And Their Effects On Organizations , 1996 .

[47]  Richard Mead,et al.  International Management: Cross-Cultural Dimensions , 1994 .

[48]  L. Donaldson.  Strategic Leadership: Top Executives and Their Effects on Organizations , 1997 .

[49]  A. Lewin,et al.  CEO Attitudes as Determinants of Organization Design: An Integrated Model , 1994 .

[50]  M. Hitt,et al.  Corporate distinctive competence, strategy, industry and performance , 1985 .

[51]  K. Andrews.  The Concept of Corporate Strategy , 1971 .

[52]  G. Hofstede,et al.  Culture′s Consequences: International Differences in Work-Related Values , 1980 .

[53]  Charles W. Hofer.  Toward a Contingency Theory of Business Strategy , 1975 .

[54]  Vassilis M. Papadakis,et al.  Do CEOs shape the process of making strategic decisions? Evidence from Greece , 2006 .

[55]  D. Hambrick,et al.  Upper Echelons: The Organization as a Reflection of Its Top Managers , 1984 .

[56]  Anisya S. Thomas,et al.  THE PERFORMANCE IMPACT OF STRATEGY - MANAGER COALIGNMENT: AN EMPIRICAL EXAMINATION , 1991 .

[57]  Deepak K. Datta,et al.  CEO Experiences: Effects on the Choice of FDI Entry Mode , 2006 .

[58]  S. Jackson,et al.  Top management and innovations in banking: Does the composition of the top team make a difference? , 1989 .

[59]  James D. Westphal,et al.  Who directs strategic change? Director experience, the selection of new CEOs, and change in corporate strategy , 2001 .

[60]  The IRI Medalist's Address: Room for Whom at the Top? Promoting Technical Literacy in the Executive Suite , 1993 .

[61]  M. Hannan,et al.  The Population Ecology of Organizations , 1977, American Journal of Sociology.

[62]  J. Pfeffer,et al.  Environments of Organizations , 1976 .

[63]  Alfred Dupont Chandler,et al.  战略与结构 : 美国工商企业成长的若干篇章=strategy and structure : chapters in the history of the American industrial enterprise , 1962 .

[64]  Vassilis M. Papadakis,et al.  What Can We Tell Managers about Making Strategic Decisions , 1997 .

[65]  S. Elbanna.  Strategic Decision-Making: Process Perspectives , 2006 .

[66]  Mason A. Carpenter,et al.  Top Management Teams, Global Strategic Posture, and the Moderating Role of Uncertainty , 2001 .

[67]  R. Duane Ireland,et al.  Decision-making and firm success , 2004 .

[68]  Michael C. White,et al.  Strategy, CEO Specialization, and Succession , 1987 .

[69]  Charles R. Schwenk.  The Essence of Strategic Decision Making , 1988 .

[70]  V. Govindarajan.  Implementing competitive strategies at the business unit level: Implications of matching managers to strategies , 1989 .