The Board of Directors as a Team: Investigating the Influence of Shared Leadership on Board Task Performance

This theoretical paper aims to contribute to the promising stream of research which focuses on behavioural perspectives and processes within the corporate board, by delving into one of the research areas perhaps plagued most by the well-known methodological (i.e., input-output studies) and theoretical (i.e., agency theory) research fortresses of past board studies: board leadership. In adopting a team approach to the board of directors, our study goes beyond traditional board leadership research, which has turned a blind eye on actual leadership dynamics and has solely focused on structural leadership characteristics, by examining leadership processes and interactions inside the board team. Specifically, we develop a conceptual framework addressing a relatively novel team leadership conceptualization, i.e., shared leadership, which has been demonstrated to result in performance benefits in a wide range of team settings. Given that no individual is likely to possess all of the necessary capabilities to lead the board of directors to goal attainment in every instance imaginable, the key proposition this paper puts forward is that such a mutual and fluid influence process in which directors take on leadership roles in accordance with the unique competences they bring to the boardroom table will lead to a more efficient use of the resources and expertise present within the team, resulting in superior board control and service task performance. In the remainder of the framework, a number of board characteristics (i.e., CEO duality, board diversity and board size) which may hinder or promote the existence of shared leadership in a board context are elaborated upon, indicating that the way the team of directors is designed serves as an important determinant of its functioning. In sum, this paper adds to corporate governance literature by providing insight as to how actual leadership processes, instead of just leadership structure, come into play in board decision-making and consequently impact board effectiveness.