Characteristics of the board of directors and involvement in innovation activities: a cognitive perspective

Author(s):  
Jamel Chouaibi ◽  
Habib Affes ◽  
Younes Boujelbene
2009 ◽  
Vol 5 (3) ◽  
pp. 34-44 ◽  
Author(s):  
Jamel Chouaibi ◽  
Younes Boujelbene ◽  
Habib Affes

This article focuses on the relationship between the characteristics of the board of directors and the innovation policies in the Tunisian context from a cognitive perspective of corporate governance. The method used in this study is based on the regression analysis. We directly regress the board of directors’ characteristics with the firm level of innovation. Our model includes some control variables such as the firm’s size, the firm’s sector of activity and even whether firm is listed or not. We empirically demonstrate that only the inside directors and the duality of the CEO are positively and significantly associated with the firm’s level of innovation. Moreover, the empirical results show that the big size of the board has a negative impact on the development of innovative firms. In the same way, we demonstrate that the compensation system which is based on long-term objectives has no influence on the determination of the innovation policies in Tunisian firms.


2020 ◽  
Vol 7 ◽  
pp. 42-51
Author(s):  
Shah Rol Hussain ◽  
Fathyah Hashim ◽  
Mohd Faizal Jamaludin

Scholars have given increased attention to seek for a solution to improve firms’ performance. The literature demonstrated that technology innovation is considered the most powerful means of firms’ performance for modern companies. Empirical findings showed, however, that the relationship between technological innovation and firms’ performance continues to be inconclusive as it has a negative, positive or no impact on firms’ performance. In order to address such gap, this paper proposes a theoretical framework to describe the moderating effect of directors’ network on technological innovation and firms’ performance. It shows that the effectiveness of business innovation can be enhanced through direct or indirect use of each network of directors. The firm still neglects the significant capacity of the board of directors' network in a firm. In short, the crucial discussion found in this paper will lead to improving the information on innovation, networking and organizational studies as well as act as a reference to study in other countries. This study is a promising field. The business will benefit from a large social network of directors. Thus, the company is proposing to fully utilize the function of directors’ network to leverage the innovation activities and firm’s performance.


Sign in / Sign up

Export Citation Format

Share Document