The Ability Of The Board Of Directors And Corporate Strategy Change

In recent years, Strategic change and its related theories have always been strategic management’s hot topics. As the core of corporate governance, the board which has a great impact on strategic change has drawn increasing attention of scholars. Most scholars explore the relationship of board and strategic change just focusing on board structure and its characteristics. However, the conclusions have some inconsistencies. Therefore, Just from a single dimension of these board characteristics is not sufficient to explain the relationship between the board of directors and strategic change. And for a transition period of domestic enterprises, obtaining and making use of resources are affected by the importance of informal institution, especially the influence of the external network, the external network can help companies achieve the resource needed by strategic changes, thus affecting the enterprise strategic decision. And we need to pay more attention to the dimension of the board affecting enterprise to obtain resources. From the perspective of the resource dependence theory and dynamic capability theory, we research the relationship between the board of directors ability (including professional skills and the ability to relationship), proposed by Wang Pengfci and Zhou jian (2011),and strategic change.By combing literatures, we found that researches in this area focused on the main listed companies. SMEs’ study is relatively few. This paper first reviews the strategic change theories and the Board theories. According to the concept of board capability variables proposed by Wang Pengfei and Zhou (2011), we use this concept to explore the relationship between board capability and strategy changes and choose CEO power as adjust variable. Then we select the Shenzhen Stock Exchange market,"SME board" and "GEM" SMEs as samples, and we use EXCEL and SPSS17.0to analyse the acquired sample data. Finally, according to test results of the analysis in this paper, we constructed the theoretical model and the basic assumptions, and obtained the following conclusion:that affect the ability of the Board of Directors Board of Directors participating companies an important factor in strategic decision-making. Professional competence and ability of the Board of Directors on strategic change in the relationship has a positive impact, and the Board of Directors CEO power negatively regulates professional competence and strategic relationship between changes, but the ability of the board of directors and strategic changes in the relationship between no obvious regulatory roles. Through the theoretical analysis and empirical test, we hope to exert positive effects on the SMEs board construction and promote the strategic transformation.