The minds of the board of directors: the effects of formal position and informal networks among board members on influence and decision making

Examining board of directors’ decision making in case studies of CEOs and board members in four US companies, we found that an “inner board” of directors and CEOs linked by network ties outside of board meetings contained the most influential board members who also shared cognitions about problems. This informal network of ties was affected by the formal governance structure of the board. Strong ties in the informal network led to shared cognitions on the board, demonstrating a link between the formal and network positions of board members and their decision making. Copyright Springer Science+Business Media New York 2015