AIB 2012 Conference Proceedings - Academy of International ...

MONDAY
governance practices. (For more information, please contact: Anthony Paul Cannizzaro, George Washington
University, USA: tony_c@gwmail.gwu.edu)
A Contingency Perspective on the Effect of Board Capital on Organizational Learning: Cross-National Evidence
from the UK & German Pharmaceutical Industry
Mariano L.M. Heyden, Erasmus University
Jana Oehmichen, Georg-August University Göttingen
In this study we view directors as active participants in strategy making and examine the effect of board capital
diversity on organizational learning orientation (exploration versus exploitation). We argue that the influence of
board capital on organizational learning orientation is contingent on how different governance models facilitate
integration of director's knowledge resources in strategy-making. We propose a contingency model by
highlighting the influence of different cross-national board structures on the relation between board capital and
organizational learning. Drawing on the distinction between the Anglo-Saxon (one-tier) and Rhineland (two-tier)
model in the UK and Germany respectively, we test hypotheses on a panel of firms in the pharmaceutical
industry from 2005-2009. Our pattern of findings suggests that though board capital diversity matters more
generally for firm-level organizational learning orientation, the crux for harnessing the value of board capital for
different learning orientations may rest in how country-specific board structures enable or constrains the actual
realization of value out of board capital. We discuss implications for theory and practice. (For more information,
please contact: Mariano L.M. Heyden, Erasmus University, Netherlands: mheyden@rsm.nl)
Remuneration Systems of the Management Board and Corporate Governance Reporting - Evidence from Austria
Karina Sopp, University of Vienna
Josef Baumueller, University of Vienna
In this paper the interaction between financial reporting, especially based on national codes of corporate
governance, and management control systems is analyzed, with focus on the devel-opment of both disclosure
and design of the compensation of the members of the management board. National corporate governance
codes provide principles of remuneration systems of the management board. Variable remuneration
components are of considerable importance for such designs of compensation systems. Regularly the calculation
of the variable components is linked to corporate management target systems, and thus is based upon internal
management control systems. Also, the reporting requirements are functional for the aims of management
control systems. This interaction is analyzed based on the annual reports (for the financial years 2006-2010) of
the companies listed in the ATX on the Vienna Stock Exchange. We obtain the following results: disclosure of
management remuneration has considerably increased in scope, although most of the underlying rules are
based on self-regulation. Also the quality of the applied designs of compensation systems has improved. Deficits
are found regarding the chosen assessment bases for variable components. (For more information, please
contact: Karina Sopp, University of Vienna, Austria: karina.sopp@univie.ac.at)
Session: 2.3.6 - Competitive
Track: 5 - MNC Management and Organization
Connections and Relationships in International Business
Presented On: July 2, 2012 - 13:00-14:15
Chair: Jaeyong Song, Seoul National University
AIB 2012 Conference Proceedings
Page 148