Where do international board members come from? Country-level antecedents of international board member selection in European boardsvan Veen, K., Sahib, P. R. & Aangeenbrug, E., Apr-2014, In : International Business Review. 23, 2, p. 407-417 11 p.
Research output: Contribution to journal › Article › Academic › peer-review
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.
|Number of pages||11|
|Journal||International Business Review|
|Publication status||Published - Apr-2014|
- 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