Boards’ Strategic Involvement: Some Evidence from Republic of North Macedonia

Abstract

Boards’ strategic involvement has been a prominent issue in the management literature, although the research on boards work and how board members fulfill their roles is limited. Therefore, the purpose of this study is to investigate how boards members in companies with one-tier and two-tier board systems understand the concept of boards’ strategic involvement and what determines boards’ members strategic involvement. For answering the defined research questions, we have designed a study that has two parts: qualitative and quantitative. The qualitative analysis has enabled us to develop two separate frameworks on boards’ strategic involvement for companies with one-tier board system and for companies with two-tier board system. The results from the quantitative analysis have shown that director’s participation in discussions, their knowledge and previous organization performances are statistically significant predictors of boards’ strategic involvement. The frameworks we have designed, as well as the regression model can be used in future research for broadening the academic understanding of the boards’ members role in strategy and their involvement in strategic decision making.