Type

Journal Article

Authors

John Redmond
Collette E. Kirwan
Niamh Brennan

Subjects

Business

Topics
knowledge management corporate governance non executive directors board processes board accountability information asymmetry board of directors design methodology

Accountability Processes in Boardrooms: A Conceptual Model of Manager-Non-Executive Director Information Asymmetry (2016)

Abstract Purpose: Understanding the influence of information and knowledge exchange and sharing between managers and non-executive directors is important in assessing the dynamic processes of accountability in boardrooms. By analysing information/knowledge at multiple levels, invoking the literature on implicit/tacit and explicit information/knowledge, we show that information asymmetry is a necessary condition for effective boards. We introduce a conceptual model of manager-non-executive director information asymmetry as an outcome of our interpretation of information/knowledge sharing processes amongst board members. Our model provides a more nuanced agenda of the management-board information asymmetry problem to enable a better understanding of the role of different types of information in practice. Design/methodology/approach – Our analysis of information/knowledge exchange, sharing and creation and the resultant conceptual model are based on the following elements: (i) manager-non-executive director information/knowledge, (ii) management-board information/knowledge and (iii) board dynamics and reciprocal processes converting implicit/tacit into explicit information/knowledge. Findings – Our paper provides new insights into the dynamics of information/knowledge exchange, sharing and creation between managers and non-executive directors (individual level)/between management and boards (group level). We characterise this as a two-way process, back-and-forth between managers/executive directors and non-executive directors. The importance of relative/experienced "ignorance" of non-executive directors is revealed, which we term the "information asymmetry paradox". Research implications – We set out key opportunities for developing a research agenda from our model based on prior research of knowledge conversion processes and how these may be applied in a boardroom setting. Practical implications – Our model may assist directors in better understanding their roles and the division of labour between managers and non-executive directors from an information/knowledge perspective. Originality/value – We apply Ikujiro Nonaka’s knowledge conversion framework to consider the transitioning from individual implicit personal to explicit shared information/knowledge, to understand the subtle processes at play in boardrooms influencing information/knowledge exchange, sharing and creation between managers and non-executive directors.
Collections Ireland -> University College Dublin -> Business Research Collection
Ireland -> University College Dublin -> College of Business

Full list of authors on original publication

John Redmond, Collette E. Kirwan, Niamh Brennan

Experts in our system

1
John Redmond
University College Dublin
Total Publications: 3
 
2
Collette E. Kirwan
University College Dublin
Total Publications: 5
 
3
Niamh Brennan
University College Dublin
Total Publications: 106