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The InBoard Emotional Contagion Model. Chapter 6
in Research on Emotion in Organizations. Vol12: Emotions and Organizational Governance Emerald 2016 - 143-167 P.
Purpose The quality of strategic decisions made at the helm of corporations matters a great deal. Predominantly, research on strategic decision-making has focused on CEOs as if they decide alone. Yet in reality, even the most powerful CEO makes strategic decisions together with an executive board. This chapter offers a theoretical explanation of strategic board decision-making through the emotional contagion between the CEO and board members. Methodology/approach We used both previous research
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and qualitative material – two case studies and interviews with several dozen CEOs of large corporations as well as the board members of one of them – to build our theoretical model. Findings Our inBoard Emotional Contagion Model (inBECM) specifies the following individual–collective emotional dynamics: After a strategic affective event has triggered an affective discussion within the boardroom, the emotionally intelligent CEO communicates verbally in order to – through an emotional contagion – homogenize board members’ emotional states leading to shared sense-making of the event and – potentially – to improved decision-making. Research/ Social/Practical implications Suggestions are made for the inBECM contribution to emotion theory. Implications are stated for the key role of emotion in improving board decision-making and strategizing.
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