Boards of directors and firm innovation: toward a contingency perspective on board effectiveness

The article explores the effects of the boards of directors construct on firm innovation from the theoretical perspective of decision making groups. It examines how the board of directors, which functions as a decision making group, influences a firm's conduct. The contingency view on boards and innovation is applied, with an argument about how a contingency perspective may help clarify the effects of board features on organizational outcome. The situational efficacy of board characteristics in different organizational settings is addressed. Understanding of the effects of board characteristics and of the context-dependent nature of corporate governance are also considered.