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

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

Amsterdam Business School

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?

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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?

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Is the language issue the main barrier to communication or other country-specific cultural expectations?

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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?

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How about a configurational approach rather than a one-dimensional approach?

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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?

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Further Suggestions

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How to define internationalization (commercial or financial), ownership structure, foreign board members, firm activity abroad?

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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?

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Start with the RQ and maybe reduce the LR

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What is the main contribution and which body of literature?

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High international boards higher financial internationalization. How it affects performance in a long-run?

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Integrate language in a broader concept of diversity.

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Difference between headquarter and subsidiary.