2021
DOI: 10.1108/jhom-04-2021-0137
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Fitting in as an outsider: a resource dependence theory approach to outside boards

Abstract: PurposeThis study draws on resource dependence theory (RDT) to explain a board's governance function in the United States (US) nonprofit healthcare industry. Specifically, while various nonprofit research studies have appealed to agency theory (AT) to explain the monitoring role of an outside board, RDT offers an alternative explanation that emphasizes an outside board's resource gathering role.Design/methodology/approachIn drawing on the nonprofit GuideStar database, a fixed effect (FE) panel estimation was c… Show more

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Cited by 6 publications
(2 citation statements)
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“…However, this may come at the cost of expert knowledge of the NGO's day-to-day work. These "outside" board members may not have experience within the international development sector, or their experiences may not match up with the mission of the NGO (Ng and Khodakarami 2022). Less is known about how the nationality and class backgrounds of board members shape how "outside" the organization they are.…”
Section: Nationality Class and Organizational Hierarchymentioning
confidence: 99%
“…However, this may come at the cost of expert knowledge of the NGO's day-to-day work. These "outside" board members may not have experience within the international development sector, or their experiences may not match up with the mission of the NGO (Ng and Khodakarami 2022). Less is known about how the nationality and class backgrounds of board members shape how "outside" the organization they are.…”
Section: Nationality Class and Organizational Hierarchymentioning
confidence: 99%
“…In this line, independent directors provide resources and facilitate links with other organizations (Rivas, 2012). For example, independent directors play a crucial role in developing external relationships that bring access to external resources (Ng and Khodakarami, 2022). Thus, the resource dependence theory supports that BIND is crucial to obtaining the resources necessary for the firm's survival (Potharla and Amirishetty, 2021).…”
Section: Board Independence and Systematic Riskmentioning
confidence: 99%