Board Effectiveness in Nonprofit Organizations: Do Interactions in the Boardroom Matter?

Abstract

This study explores how perceived interactions in the boardroom are associated with perceptions of board effectiveness in nonprofit organizations. The relationships between board chair leadership, board meeting practices, board group dynamics, and the perceived effectiveness of the board in several governance roles and responsibilities are investigated. The results show that interactions in the boardroom matter: they are generally positively associated with both board chairs’ and chief executives’ perceptions of board effectiveness. Based on these results, several practical implications are formulated for boards seeking to improve their effectiveness.

Effect of board- and firm-level characteristics on the product responsibility ratings of firms from emerging markets

“…Studies on corporate governance have examined corporate boards as a decision-maker or a workgroup (Forbes and Milliken, 1999;Carpenter and Westphal, 2001;Huse et al, 2009;Van Puyvelde et al, 2018). For example, Forbes and Milliken (1999) defined a work group as "intact social systems that perform one or more tasks within an organizational context" (Bettenhausen, 1991, p. 346) and the board of directors as a work group in the organizational setting.…”

Does Governance Sophistication Shape Philanthropy? A Longitudinal Analysis.

“…Brown (2007) argues that board development practices, such as selecting future board members, training new members and evaluating their performance, lead to a more competent board, which in turn positively contributes to the board's overall performance. In a more recent work, Puyvelde et al (2018) suggest the importance of spending time on building an effective board as a team. Gazley and Nichiolason-Crotty (2008) show that internal board dynamics such as learning and selfevaluation boost board performance.…”

“…While the literature recognizes the multiple dimensions of board governance, it also acknowledges the importance of resource development as a responsibility of non-profit boards (Young 2011). Previous research on non-profit organizations shows the relevance of board development practices and their positive effects on organizational performance (Brown 2007;Puyvelde et al 2018). Board development involves a vast array of activities from recruiting and training employees, monitoring their performance up to removing ineffective, unproductive board members (Herman and Renz 1999;Lee and Phan 2000).…”

Examining Individual Board Member Behaviors in Nonprofit Sport Governing Bodies

“…Measurement in nonprofit governance research is complex and complicated due to the nature of both the context and the variables involved (Ford & Ihrke, 2019; Van Puyvelde et al, 2018). As research on governance increasingly focuses more on topics such as board behavior, group dynamics, and leadership as opposed to structural elements like board size, this challenge is exacerbated (Gazley & Nicholson-Crotty, 2018).…”

“…The presumption that existing models of board behavior (e.g., Gabrielsson & Huse, 2004; Pye, 2004; Stiles, 2001) also describe individual board member behaviors is an example of an ecological fallacy which “wrongly infers relationships at the lower level based on either observations or analysis only at the higher level” (Slater et al, 2006, p. 378). While a meso analysis can identify group level behaviors such as board dynamics, individual behaviors are not captured from this meso perspective (Gazley & Nicholson-Crotty, 2018; Van Puyvelde et al, 2018). This research note differentiates board member behaviors and board behavior by identifying that individual behaviors are the actions of a single individual while board behavior refers to group action.…”