Naslov
Responsibility of Board of Directors and Top Management Team in Crafting and Implementing Strategy

Autori
Gonan Božac, Marli ; Dragaš, Vesna ; Dragaš, Mirjana

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni

Knjiga
Toward Global Governance

Urednik/ci
Božina, Lovre ; Gonan Božac, Marli ; Krtalić, Sandra

Izdavač
Sveučilište Jurja Dobrile u Puli

Grad
Pula

Godina
2011

Raspon stranica
521-553

ISBN
978-953-7498-46-7

Ključne riječi
corporate governance, board of directors, TMT, strategic role, strategies, responsibilities

Sažetak
Over the past few decades, corporate governance systems have experienced profound changes. The globalization and liberalization of financial markets, corporate governance scandals and stronger demands for accountability and transparency have placed the role, duties and functioning of the boards of directors at the center of the corporate governance debate. The societal call for greater involvement of the board of directors discusses the appropriate role of the board (strategic leaders). This paper extends and contributes to the existing literature of corporate governance focused on researching the contribution of the board and top management team (TMTs) to the strategy of the company highlighting the emerging trends in research. The aim is to explore the strategic role, duties and responsibilities of the board and TMT in the strategy formulation and implementation that ensures a construct which allows an organization to succeed in today's dynamic environment. The intention is to analyze and determine all the relevant features for exploring the duties and responsibilities of boards and TMT and their contribution to strategy. Clear and well thought out strategy focuses managers on the right path and enables the company to acquire or retain competitive advantages. The paper responds to calls for a direct study of boards by focusing attention to the theoretical approach to the board and TMT responsibilities. The focus is on the role of the board and TMT, as well as their contribution to strategy. In the work the theoretical approach will be applied to investigate the relevance of the board and TMT responsibility for corporate strategy. The method of analysis and synthesis will be used in order to examine the importance of their duties. Also, for testing theoretically relevant aspects of the role of the board and TMT and their contribution to the strategy, the methods of induction and deduction will be used. By using content analysis we will describe and analyze the strategic functions and responsibilities of the board and TMT. The results have shown that when developing and implementing strategies and establishing the limits of the strategic action, the requirements of an effective strategic task should be taken into account. This paper will illustrate the board as a creator of the meaning and understanding of the environment, as well as its interpretation. In a dynamic environment, strategy is a strong component, and the responsibility of the board is to offer a coherent approach which enables the coordination of strategy, organization and environment. Because of the distances of its daily activities, the board may not have enough relevant information to make highly effective decisions in a changing and complex world. In fact, TMT is very informed. As a strategic leader, the board's responsibility is to provide an infrastructure which would allow the flow of information and knowledge throughout the organization.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA