Exploring the political side of board involvement in strategy: A study of mixed-ownership institutions

Our article reports findings from a comparative study of strategic decision-making and board functioning in nine firms. Findings from our study indicate that the heterogeneity of interests represented in the board, members’ possession of relevant knowledge, and the presence of ex-ante conflict resolution mechanisms combine in shaping if and how board members engage in strategy-related activities and how strategic decisions are taken. Our findings extend current understandings about the strategic functions of the board (monitoring, advice, and resource-dependence), suggesting how, under certain conditions, boards may act as negotiation forums where directors search for a reconciliation between diverging shareholders’ interests and views.