Contingent value of director identification: The role of government directors in monitoring and resource provision in an emerging economy

• Main Authors: ZHU, Hongjin, YOSHIKAWA, Toru
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2016
• Subjects: government director; identification; monitoring; resource provision; state-owned enterprise; Asian Studies; Organizational Behavior and Theory; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5054; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6053/viewcontent/ContingentValueDirectorIdentification_2015.pdf
• Institution: Singapore Management University

Although previous studies have explored the value of government directors, less attention has been directed at the antecedents of government directors' engagement in value-adding activities, such as managerial monitoring and resource provision. Drawing on social identity theory, we offer a novel model that specifies how a government director's dual identifications with the focal firm, and with the government individually and interactively affect his or her governance behavior. An investigation of government directors in China shows that their identification with the focal firm enhances monitoring and resource provision, while their identification with the government affects monitoring and resource provision differently. depending on the dominance of state ownership. The synergistic/substitutable effects between the two types of identification are contingent on state ownership and governance roles.