Evaluating Board Work for Innovation. : Towards an Analytical Framework.

Abstract: There is an increased need for innovation activities in companies today due to mounting pressure from external factors increasing the urgency for renewal and agility. Digitalisation of processes, products and services sets completely new requirements for competence but also changes the value creation and competitiveness. In recent years, management focus has shifted from optimization of production processes, logistics and supply chains, to being more oriented towards an innovation focus, promoting business renewal and innovative business models. The purpose of this study is to examine how board evaluations are used to improve board work and to study how well boards guide the innovation ambitions of their companies. Furthermore, the aim of this study is to develop a framework that can provide a holistic perspective of both control and strategic innovation aspects. Results from a comprehensive literature review and analysis of board evaluation data indicate that there is a lack of innovation inclusion in board evaluations and a clear lack of statistical approach when constructing surveys. The result of the study is a proposed framework that provides guidance for designing an innovation inclusive board evaluation tools and recommendations for providing actionable insights to clients, backed up by statistical models such as regression analysis and consistency analysis that has the possibility to scale into a digital assessment tool.