Board role performance and faultlines in family firms:. The moderating role of formal board evaluation

Alana Vandebeek, Wim Voordeckers*, Frank Lambrechts, Jolien Huybrechts

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

26 Citations (Web of Science)

Abstract

Recent research on the actual behaviour of boards suggests that more attention should be given to group dynamics in boards of directors. Therefore, we investigate if faultlines are detrimental to the role performance of boards of directors in family firms. In contrast to previous studies that only focus on one attribute, we use a more encompassing measure of faultlines, which is based on three attributes simultaneously (family-membership, type of directorship, and gender). Furthermore, we investigate the moderating role of formal board evaluation. Findings suggest a negative relationship between faultlines and both board control and service role performance. Interestingly, our study indicates that in boards that use formal evaluations, the negative effect of faultlines on control role performance is reversed. We discuss implications for faultline theory and research on boards of directors.
Original languageEnglish
Pages (from-to)249-259
Journaljournal of family business strategy
Volume7
Issue number4
DOIs
Publication statusPublished - Dec 2016

Keywords

  • Board composition
  • Board processes
  • Faultlines
  • Board evaluation
  • Family firms

Cite this