Corporate linkages and organizational environment: A test of the resource dependence model

Research output: Contribution to journalArticlepeer-review

452 Scopus citations

Abstract

Two competing models of corporate boards are presented. Management control proposes that the board is a rubber stamp for management, and plays a minor role in strategic management, while resource dependence asserts that the board is a tool used to manage environmental uncertainty. A structural model was developed to determine whether corporate boards respond to different types of environmental uncertainty, using data on 147 companies from nine industry groups. It was found that boards tended to be smaller in a more uncertain environment, while having an increased number of interlocks. This relationship was stronger in high‐performing firms.

Original languageEnglish (US)
Pages (from-to)419-430
Number of pages12
JournalStrategic Management Journal
Volume11
Issue number6
DOIs
StatePublished - Oct 1990
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

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