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One role is not big enough: a multi-theoretical study of board roles in SMEs

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  • Eythor Ivar Jonsson

Abstract

The purpose of this paper is to explore and verify roles of boards as bundle of tasks in the context of SMEs in a small country. This is a descriptive study based on the perceptions of CEOs. The objective was to find empirical evidence for what boards in small and medium sized companies perceive they do in terms of tasks and roles. A survey was sent out to 560 SMEs in Iceland and the response rate was 21%. Factor analysis shows that three different roles can be measured in SMEs: Monitoring role, Strategic role and Resource and Advice role. The results of this research show that boards in SMEs can and do have more than one role and are more active in strategy than often is assumed.

Suggested Citation

  • Eythor Ivar Jonsson, 2013. "One role is not big enough: a multi-theoretical study of board roles in SMEs," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 8(1), pages 50-68.
    • Handle: RePEc:ids:ijbget:v:8:y:2013:i:1:p:50-68
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    Cited by:

    1. Åberg, Carl & Bankewitz, Max & Knockaert, Mirjam, 2019. "Service tasks of board of directors: A literature review and research agenda in an era of new governance practices," European Management Journal, Elsevier, vol. 37(5), pages 648-663.
    2. Mislene Maria da Costa & Flávia Lorenne Sampaio Barbosa & Fabiana Pinto de Almeida Bizarria & João Carlos Hipolito Bernardes do Nascimento & Rogeane Morais Ribeiro & Maria do Socorro Silva Mesquita, 2023. "Determinants of Board Size: A Longitudinal Analysis with 194 Firms Listed on the B3 S/A," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 15(4), pages 1-60, April.

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