CEO outside directorships and firm performance: A reconciliation of agency and embeddedness views

Marta A. Geletkanycz, Brian K. Boyd

Research output: Contribution to journalArticlepeer-review

111 Scopus citations

Abstract

A debate surrounds CEO outside board service and its contribution to firm performance. Agency scholars contend CEO outside directorships constitute a form of managerial opportunism that potentially detracts from internal responsibilities, but embeddedness scholars argue that directorship ties afford access to information and resources of important strategic utility. In an effort at reconciliation, we propose and test a midrange, contingency-based model receiving strong support in analysis of more than 400 large firms. CEO outside directorships are positively related to the long-term performance of firms facing competitive constraints on growth. They also benefit strategically focused firms more than highly diversified ones.

Original languageEnglish (US)
Pages (from-to)335-352
Number of pages18
JournalAcademy of Management Journal
Volume54
Issue number2
DOIs
StatePublished - Apr 1 2011
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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