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Boardroom leadership: The board of directors as a source of strategic leadership

Author

Listed:
  • Castellanos Julio David

    (Universidad San Pablo de Guatemala, 4A Calle 23-03, de Guatemala)

  • George Babu

    (Fort Hays State University, 600 Park St., Hays, KS, USA)

Abstract

The aim of this paper is to bring together some of the foundational and recent literature interlinking corporate governance and the leadership role of the board of directors. Strategic leadership is widely assumed to be a responsibility that defaults to the Chief Executive Officers (CEOs). However, in practice, what most CEOs do is strategic management rather than strategic leadership. While strategic management does share key aspects of strategic leadership CEOs are expected to prioritize the managerial side over the leadership side. This is just one of the situations in which the board-room assumes the leadership role. This paper discusses how boards of directors conduct the process of strategic leadership in their organizations. In recent years there has been an increasing interest among scholars to understand how boards strategize from a behavioral point of view. This growing interest has resulted in the development of various typologies regarding boards’ involvement in the strategic leadership processes.

Suggested Citation

  • Castellanos Julio David & George Babu, 2020. "Boardroom leadership: The board of directors as a source of strategic leadership," Economics and Business Review, Sciendo, vol. 6(1), pages 103-119, March.
    • Handle: RePEc:vrs:ecobur:v:6:y:2020:i:1:p:103-119:n:5
    DOI: 10.18559/ebr.2020.1.5
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    References listed on IDEAS

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    More about this item

    Keywords

    board of directors; corporate governance; strategic leadership; agency theory; principal agent problem; stewardship theory; board typologies;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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