work processes of the corporate board Rebecca Piekkari, Lars - PowerPoint PPT Presentation

Amsterdam Business School The silent board: How language diversity may influence work processes of the corporate board Rebecca Piekkari, Lars Oxelheim, Trond Randøy Ilir Haxhi University of Amsterdam

The silent board RQ: how does language diversity influence work processes of the board? Background: internationalization, diversity and language Method: a multi-country case study: 9 listed firms, 4 Nordic countries 30 personal interviews: CEOs, chairmen, board members • analysis of company websites and annual reports • Conclusions: Changing the board language not a technical issue – it effects board dynamics, effectiveness and firm Chairmen/nomination committees aware of the effects of language diversity • Language: misfit slow board internationalization - high com/financial • internationalization Contribution: language distinct dimension of diversity (culture, nationality) Focus on process rather than demographics

Why care about the language? Most of previous studies on diversity and financial performance, why the choice of  a focusing on the process? How to operationalize diversity variables used in quantitative analysis to a qualitative study? Is the language issue the main barrier to communication or other country-specific  cultural expectations? Language not an isolated dimension of diversity. However; in the study, not the  interrelated effect of language with culture, gender, nationality or other diversity dimensions? How about a configurational approach rather than a one-dimensional approach?  Language affects the board dynamics and social exclusion but how all this affects  firm performance or board effectiveness? What is the outcome? Board decision- making and behavior?

Further Suggestions How to define internationalization (commercial or financial), ownership  structure, foreign board members, firm activity abroad? Is this context-dependent? How would the language use will differ across cases  with dynamic versus static board settings? E.g. highly heterogeneous versus homogeneous boards? Start with the RQ and maybe reduce the LR  What is the main contribution and which body of literature?  High international boards higher financial internationalization. How it affects  performance in a long-run? Integrate language in a broader concept of diversity.  Difference between headquarter and subsidiary.  · 4