THE INDUCTION OF BOARD DIRECTORS: A CASE STUDY PERSPECTIVE

This paper gives an overview on the induction process for board members with a focus on the Italian context. First, considering the limited prior academic literature, we contribute to the understanding of the induction term. We propose a multilevel theoretical framework that synthesizes and integrates the poor and contrasting prior literature on the definition and the attendees of the program. We posit that the process is intended for all the appointed directors as it is tailored and specific of each company, due to the peculiar environment in which the firm operates. Second, we investigate how these programs are designed and how they can be beneficial for a company. Using a multiple case study on five Italian listed companies, we support the view that induction programs are a fundamental tool to assure that each director fully contributes with his own human and social capital to the board meetings in the shortest possible time, thus guaranteeing a positive impact on the value creation. Instead, in order to increase future directors’ knowledge, pre-appointment preparation courses are particularly relevant.