A Comparison of CEO and Director Perceptions of Board Involvement in Strategy

Abstract

The assessment of board involvement in the strategic management process relies on data from CEOs and board members, and empirical studies assess board activity by either combining the ratings of CEOs and directors or by sampling one group of respondents only. This research note reports on discrepancies found between CEO and director perceptions of board involvement in the strategic management of credit unions. Consensus scores measure the dispersion of opinion, and the scores are compared to outcome measures using stepwise TOBIT analysis, which is rarely used in management research but is appropriate for studies with clustering of dependent variables. Findings reveal that the level of agreement about the board's involvement in mission statement development is associated with board member satisfaction. However, increases in the level of agreement about the board's involvement in monitoring strategy implementation are found in organizations that have less favorable financial soundness ratings.