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Corporate linkages and organizational environment: A test of the resource dependence model
Author(s) -
Boyd Brian
Publication year - 1990
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250110602
Subject(s) - business , resource dependence theory , industrial organization , resource (disambiguation) , control (management) , test (biology) , upper echelons , resource based view , strategic management , marketing , economics , management , computer science , competitive advantage , ecology , biology , computer network
Abstract Two competing models of corporate boards are presented. Management control proposes that the board is a rubber stamp for management, and plays a minor role in strategic management, while resource dependence asserts that the board is a tool used to manage environmental uncertainty. A structural model was developed to determine whether corporate boards respond to different types of environmental uncertainty, using data on 147 companies from nine industry groups. It was found that boards tended to be smaller in a more uncertain environment, while having an increased number of interlocks. This relationship was stronger in high‐performing firms.