A Grounded Theory Approach To The Impacts Of The Outside Directors’ Particularities Upon Decision Performance Of Board In State-owned Enterprises

The construction of board is an important strategy of state-owned enterprisegovernance reform. It is also the core element to improve the management level for thestate-owned enterprise and the only road to deepen state-owned enterprise reform. So theconstruction of board become the focus for the whole society. During the exploreprocedures for the state-owned enterprise reform, Outside Directors system has been alandmark decision, It brought a climax in research of corporate governance in China. Inoutside directors progress, the recruiting and selecting of the outside directors has beenan important foundation and key step. But the research hasn’t pay much attention to it, itresult in the worthless of the outside directors. So we try to answer these questions likethat how to recruit and select the outside director? Which individual trait will influent theboard and how to influent?To answer these questions, I chose the “Grounded Theory” as my research method,then I use the theory reduction and date reduction to locate the key problem, reviewliterature, interview and analyze date. We chose9state-owned enterprises,45directorsand managers to interview, and then we restore and analyze the date from the interviews.The next step was to get a series of high concepts and construct the model for theresearch. The result shows that the professional complementary, industry similarity andcharacter heterogeneity will influent the decision performance in the board with theenvironment variables and team communication. In theory, the research mends thebottleneck in empirical analysis which is hard to use in unlisted enterprises and providesthe theoretical assumption and research experience; In practice, we give somesuggestions for the outside directors program.