Conceptualization of the Missing Link between Board Effectiveness and Entrepreneurial Orientation

With the notable incidents of corporate scandals took and taking place around the world, authorities turned the searchlight on the effectiveness of the board of directors as the fundamental internal governance mechanism rather focus only on basic governance compliance rules. On the other hand, it is inferred that the lack of innovativeness, risk-taking and proactiveness embedded in the operational processes may act as the reason for corporate failures in the world context. Therefore, by having a well-structured and effective board of directors', organizations will be able to align their vision, mission goals, objectives and strategies with entrepreneurial initiatives in achieving the sustainable competitive advantage with the support of management team of the company. The review of related extant literature indicates that a conceptual and an empirical gap exist in understanding on how the concept of Board Effectiveness and Entrepreneurial Orientation links with each other. Thus, the main objective of this study is to identify the conceptual link between Board Effectiveness and Entrepreneurial Orientation by taking into consideration of resource dependency theory and resource-based view of entrepreneurship. The study proposes a conceptual framework that aims to provide a better understanding of how Board Effectiveness links with Entrepreneurial Orientation. This study brings out new insights to the domain of Board Effectiveness and Entrepreneurial Orientation by providing a support for the link between two aspects, thus the board of directors and senior decision-makers requires to be acquire talents in being more innovative, proactive, competitively aggressive, risk-taking and autonomous in managing their companies in today's' turbulent environment