Corporate board of directors’ knowledge heterogeneity: a literature review and multi-domain research agenda

Abstract

In an era of digitalization, sustainability concerns, and environmental jolts, directors’ tasks become increasingly more demanding, particularly with regard to the breadth of knowledge that is required in the boardroom to guide informed decision making. This paper takes stock of the past 30 years of scholarship on board of directors’ knowledge heterogeneity to synthesize the field, uncovering the underlying theoretical assumptions and methodological considerations, and establish more broadly its contribution to the corporate governance literature. Through a systematic review, analysis, and synthesis of 137 articles published in leading business journals, we conceptualize knowledge heterogeneity in a corporate board setting, disentangle board knowledge heterogeneity effects, and model a comprehensive process of directors’ knowledge heterogeneity. To encourage scholars’ engagement with the topic in novel ways, we articulate several directions for further inquiry around owners-board-managers’ interactions and advance a multi-domain research agenda with an emphasis on group dynamics, knowledge transfer, and supra top talent management.