A STUDY OF MANAGEMENT PERCEPTIONS OF THE IMPACT OF BOARD ROLES ON VALUE CREATION TYPOLOGY IN DEVELOPING ECONOMIES: THE CASE OF TUNISIAN LISTED COMPANIES

Abstract

This study deals with the contribution of corporate board to value creation in a developing economies context as Tunisia. This paper aims to go beyond the conventional approaches to identify the different board roles that can contribute to enhance the creation of a given type of value according to company objectives, stakeholders’ interests and environment expectations. The conceptual study has allowed us to identify three main board roles: a control role, a strategy role and a service role. Regarding value creation, we retained a typology with three kind of value: the economic value, the social value and the institutional value. The survey of 52 Tunisian listed companies revealed a positive relationship between two board roles and the three types of value creation

References

1. Babić, Verica, Nikolić Jelena and Jelena Erić (2011), “Rethinking board role performance: Towards an integrative model”, Economic Annals, Vol. 56, No. 190, pp.140 - 162.
2. Barney, Jay (2001), “Is the resource-based ‘view’ a useful perspective for strategic ...Yes”, The Academy of Management Review, Vol. 26 No.1, pp.41-56.
3. Baysinger, Barry and Hoskisson Robert (1990), “The composition of boards of directors and strategic control: Effects on corporate strategy” Academy of Management Review, Vol. 15, No. 1, pp.72–87.
4. Caby, Jérôme and Hirigoyen Gérard (2001), La création de valeur de l’entreprise, Paris : Economica.
5. Cappelletti L. et Khouatra Djamel (2004), “Concepts et mesure de la création de valeur organisationnelle”, Comptabilité-Contrôle-Audit, Vol. 10, No.1, pp.127-146.
6. Charreaux, Gérard (2003), “Le gouvernement d’entreprises“, (in Allouch, José Ed., Encyclopédie des ressources humaines), Paris : Vuibert, pp.628-640.
7. Claude, Jean François (1998), L’éthique au service du management : concilier autonomie et engagement pour l’entreprise, Paris : Edition Liaisons.
8. Collins, James and Porras Jerry (1996), “Building your company’s vision”, Harvard Business Review, Vol. 74, No. 5, pp.65–77.

9. Copeland, Tom, Koller Tim, Murrin Jack (2000), Valuation, Measuring and managing the value of companies, New York: John Wiley & Sons.
10. Dalton, Dan, Daily Catherine, Ellstrand, Alan and Johnson Jonathan (1998), “Meta-analytic reviews of board composition, leadership structure, and financial performance”, Strategic Management Journal, Vol. 19, No. 3, pp.269–290.
11. Davis, Gerald, and Cobb Adam (2010), “Resource dependence theory: past and future”, Research in the Sociology of Organizations, Vol. 28, pp.21-42
12. Fama, Eugene and Jensen Michael (1983), “Separation of ownership and control”, Journal of Law and Economics, Vol. 26, No. 2, pp.301-325.
13. Filatotchev, Igor (2007), “Corporate governance and the firm’s dynamics: contingencies and complementarities”, Journal of Management Studies, Vol. 44, No. 6, p.1041-1056.
14. Fink, Arlene (1995), The Survey Handbook, London: Sage.
15. Finkelstein, Sydney, and Mooney Ann (2003), “Not the usual suspects: How to use board process to make boards better, The Academy of Management Executive, Vol. 17, No. 2, pp.101-113.
16. Fitzgerald, Glynis, and Desjardins Nancy (2004), “Organizational Values and Their Relation to Organizational Performance Outcomes”, Atlantic Journal of Communication, Vol. 12, No. 3, pp.121-145.
17. Frioui, Mohamed and Ayed Taher Lazhar (2007), A proposal of some methods of value
18. http://mibes.teilar.gr/proceedings/2007/poster/Ayed.pdf [Accessed 10.09.2011] measures: toward a new
19. perspective, Galbreath, Jeremy (2002), “Twenty first century management rules: The management of relationships as intangible assets”, Management Decision, Vol. 40, No. 1/2, pp.116-127.
20. Hair, Joseph, Anderson Rolph, Tatham Ronald and Black William (1998), Multivariate Data Analysis, New Jersey: Prentice-Hall.
21. Huse, Morten (2005), “Accountability and Creating Accountability: a Framework for Exploring Behavioural Perspectives of Corporate Governance”, British Journal of Management, Vol.16, Vol.5, pp.65–79.
22. Huse, Morten (2009), “The value creating board and behavioral perspectives”, (In Huse, Morten Ed., The Value Creating Board: Corporate governance and organizational behavior), London: Rutledge, pp.3-10.
23. Huse, Morten, Gabrielsson Jonas and Minichilli Alessandro (2009), “How boards contribute to value creation?”, (In Huse Morten, Corporate Governance and Organizational Behaviour), NewYork: Routledg, pp.523-532.
24. Ingley, Coral, and Van Der Walt Nicholas (2001), “The strategic board: The changing role of directors in developing and maintaining corporate capability”, Corporate Governance: An International Review, Vol. 9, No. 3, pp.174-185.
25. Jensen, Michael (2001), “Value maximization, stakeholder theory and the corporate objective function”, Business Ethics Quarterly, Vol. 12, No. 1, pp.235-264.
26. Jensen, Michael and Meckling William (1976), Theory of the firm: managerial behavior, agency costs and ownership structure, Journal of Financial Economics, Vol.3, No. 4, p. 305-360.
27. Judge, William, and Zeithaml Carl (1992). “Institutional and strategic choice perspectives on board involvement in the strategic making process”, The Academy of Management Journal, Vol. 35, No. 4, pp. 766-794.
28. Kanbur, Aysun (2011), The Role of The Board of Directors in the Values of Corporate Governance Culture: An Empirical Evidence from the Listed Companies
29. http://icongfesr2011.tolgaerdogan.net [Accessed 1.12.2011] in the ISE Corporate Governance
30. Index, Levrau, Abigail, and Van Den Berghe Lutgart (2007), “Identifying Key Determinants Of Effective Boards Of Directors”, Faculty of Economics and Business Administration, Ghent University, Working Papers 07/447, Belgium: Ghent University.
31. Mack, Manfred (1997), Co-évolution, dynamique créatrice, Paris : Village Mondial.
32. Monks, Robert and Minow Nell (2004), Corporate Governance, Cambridge: Blackwell Business.
33. Moran, Peter and Ghoshal Sumantra (1999), “Markets, firms, and the process of economic development”, The Academy of Management Review, Vol. 24, No. 3, pp.390-412.
34. Mustakallio, Mokko and Autio, Erkko (2001), “Effects of formal and social controls on strategic decision making in family firms”,(in Corbetta, Guido and Montemerlo Daniela, Ed., The role of family in family business, Milano: EGEA, pp.205-222.
35. Nicholson, Gavin, and Kiel Geoffrey (2004), “A framework for diagnosing board effectiveness”, Corporate Governance An International Review, Vol. 12, No. 4, 442-460.
36. Pettigrew, Andrew and McNulty Terry (1995), “Power and influence in and around the boardroom”, Human Relations, Vol. 48, No. 8, pp.845–873.
37. Pfeffer, Jeffrey and Salancik Gerald (1978), The external control of organizations: A resource dependence perspective, New York: Harper and Row.
38. Prybil, Lawrence (2008) “What’s Your Board’s Culture?”, Trustee, Vol. 61, No. 6, pp.16-24. Rome,
39. http://www.directorsandboards.com/BBWinter2010.pdf [Accessed 1.12.2011]. (2010),
40. Corporate Culture in Corporate Governance, Sainsaulieu, Renaud (1990), L’entreprise, une affaire de société, Paris : Presses de la fondation nationale des sciences politiques.
41. Schendel, Dan and Hofer Charles (1979), Strategic management: A new view of business policy and planning, Boston: Little Brown.
42. Sellevoll, Thomas, Morten Huse and Cathrine Hansen (2007), The value creating board: Results from the '“Follow-up surveys” 2005/2006 in Norwegian firms, http://web.bi.no [Accessed 15.10.2011].
43. Van Ees, Hans, Van der Laan Gerwin and Postma Theo (2008), “Effective board behaviour in The Netherlands”, European Management Journal, Vol. 26, No. 1, pp.84-93.
44. Van den Heuvel, Jeroen , Van Gils Anita and Voordeckers Wim (2006), “Board roles in small and medium-sized family businesses: Performance and Importance”, Corporate Governance: An International Review, Vol. 14, No. 5, pp.467-485.
45. Williams, Sandra and Ferris Gerald (2000), “The Changing Nature of The Employment Relationship: Reclaiming Values in The Workplace”, Journal of Organizational Excellence, Vol. 20, No. 1, pp.25-30.
46. Zahra, Shaker, and Pearce John (1989), “Boards of directors and corporate financial performance: a review and integrative model”, Journal of Management, Vol. 15, No. 2, pp.291-334.