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Boards of directors in small and medium-sized industrial firms: examining the effects of the board's working style on board task performance

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  • Jonas Gabrielsson
  • Henrik Winlund

Abstract

Increased attention towards the role of the board makes demands on reforms in the boardroom. In many countries, even small and medium-sized firms are experiencing the challenges of creating well functioning boards. In this paper the authors examine the importance of structures and processes in the boardroom of 302 small and medium-sized industrial firms in Sweden. The contribution of the paper is not only that it tries to explore the relationship between processes in the board and board performance, but also that it pays attention to the working structures that exist to maximize the board's task performance. In this study board task performance is measured as the performance of various control and service roles. There are two main findings. (1) The board members' involvement, and (2) the board's formal structures are important for the board's ability to perform its tasks effectively. The findings empirically support the arguments about the importance of a good and clearly defined working style in the board.

Suggested Citation

  • Jonas Gabrielsson & Henrik Winlund, 2000. "Boards of directors in small and medium-sized industrial firms: examining the effects of the board's working style on board task performance," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 12(4), pages 311-330, October.
    • Handle: RePEc:taf:entreg:v:12:y:2000:i:4:p:311-330
    DOI: 10.1080/08985620050177930
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