engleski

Board Dynamic Capability

The emerging contemporary approach to corporate governance field emphasizes a holistic perspective, i.e. organizational level of governing the corporation. Since the ongoing business reality assumes a complex, ever-changing corporate ecosystem that requires governance excellence, a permanent upgrading of governance practice is needed in order to provide the company with possibility to take advantage of its effective and efficient corporate governance system. Within that dynamic context, the Board’s role, position and performance become even more salient. This study imports the dynamic capabilities view in the corporate governance discipline, considering it as the useful prerequisite of modern governance. In particular, three constituting dynamic capabilities, sensing, seizing and transforming capability are conceptualized and discussed in order to explain the differences in Board responses to changes in the external and internal corporate environment, and consequently corporate competitive sustainability. The three attributes could be taken as underpinning indicators of the Board dynamic capacity, so we have developed an index as a composite measure, consisting of these three key areas, in order to determine the Board dynamic capability. Though the field researches have already offered a range of tools aimed at measuring Board efficiency, the relevant literature is scarce regarding Board capabilities. By taking the attitude that the Board could be asserted as an empowering or weakening corporate resource and competitive potential, the Board capacity could be evaluated through capability perspective as the vital driver of corporate success, and consequently as a determinant of corporate performance. A Board capable of mastering the organizational level dynamic capabilities essentially demonstrates self-regulating capacity as the distinguishing, corporate governance specific facet.

Board Dynamic Capacity; Corporate Governance; Dynamic Capabilities

nije evidentirano