When Will They Learn? An Accountability Theory Perspective On The Effects Of Board Of Director Decision Monitoring On Ceo Learning

This paper contributes to the management literatures on board of director effectiveness and strategic cognition by developing a conceptual model that describes how the nature of the decision monitoring pressures that CEOs face from their boards of directors will influence their ongoing abilities to...

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Bibliographic Details
Published inIDEAS Working Paper Series from RePEc
Main Authors McDonald, Michael L, Khanna, Poonam
Format Paper
LanguageEnglish
Published St. Louis Federal Reserve Bank of St. Louis 01.01.2013
Subjects
Boards of directors
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Summary:This paper contributes to the management literatures on board of director effectiveness and strategic cognition by developing a conceptual model that describes how the nature of the decision monitoring pressures that CEOs face from their boards of directors will influence their ongoing abilities to learn about the complex strategic issues facing their firms. Our model highlights the contingent nature of the effects of board decision monitoring on CEO learning. We identify a range of conditions under which board decision monitoring will be less likely to promote learning by CEOs, and may actually interfere with executive learning.