Chairpersonship and Board Strategy Involvement in Small and Medium-sized Enterprises

Abstract

A critical issue when setting up a board of directors in small and medium-sized enterprises relates to the chairperson position. This study examines whether and how chairperson’s experience and leadership influence the extent to which the board of directors is involved in strategy. We rely on survey data from multiple respondents in 326 firms and use regression analysis to test our hypotheses. We find that chairpersons’ board experience and leadership efficacy have a positive and significant effect on boards’ involvement in strategy. Our findings provide ample support for the significance of chairperson behaviours in explaining board outcomes in firms.