* Corresponding author. Tel: + 216 74 680 460
E-mail address: fadhila.hamza@yahoo.com (F. Hamza)
© 2016 Growing Science Ltd. All rights reserved.
doi: 10.5267/j.ac.2015.12.007
Accounting 2 (2016) 11–30
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Accounting
homepage: www.GrowingScience.com/ac/ac.html
The role of board independence on R&D investment’ choice decided by committed managers:
The cognitive management of executives’ discretion
Fadhila Hamza
a*
and Anis Jarboui
b
a
Phd Student in Finance and Accounting Methods, University of Sfax, ISAAS 3018,Tunesia
b
Doctor and HDR financial and accounting, Associate Professor of Universities, Higher Institute of Business Administration (ISAAS), University of
Sfax, Tunesia
C H R O N I C L E A B S T R A C T
Article history:
Received June 5, 2015
Received in revised format
August 16 2015
Accepted December 21 2015
Available online
December 24 2015
This study deals with appreciating the role of both governance system and executives cognitive
and attitudinal aspects in the innovation decision-making. After discussing the theoretical
relationship between board independence and CEOs attitude and behavior, we are advancing
an empirical model testing the correlation between the managers’ attitude and behavior towards
innovation and his psychological commitment level. The CEOs commitment bias and attitude
constituent were measured using questionnaire. The data analysis was performed using the
Bayesian network method on 220 Tunisian executives. Empirical results confirm the
theoretical prediction and shows that processing with persuasive mechanism does not have an
effective role on the alignment of the manager’s attitude and behavior in key tasks such
innovation decision. CEOs authentic behavior was more related to an important manager
involvement in this behavior rather than to persuasive effort committed by outside directors to
make him contract this action. CEOs attitude and behavior towards innovation are shown
related to commitment link “manager-task” and suggests that the board of directors plays no
role in the CEOs discretion management. We argue that persuasive approach is not a sufficient
path in behavior and interests alignment; yet, it should be applied with the commitment
approach for understanding manager decision-making.
Growing Science Ltd. All rights reserved. 6 © 201
Keywords:
Commitment Bias
Board Independence
Innovation Decision
Managerial Discretion
Bayesian Network Methods
1. Introduction
Innovation, as managerial decisional latitude, which requires optimistic attitude, long term horizon
(James, 1999), risk-taking culture (Olivero & Jarboui, 2006), overconfidence (Chen et al., 2011) and
specific expertise (Musteen et al., 2006), was managed, for a long time, through ensuring persuasive
communication using discipline, motivation, empowerment, and by building structure that enhance
learning. Many researchers address the problematic that what makes some executives more willing to
initiate innovation as compared to other executives (Chouaibi & Affes, 2010; Ata & Jabeen, 2011).
Although, researchers and theorists who are interested in evoking the human inventiveness in initiating