Ownership Structure and the Strategic Decision Process: A Comparative Case Study

Abstract

The article investigates the relationship between ownership structure and the role played by the board of directors in the strategic decision process. A comparative case study of strategic decision processes indicates that ownership concentration, the nature of shareholders' interests and the distribution of relevant knowledge affect the key functions performed by the board of directors, the involvement of the board in the different phases of the strategic decision process, and the most adopted decision mechanisms.

Key Words: board of directors, decision making, strategy formulation, politics, ownership structure

JEL Classification: M10