The strategic context of external network ties: Examining the impact of director appointments on board involvement in strategic decision making

This study examines how external network ties determine a board's ability t o contribute to the strategic decision making process. Although the simple number of director appointments to other boards does not affect board monit oring or advice on strategy, appointments that can provide directors with r elevant strategic knowledge and perspective do predict such involvement. In effect, the strategic context of social network ties, not simply the numbe r of ties, is an important influence on corporate governance.