The dynamics of boards of directors in failing organizations

Research output: Journal PublicationArticlepeer-review

58 Citations (Scopus)

Abstract

There is a swell of opinion in the business media and academic literature that believes that boards of directors are partly to blame for recent failures. This article addresses two key questions: Why do often boards of directors fail to detect warning signals during the early stages of failure; and when they do detect warning signals, why do they tend to remain passive? The article aims to answer these questions through an in depth study of the collapse of HIH. It examines board dynamics over the different stages of failure. It identifies the special challenges that directors confront at each stage of failure and suggests initiatives the board should use to prevent or reverse failure.

Original languageEnglish
Pages (from-to)261-279
Number of pages19
JournalLong Range Planning
Volume38
Issue number3 SPEC. ISS.
DOIs
Publication statusPublished - Jun 2005
Externally publishedYes

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Finance
  • Strategy and Management

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