Upper Echelons Revisited: A Process-Oriented View on Corporate Governance

Upper Echelons Revisited: A Process-Oriented View on Corporate GovernanceThis dissertation focuses on examining social psychological processes embedded in the boards internal and external environments. Although boards of directors are commonly seen as the formal link between the firms shareholders and top management, a growing line of literature suggests boards as groups with each director bringing his or her personality and individual experiences into the boardroom. Accordingly, in addition to the directors professional

This dissertation focuses on examining social-psychological processes embedded in the boardsÕ internal and external environments. Although boards of directors are commonly seen as the formal link between the firmsÕ shareholders and top management, a growing line of literature suggests boards as groups with each director bringing his or her personality and individual experiences into the boardroom. Accordingly, in addition to the directorsÕ professional-related knowledge and experiences, social-psychological processes _ related to the exchange of information, group participation, and interaction _ are critical determinants of board effectiveness. Thus, the consideration of such processes within the upper echelons of firms may help to explain in more detail why some boards are in a better position than others to effectively fulfill their roles and, thereby, to ensure their firmsÕ long-term success.