Resource Dependency Theory and the Inclusion of Foreign Nationals on the Board of Directors of Publicly Traded Chilean Companies: A Multi-case Study

• Main Author: Droll, Steven E.
• Format: Others
• Published: Digital Archive @ GSU 2013
• Subjects: Organizational Theory; Organizational Management; Board of Directors; Foreign Nationals; International Expansion Strategy
• Online Access: http://digitalarchive.gsu.edu/bus_admin_diss/21; http://digitalarchive.gsu.edu/cgi/viewcontent.cgi?article=1024&context=bus_admin_diss

European and US companies, who desire to expand from a domestic-oriented focus to a more international mind-set, must undergo significant organizational transformation. Whether the transformation results in the company becoming internationally oriented, a complete transnational organization or anywhere in-between, one of the key components in the transformation process is developing a strategy that is outwardly focused from its natural domestic markets. To develop and execute said strategy, the utilization of human capital resources might be required that the company itself may not possess. Literature review has supported the concept that when European or US companies incorporate foreign nationals on the Board of Directors (BOD), the development and execution of international expansion strategies will increase the probability of reaching their respective strategic objectives. However, literature research is silent as to whether the inclusion of foreign nationals on the BOD of South American companies would result in the comparable results as experienced by European and US companies. This research study will begin to explore if a broader set of theoretical concepts could be applied to publicly traded Chilean companies and through future studies to publicly traded South American domiciled companies. Through an engaged scholarship approach, Resource Dependency Theory will be utilized as the lens through which to present the theoretical and practical applications for the BOD of publicly traded Chilean-domiciled companies to consider when developing international expansion strategies outside of Chile.