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Informal Interactions Outside the Boardroom: Impact on Board Effectiveness

Fanuel, Céline
(2017)

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Fanuel_21171200_2017.pdf
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Details

Supervisors
Sarens, Gerrit
Faculty
Louvain School of Management
Degree label
Master [120] en sciences de gestion
Abstract
This thesis aims to grasp the extent to which directors’ informal interactions impact board effectiveness. Due to the little literature over the subject matter, the main objective was to gain insights by exchanging with board members. Therefore, this study is split in three parts. The first section aims at covering literature, mainly by identifying board’s limits and how authors suggest countering them. This results in a large recourse to social and psychological studies over group dynamics. In the second section, an analysis of Volkswagen’s failure was realised. This enabled to grasp the extent to which members’ informal interactions could have participated in the company’s failure. In the third section, further insights were gained by conducting interviews with eleven board members. Questions were drafted based on the first section. This led to an attempt of portraying conclusions on the subject and conceiving future studies.