Hypothesis Testing based on Correlation Analysis

Based on the correlation findings discussed in previous section and presented in Table 7.2, an initial hypotheses testing can be provided. As such, Table 7.3 summarises the propositions and relative hypotheses made in Chapter 3, by showing whether they are fully, partially or not supported. Furthermore, the section following will provide the results from the multiple regression analysis. The hypotheses provided below are the alternative (H₁) and they appear to be supported when the null hypothesis (H₀) is rejected.

Table 7.3 Hypotheses Testing Based on Correlation Analysis

Propositions Hypotheses Result

PA1: Board Control is related to environmental complexity. Not supported

HA1a: Controlling CEO is positively related to environmental complexity. Not supported HA1b: Controlling TMT is positively related to environmental complexity. Not supported HA1c: Seeking internal information is positively related to environmental complexity. Not supported

PA2: Board Control is related to environmental dynamism. Partially supported

HA2a: Controlling CEO is positively related to environmental dynamism. Not supported*

HA2b: Controlling TMT is positively related to environmental dynamism. Not supported*

HA2c: Seeking internal information is positively related to environmental dynamism. Not Supported

PA3: Board Control is related to environmental munificence. Not supported

HA3a: Controlling CEO is positively related to macro-environmental hostility. Not supported HA3b: Controlling TMT is positively related to macro-environmental hostility. Not supported HA3c: Seeking internal information is positively related to macro-environmental hostility. Not supported HA3d: Controlling CEO is positively related to competitive hostility. Not supported HA3e: Controlling TMT is positively related to competitive hostility. Not supported HA3f: Seeking internal information is positively related to competitive hostility. Not supported

PA4: Board Control is related to various board characteristics. Partially supported

HA4a: Controlling CEO is negatively related to board size. Supported

HA4b: Controlling TMT is negatively related to board size. Supported

HA4c: Seeking internal information is positively related to board size. Not supported

HA4d: Controlling CEO is lower when there is CEO duality. Supported

HA4e: Controlling TMT is lower when there is CEO duality. Not supported HA4f: Seeking internal information is lower when there is CEO duality. Not supported HA4g: Controlling CEO is positively related to the ratio of independent directors. Supported HA4h: Controlling TMT is positively related to the ratio of independent directors. Supported HA4i: Seeking internal information is positively related to the ratio of independent directors. Not supported

HA4k: Controlling TMT is positively related to frequency of meetings. Not supported HA4l: Seeking internal information is positively related to frequency of meetings. Not supported

PA5: Board Control is related to respondent’s status in board. Partially supported

HA5a: Controlling CEO is higher when respondent’s status is independent. Supported HA5b: Controlling TMT is higher when respondent’s status is independent. Supported HA5c: Seeking internal information is higher when respondent’s status is independent. Not supported HA5d: Controlling CEO is positively related to the respondent’s tenure in board. Not supported HA5e: Controlling TMT is positively related to the respondent’s tenure in board. Not supported HA5f: Seeking internal information is positively related to the respondent’s tenure in board. Not supported

PB1: Resource Provision is related to environmental complexity. Partially supported

HB1a: Providing Service is positively related to environmental complexity. Not supported*

HB1b: Controlling external contingencies is positively related to environmental complexity. Not supported

PB2: Resource Provision is related to environmental dynamism. Not supported

HB2a: Providing Service is positively related to environmental dynamism. Not supported HB2b: Controlling external contingencies is positively related to environmental dynamism. Not supported

PB3: Resource Provision is related to environmental munificence. Not supported

HB3a: Providing Service is positively related to macro-environmental hostility. Not supported HB3b: Controlling external contingencies is positively related to macro-environmental

hostility.

Not supported HB3c: Providing Service is positively related to competitive hostility. Not supported HB3d: Controlling external contingencies is positively related to competitive hostility. Not supported

PB4: Resource Provision is related to various board characteristics. Partially supported

HB4a: Providing Service is positively related to board size. Not supported HB4b: Controlling external contingencies is positively related to board size. Not supported HB4c: Providing Service is lower when there is CEO duality. Not supported HB4d: Controlling external contingencies lower when there is CEO duality. Not supported HB4e: Providing Service is positively related to the ratio of independent directors. Not supported HB4f: Controlling external contingencies is positively related to the ratio of independent Supported

directors.

HB4g: Providing Service is positively related to frequency of meetings. Not supported HB4h: Controlling external contingencies is positively related to frequency of meetings. Not supported PB5: Resource Provision is related to respondent’s status in board. Partially supported

HB5a: Providing Service is higher when respondent’s status is independent. Not supported HB5b: Controlling external contingencies is higher when respondent’s status is independent. Not supported*

HB5c: Providing Service is positively related to the respondent’s tenure in board. Not supported HB5d: Controlling external contingencies is positively related to the respondent’s tenure in

board.

Supported

PC1: Strategic Involvement is related to environmental complexity. Supported

HC1a: Strategic Involvement is positively related to environmental complexity. Supported

PC2: Strategic Involvement is related to environmental dynamism. Not supported

HC2a: Strategic Involvement is positively related to environmental dynamism. Not supported

PC3: Strategic Involvement is related to environmental munificence. Not supported

HC3a: Strategic Involvement is positively related to macro-environmental hostility. Not supported HC3b: Strategic Involvement is positively related to competitive hostility. Not supported PC4: Strategic Involvement is related to various board characteristics. Partially supported

HC4a: Strategic Involvement has an inverted-U relationship with board size. Not supported HC4b: Strategic Involvement is lower when there is CEO duality. Not supported HC4c: Strategic Involvement is negatively related to the ratio of independent directors. Not supported HC4d: Strategic Involvement is positively related to frequency of meetings. Supported PC5: Strategic Involvement is related to respondent’s status in board. Not supported

HC5a: Strategic Involvement is higher when respondent’s status is independent. Not supported HC5b: Strategic Involvement has an inverted-U relationship with the respondent’s tenure in

board.

Not supported

*Opposite relationship found