Most organizations are governed and directed by the board of directors (BoD).
Therefore, the success of an organization is largely attributed to an effective
board as a significant component of the Corporate Governance (CG) mechanism.
The style of the BoD widely differs from one to another, because so many factors
influence their governing style such as their concern, ability, education, skill,
gender, age, experience, cultural environment and so on. Most of these factors
are considered as elements of intellectual capital. The differences in style
generally refer to two aspects: Extent of concern about the board functions
and the degree of board concern about interpersonal relationships. Parallel
to that, some scholars contend that the BoD can be categorized according to
strategic and financial controls. However, the phenomenon of an effective
board postulates that the functions and styles of the BoD are to be transformed
into comprehensive board functions and styles, which should entail components
of the Intellectual Capital (IC). Intellectual capital or intangible assets
that create a profit, is tacit and cannot be defined clearly. It is the combination
of different capitals or intangible assets within a firm. This study will utilize
four components of intellectual capital, namely, human, structural, relational
and spiritual that have effect on BoDs style. The outcomes of this study
represent the impact of intellectual capital components on the BoDs style
and performance, which will also eventually influence firm performance.
Majid Jamshidy, Saudah Sofian, Norkhairul Hafiz Bajuri and Mohammad Rahmani Karchegani, 2014. Influence of Intellectual Capital on the Board of Directors' Styles. Asian Journal of Applied Sciences, 7: 51-65.