The technostructure gap: the educational qualifications of executive and non-executive directors

Phillips, Peter J. and Cotter, Julie (2010) The technostructure gap: the educational qualifications of executive and non-executive directors. Corporate Ownership and Control, 7 (4). pp. 102-113. ISSN 1727-9232

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The purpose of this paper is to investigate the educational qualifications and experience of executive and non-executive members of directorial boards in Australia. Inspired by Galbraith's (1967) analysis of the technostructure, we examine the educational qualifications of managerial (executive) directors and non-executive directors to assess the extent of divergences in the relevance (to the company's operations) of executives' and non-executives' educational qualifications. In addition, we measure the 'relatedness' of executives' and non-executives' educational qualifications to determine the extent to which the set of educational qualifications of executive directors diverges from that of non-executive directors. We find significant differences in the relevance of the educational qualifications possessed by executives and non-executives. We also find very low relatedness between the two sets of educational qualifications. The advantages of board diversity on the one hand and the disadvantages that may attend potentially sub-optimal technical information flow on the other are discussed.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: No evidence of copyright restrictions preventing deposit.
Faculty / Department / School: Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited: 23 Aug 2010 00:26
Last Modified: 04 Mar 2015 06:40
Uncontrolled Keywords: technostructure; CEO; board of directors; education; qualifications
Fields of Research : 13 Education > 1301 Education Systems > 130103 Higher Education
14 Economics > 1402 Applied Economics > 140209 Industry Economics and Industrial Organisation
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150310 Organisation and Management Theory
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970114 Expanding Knowledge in Economics

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