ABSTRACT
Research on boards has provided inconsistent findings between structural attributes and firm performance. The idea of a shared mental model (SMM) was originally introduced to account for the fluid, implicit coordination frequently observed in effective teams and to advance the understanding of how teams function in complex, dynamic, and ambiguous situations. A board's SMM is the extent to which the individual board members' mental models of corporate governance overlap regarding the board's tasks and processes. The chapter focuses on conceptualizing boards as teams and the key factors that measure board effectiveness. It deals with the development of propositions asserting the direct relationship between a board's SMM and board effectiveness, conflict as a predecessor to a board's SMM, and board attributes as antecedents to conflict in the board. The chapter concludes with a discussion of managerial implications, directions for future research, and limitations.
