The Board Process Factors Antecedents of Board Performance
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Abstract
The main objective is to investigate that if a significant relationship exists among the board’s process factors and the board performance. For this purpose, a hypothesis was developed stating that variables like, effort norms, cognitive conflict, and use of skills and knowledge are the manifest variables for the board process, and the group think is positively related with board monitoring, networking and service roles of performance in Thailand. This relationship was tested using PLS. Thus, significant association was found among the two constructs which is also consistent with findings, in which the found supporting evidence for the idea that the board’s task performance is significantly influenced by the board’s process variables. In addition, each particular monitoring, networking and service tasks are differently affected by board processes. Furthermore, industry and firm characteristics also significantly affect the board’s task performance. In a similar vein, collected 325 samples from Thailand companies and 384 from the directors. Thus, board performance and board process are found to be related in terms of cognitive conflict, use of skills and knowledge, and individual parameters of effort norms. When information is received, the group members tend to avoid any superior debate and give in to their peers’ persuasive power and do not attempt to raise their point. This explains why policymakers use inefficient approach while taking decisions. suggested to integrate those processes which reinforce each other in a group. Besides, he also cited a few examples, such as, failure to consider risks arising from the selection of preferred choices; incomplete survey of objectives and alternatives; selective bias during information processing, inefficient search of information, failure to review alternatives that were rejected initially; and failure of executing contingency plans.
Article history : Received 18 March 2021
Revised 15 April 2021
Accepted 30 April 2021
SIMILARITY INDEX = 0.00 %
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