Exploring the Cognitive Nature of Boards of Directors and Its Implication for Board Effectiveness

In this paper we propose a theoretical framework that emphasizes the development of a shared mental model (SMM) of a board of directors and its impact on board effectiveness and suggest that the accuracy and scope of the SMM in a board will moderate the relationship between a board’s SMM and board effectiveness. Also, we examine the impact of task and relationship conflict on the development of a SMM. Finally, we examine three board attributes (board size, CEO duality, and the proportion of outside directors on a board) as antecedents to the development of conflict among board members.