The Influence of an Ownership Strategy on Board Dynamics

Gudrun Erla Jonsdottir*, Audur Arna Arnardottir, Throstur Olaf Sigurjonsson, Thomas Poulsen

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review


Ownership strategy is a governance mechanism formulated to reach consensus between owners on how to direct their organization towards value creation. Once implemented within an organization, questions arise as to how the ownership strategy influences board dynamics, board decision-making, and, if the company’s governance improves as a result. These important questions are addressed in this study by means of a theoretical discussion and empirical case-based research. This approach looks at how an ownership strategy influences board dynamics as defined by the intellectual capital framework by Nicholson and Kiel (2004). Results of the study suggest that an ownership strategy influences board dynamics and affects board decision-making through board procedures and norms. The results suggest a positive association between board dynamics and an ownership strategy as it creates a clearer framework for decision-making. This study contributes by developing the concept of ownership strategy and explores its influence on board dynamics and decision-making. Given the results, company owners and corporate governance practitioners should consider ownership strategy as a possible governance mechanism to align owners with their board of directors. Policymakers, business owners, and directors interested in promoting long-term governance models can benefit by contemplating the role of an ownership strategy within organizations.
Original languageEnglish
JournalJournal of Management & Governance
Number of pages29
Publication statusPublished - 20 Nov 2023

Bibliographical note

Epub ahead of print. Published online: 20 November 2023.


  • Ownership heterogeneity
  • Ownership strategy
  • Board of directors
  • Board intellectual capital framework
  • Board dynamics
  • Structural capital
  • Board decision-making

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