Sabina Nielsen

The Contribution of Women on Boards of Directors: Going Beyond the Surface

The increased attention to women on corporate boards presents new challenges to governance research. In this paper we go beyond demography and open the “black box” of board behavior by drawing upon theories of gender differences and group effectiveness. A unique survey of 201 Norwegian firms is used. The findings suggest that the ratio of women directors is positively associated with board strategic control. In addition, we find that the positive effects of women directors on board effectiveness are mediated through increased board development activities and through decreased level of conflict. However, our results show no evidence for a positive association between women directors and open debate. Nonetheless, open debate enhances boards strategic and operational control. Recognizing the limitations of traditional governance theories to explain the role and contributions of women on corporate boards, this paper draws upon group effectiveness and gender differences theories to shed some light on whether and how women make a difference to board effectiveness in strategic and operational control. Womens ability to make a contribution to the board may be attributable to their different leadership styles. The presence of women on corporate boards seems to increase board effectiveness through reducing the level of conflict and ensuring high quality of board development activities.

Learning and Innovation in International Strategic Alliances: An Empirical Test of the Role of Trust and Tacitness

Drawing on knowledge-based, organizational learning, and social capital perspectives, we propose and test an integrated framework in which knowledge tacitness and trust act as mediating mechanisms in the relationship between partner characteristics and alliance outcomes. We distinguish between learning and innovation outcomes and suggest that while innovation may result from alliance learning, it can also be created by combining separate knowledge bases without learning from each other. We contend that tacitness and trust play differing roles in the pursuit of learning and innovation and test this proposition on a sample of 120 international strategic alliances.

Top Management Team Diversity: A Review of Theories and Methodologies

This paper reviews empirical research on top management team (TMT) diversity. A number of scholars have concluded that upper echelons findings, in particular in terms of the consequences of TMT heterogeneity, have been inconclusive. This review conducts an in-depth analysis of conceptual and methodological issues related to upper echelons diversity studies and offers some directions for future research. Sixty journal articles, published in ten top international journals over a 22-year period (1984–2005), were analyzed. The results suggest that upper echelons research is increasingly multidisciplinary in nature; however, in-depth inquiries into the antecedents of TMT composition and the multilevel contextual influences on the implications of TMT heterogeneity are still needed. This review finds that clarity about level of analysis, both theoretically and empirically, remains an important issue in the field and thus a multilevel approach is strongly encouraged. Moreover, the complexity of diversity as a theoretical construct needs to be acknowledged and operationalized accordingly in upper echelons studies.

Board task performance: An exploration of micro- and macro-level determinants of board effectiveness

This paper addresses recent calls to narrow the micro–macro gap in management research (Bamberger, 2008), by incorporating a macro-level context variable (country) in exploring micro-level determinants of board effectiveness. Following the integrated model proposed by Forbes and Milliken (1999), we identify three board processes as micro-level determinants of board effectiveness. Specifically, we focus on effort norms, cognitive conflicts and the use of knowledge and skills as determinants of board control and advisory task performance. Further, we consider how two different institutional settings influence board tasks, and how the context moderates the relationship between processes and tasks. Our hypotheses are tested on a survey-based dataset of 535 medium-sized and large industrial firms in Italy and Norway, which are considered to substantially differ along legal and cultural dimensions. The findings show that: (i) Board processes have a larger potential than demographic variables to explain board task performance; (ii) board task performance differs significantly between boards operating in different contexts; and (iii) national context moderates the relationships between board processes and board task performance. Copyright

The Impact of Top Management Team Nationality Diversity and International Experience on Foreign Entry Mode

Nationality diversity and international experience constitute two related yet distinct sources of competence among upper echelons. While both TMT international experience and nationality diversity increases the likelihood of firms expanding outside their home region, our results show that TMTs with international experience are more likely to expand abroad via greenfield investments, whereas nationally diverse TMTs are more likely to engage in international acquisitions and joint ventures. This highlights the need to treat TMT nationality diversity and international experience as two different characteristics influencing foreign entry mode decision.

The Role of External Environment in Upper Echelons Theory A Review of Existing Literature and Future Research Directions

Upper echelons research has largely focused on the antecedents and consequences of top management teams (TMTs) from the team and firm levels of analysis. This paper reviews empirical research on TMTs with a specific emphasis on the role of the external environment. Applying institutional and industrial organization theories, a cross-level conceptual model outlining the direct, mediating, and moderating effects of the external environment on upper echelons is developed. This review distinguishes between industry and institutional levels of analysis and three types of environmental characteristics: stable, dynamic, and transformational. The paper further explains the relationships between each category of characteristics and firm upper echelons, and outlines possible avenues for future research.

Why do firms employ foreigners on their top management team? An exploration of strategic fit, human capital and attraction-selection-attrition perspectives

The number of foreigners appointed to top management teams has increased significantly over the past decade. However, the question of why some firms elect to employ foreign nationals in top executive positions remains unclear. This study tests competing explanations based on strategic fit, human capital and attraction—selection—attrition perspectives. Results from empirical tests utilizing a multi-level methodology on a sample of Swiss publicly listed companies suggest that degree of international diversification is positively associated with the likelihood of having a foreign executive, whereas human capital characteristics do not explain the propensity to employ a foreigner on the top management team. In addition, nationality diversity at the board level, as well as the international experience of the top management team, predict the probability of having a foreign top executive. Pourquoi les entreprises emploient-elles des étrangers au sein de leur équipe de direction ? Une étude des différentes perspectives du fit stratégique, du capital humain et du modèle ASA (attraction-sélection-attrition) Sabina Nielsen et Bo Bernhard Nielsen Le nombre d’étrangers nommés à des équipes de direction a augmenté de façon significative au cours de la dernière décennie. Pourquoi certaines entreprises décident-elles d’employer des étrangers à des postes de cadres supérieurs demeure cependant peu clair. Cette étude teste des explications contradictoires sur la base des perspectives du fit stratégique, du capital humain et du modèle ASA. Les résultats d’essais empiriques utilisant une méthodologie multi-niveaux sur un échantillon de compagnies suisses cotées en bourse suggèrent que le degré de diversification internationale est positivement associé à la probabilité d’avoir un cadre étranger, alors que les caractéristiques humaines n’expliquent pas la propension d’employer un étranger au sein de l’équipe de direction. En outre, la diversité nationale à l’échelon du conseil d’administration ainsi que l’expérience internationale des membres de l’équipe de direction, rendent plus probable le fait d’avoir des cadres supérieurs étrangers au sein de l’entreprise. n du Ccié positi

A MULTILEVEL APPROACH TO UNDERSTANDING THE MULTINATIONALITY- PERFORMANCE RELATIONSHIP

This paper offers a discussion of the key multilevel issues pertaining to the multinationality–performance (M–P) relationship. Arguably, one of the most important areas of research in international business, firm internationalization and its consequences are multilevel phenomena, influenced by forces at different managerial and structural levels: from the executive, subsidiary and firm, to the country and industry. We suggest that accounting for important factors at each level and for their cross-level interactions may help reconcile inconsistent findings and advance our understanding of the M–P relationship. Based on a critical review of the literature, we offer recommendations regarding the appropriate levels of theory, measurement, and analysis to guide future research.

A Cross-classified Analysis of the International Diversification-performance Relationship

IB research explains the sources of variation in firm performance; including firm specific resources and environmental conditions evolving over time. Hence, factors at multiple levels and across ti...

Why Do Firms Employ Foreigners on Their Top Management Teams? A Multilevel Exploration of Individual and Firm Level Antecedents

In Europe, in particular, the number of foreigners appointed to top management teams has increased significantly over the past decade. However, the question of why some firms elect to employ foreign nationals on their top management teams remains unclear. This study utilizes a multi-level methodology to test the degree to which employment of a foreigner on the top management team is driven by individual level human capital characteristics versus firm level strategic considerations. Results from empirical tests on a sample of Swiss publicly listed companies suggest that degree of international diversification is positively associated with the likelihood of having a foreign executive, whereas human capital characteristics do not explain the propensity to employ a foreigner on the top management team. Further analyses indicate that nationality diversity at the board level, as well as the international experience of the top management team, are possible predictors of the probability of having a foreigner on the top management team.