Full Answer Section

Third, boards can help to improve the quality of decision-making. They can provide a forum for debate and discussion, and they can help to ensure that all of the options are considered before a decision is made.

However, there are also some potential downsides to increasing the board’s involvement in strategy formulation. First, it could lead to delays in decision-making. Boards can be slow to make decisions, and this could hinder the company’s ability to respond to changes in the market.

Second, it could lead to conflict between the board and the executives. If the board and the executives have different views on the company’s strategy, this could lead to conflict and make it difficult to implement the strategy.

Overall, the impact of the board’s increased involvement in the selection of strategies on a firm’s strategic competitiveness is likely to be mixed. There are both potential benefits and downsides to this approach.

In terms of evidence to support the position that boards should become more involved with the formulation of a firm’s strategies, there is some research that suggests that this can lead to improved decision-making. For example, a study by the Harvard Business Review found that companies with more active boards were more likely to make strategic changes that were successful.

However, it is important to note that this is just one study, and more research is needed to confirm these findings. Additionally, it is important to consider the potential downsides of increased board involvement before making a decision about whether or not to adopt this approach.