Open AccessANALYSIS OF BOARDS OF DIRECTORS' INVOLVEMENT IN STRATEGIC MANAGEMENT <BR> DOI: 10.5585/riae.v8i1.1630
Author(s) -
Sérgio Nunes Muritiba,
Eduardo Pinheiro Gondim de Vasconcellos,
Patrícia Morilha Muritiba,
J. Lawrence French
Publication year - 2009
Publication title -
revista ibero-americana de estratégia
Language(s) - English
Resource type - Journals
ISSN - 2176-0756
DOI - 10.5585/ijsm.v8i1.1630
Subject(s) - corporate governance , business , limiting , strategic management , strategic planning , strategic control , strategic leadership , balance (ability) , accounting , business administration , process management , marketing , strategic thinking , finance , psychology , engineering , mechanical engineering , neuroscience
This study analyzes the involvement of boards of directors in strategic management. Through a survey of 36 Brazilian companies affiliated with the Brazilian Institute of Corporate Governance, we intend to analyze the factors that determine the degree of involvement of boards of directors in strategic decisions. Three dimensions were focused: which strategic decisions are under the boards' responsibility; which criteria are used to determine the optimum involvement of the board; and to what degree boards centralize strategic decisions. Results showed that boards are increasing their involvement in different types of strategic decisions, not limiting themselves to monitoring and controlling the company. Also, boards will tend to reach a balance when it comes to centralization of authority, sharing decisions with top managers and acting like counselors in the strategic management process.