From Conflict to Counsel: The Interplay of Board‐TMT Cognitive Conflict, TMT Tenure, and Board Tenure on Board Advice Giving

We recognize the collaborative nature of board advice giving and investigate (1) how the level of cognitive conflict between boards and top management teams (TMTs) is associated with board advice giving and (2) how this relation is shaped by TMT tenure and board tenure.Using insights from a unique multi‐source dataset from 285 board members of 102 Dutch financial firms, we find that TMT tenure and board tenure both moderate the relation between board‐TMT cognitive conflict and board advice giving. In addition, when considering the combined moderating effect of TMT tenure and board tenure, we find that board‐TMT cognitive conflict is most positively (negatively) associated with board advice giving when TMT tenure is low (high), while board tenure is high (low).Our work complements prior work by integrating insights from group research and resource dependence theory. It provides a nuanced view on the link between board‐TMT cognitive conflict and board advice giving. We highlight that the way cognitive conflict translates into board advice depends not only on the TMT's receptiveness to board challenge but also on the board's in‐depth understanding of organizational affairs.Our work points out that boards taking a critical stance may backfire if boards do not “measure up” to TMTs' organizational experience. We contest that longer‐tenured boards are ill‐equipped to provide critical advice and highlight the crucial role of TMT tenure therein. As such, policymakers and organizations should consider the combined impact of TMT tenure and board tenure when trying to stimulate that boards effectively challenge management.