Publication

Where do international board members come from? Country-level antecedents of international board member selection in European boards

van Veen, K., Sahib, P. R. & Aangeenbrug, E., Apr-2014, In : International Business Review. 23, 2, p. 407-417 11 p.

Research output: Contribution to journalArticleAcademicpeer-review

Copy link to clipboard

Documents

  • Where do international board members come from Country-level antecedents

    Final publisher's version, 547 KB, PDF document

    Request copy

DOI

In this paper, it is argued that boards internationalize by recruiting international directors in order to increase companies' performance. However, increasing nationality diversity on a board can be costly considering that it potentially creates cooperative problems on a board due to fault-lines and separation processes. As a result, boards will prefer international candidates who are more similar to themselves on a variety of 'distances'. Based on data collected regarding 5683 board members of 361 companies from 15 countries in 2005-2007, we discover that the greater the distance (cultural, institutional and geographical) between the candidates' and the companies' country-of-origin, the lower the fraction of board members of that nationality on boards. Subsequently, it is argued that historical ties between countries play a 'distance compressing' role and partially compensate for the effects of distance. A colonial tie between countries will make recruitment of these particular nationalities more likely than others. (C) 2013 Published by Elsevier Ltd.

Original languageEnglish
Pages (from-to)407-417
Number of pages11
JournalInternational Business Review
Volume23
Issue number2
Publication statusPublished - Apr-2014

    Keywords

  • Board of directors, Colonial ties, Cultural distance, Europe, Gravity model, Nationality diversity, Recruitment, TOP MANAGEMENT TEAM, FIRM PERFORMANCE, MULTINATIONAL-ENTERPRISE, CULTURAL DISTANCE, SUBSIDIARY PERFORMANCE, CORPORATE GOVERNANCE, NATIONAL CULTURE, PSYCHIC DISTANCE, EMPIRICAL-TEST, GRAVITY MODEL

ID: 15746923