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Article
Publication date: 28 November 2022

Siti Nurain Muhmad, Akmalia Mohamad Ariff, Norakma Abd Majid and Rusnah Muhamad

This paper aims to examine the association between corporate sustainability commitment and cash holding and whether the board’s leadership competency moderates the association.

Abstract

Purpose

This paper aims to examine the association between corporate sustainability commitment and cash holding and whether the board’s leadership competency moderates the association.

Design/methodology/approach

The sample consisted of Islamic banks in Malaysia from 2017 to 2019. The sustainability commitment was measured based on the dimensions of the economic, social and environment of the Sustainable Development Goals (SDG).

Findings

The sustainability commitment of the Islamic banks are low. The regression results are not supportive of the hypotheses on the association between corporate sustainability commitment and cash holding and the moderating effect of board’s leadership competency.

Research limitations/implications

The Islamic banks in Malaysia are still in their early stages to achieve the SDGs, but the trend of disclosure suggests that they are gradually embracing the commitment to sustainability practices. It is in support of the agency theory, with findings indicating greater agency cost that is perceived upon companies with greater sustainability commitments.

Originality/value

This paper integrates the dimensions of the SDG with the value-based intermediation guideline by Bank Negara Malaysia in measuring sustainability commitment of Islamic banks.

Details

Journal of Islamic Accounting and Business Research, vol. 14 no. 5
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 1 April 2003

Sheila Jackson, Elaine Farndale and Andrew Kakabadse

In a review of the literature, supported by six case studies, executive development for senior managers in public and private organisations is explored in depth. The study looks…

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Abstract

In a review of the literature, supported by six case studies, executive development for senior managers in public and private organisations is explored in depth. The study looks at the roles and responsibilities of the chairman, CEO, executive and non‐executive directors, the required capabilities to achieve successful performance, and the related executive development activity implemented to support these. Methods of delivery, development needs analysis and evaluation are explored in case organisations to ascertain current practice. A detailed review of the leadership and governance literatures is included to highlight the breadth of knowledge required at director level. Key findings of the study include the importance of focusing executive development on capability enhancement, to ensure that it is supporting organisational priorities, and on its thorough customisation to the corporate context. Deficiencies in current corporate practice are also identified.

Details

Journal of Management Development, vol. 22 no. 3
Type: Research Article
ISSN: 0262-1711

Keywords

Article
Publication date: 22 November 2023

Tom De Clerck, Leen Haerens, Delfien Van Dyck, Geert Devos and Annick Willem

Professionalization is an important issue in many all-volunteer nonprofit organizations (e.g. recreational sports clubs). Therefore, this study relied on the competing values…

Abstract

Purpose

Professionalization is an important issue in many all-volunteer nonprofit organizations (e.g. recreational sports clubs). Therefore, this study relied on the competing values framework and self-determination theory to investigate whether a newly developed intervention can effectively strengthen the management processes and leadership styles in all-volunteer sports clubs.

Design/methodology/approach

For this purpose, a rigorous non-equivalent pre-test post-test control group design was used. The intervention involved two sessions organized in sports clubs in which internal stakeholders (e.g. board members, coaches, volunteers) were invited to discuss change initiatives aimed at enhancing the organizational processes.

Findings

An effect on both the management processes and leadership styles was found. As for the management processes, the intervention had an impact on the internal processes, with especially the development of an internal communication plan and the annual assessment of the organization's operations being promoted by the intervention. Regarding the leadership styles, the intervention had an effect on the controlling and chaotic leadership style, with leaders becoming less chaotic and controlling in situations in which (respectively) the business plan was established and the tasks were distributed within the organization.

Originality/value

This intervention study adopted an innovative approach to organizational intervention research by focusing on the enhancement of both the management processes and the leadership styles. Its principles are also relevant and valuable to organizations operating in other organizational contexts.

Details

Journal of Organizational Change Management, vol. 37 no. 1
Type: Research Article
ISSN: 0953-4814

Keywords

Article
Publication date: 1 March 2003

Victor Dulewicz and Malcolm Higgs

The need for effective leadership has become paramount to meet the challenges of the 21st Century and a growing number of academics and senior managers have recently come to…

4628

Abstract

The need for effective leadership has become paramount to meet the challenges of the 21st Century and a growing number of academics and senior managers have recently come to recognize the importance of emotional intelligence (EI) for effective leadership. Furthermore, Goleman, Boyatzis, & McKee (2002) have contended that the higher up one advances in an organization, the more important EI becomes. In this paper the authors have focused on evidence at the very top of the organization, the Board. They review the findings from a major study of UK boards and re‐analyze the data on tasks and competencies relating to EI constructs. Their results show that EI competencies are considered to be extremely important according to the majority of a large sample of UK directors in a survey and they go on to argue that many of the tasks (outputs) of the Board require EI competencies, as well as many aspects of Team Process (for Organizing and Running the Board). The authors also produce new findings which support Goleman's hypothesis that the higher one advances, the more important EI becomes. Possible explanations for the findings are discussed and the paper concludes with a review of important current and future research such as the full integration of EI elements into instruments to assess leadership competence and style, and the effect that organization culture has on these constructs.

Details

The International Journal of Organizational Analysis, vol. 11 no. 3
Type: Research Article
ISSN: 1055-3185

Article
Publication date: 25 September 2007

Margaret M. Hopkins, Deborah A. O'Neil and Helen W. Williams

The purpose of this paper is to examine the relationship between emotional intelligence and effective board governance.

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Abstract

Purpose

The purpose of this paper is to examine the relationship between emotional intelligence and effective board governance.

Design/methodology/approach

This study applied a model of emotional intelligence competencies to the practice domains of school boards. A board self‐assessment questionnaire measured board practice domains for the presence or absence of 18 emotional intelligence competencies defined in an emotional competence inventory. Inter‐rater reliabilities were established and confirmed. Current and former school board members in two urban areas rank‐ordered the most critical emotional intelligence competencies for effective board governance and offered explanations for their most highly‐rated competencies.

Findings

Emotional intelligence is a critical factor for effective school boards. A set of six core competencies are universal across the six board practice domains: transparency; achievement; initiative; organizational awareness; conflict management; and teamwork and collaboration. Each board practice domain is also characterized by one or two key emotional intelligence competencies.

Research limitations/implications

First, one model of school board leadership was used. Future studies should examine additional models of effective board practice for their relationships with emotional intelligence in order to extend the generalizability of these results. Second, there has been some debate regarding the substantive nature of the emotional intelligence construct.

Practical implications

The six practice domains in the school board effectiveness model are fundamental elements for all boards to develop in order to become more effective governing bodies.

Originality/value

This paper identifies a novel application of emotional intelligence leadership competencies to the work of effective governance boards.

Details

Journal of Managerial Psychology, vol. 22 no. 7
Type: Research Article
ISSN: 0268-3946

Keywords

Abstract

Details

Competencies for Effective Leadership
Type: Book
ISBN: 978-1-78973-256-6

Article
Publication date: 6 June 2016

Karim S. Rebeiz

Boardroom’s effectiveness has emerged as an issue of considerable importance in the minds of academics and practitioners, particularly in the aftermath of the highly visible…

Abstract

Purpose

Boardroom’s effectiveness has emerged as an issue of considerable importance in the minds of academics and practitioners, particularly in the aftermath of the highly visible corporate governance scandals of the past few decades. The purpose of this paper is to shed new lights on this topic by proposing a robust design framework for boardroom’s effectiveness.

Design/methodology/approach

The interpretative investigation is based on semi-structured interviews administered to directors of Fortune 500 firms. The adopted thematic analysis is phenomenology, or the feelings, experiences and perceptions of events as depicted first hand by individuals with significant boardroom’s experience.

Findings

Two central findings could be construed from this investigation. First, the optimum boardroom’s configuration is not a universal proposition. In other words, there are no magic recipes, and no one-size fits all approach. Rather, the optimum boardroom’s configuration ought to be framed in light of the overarching needs of the firm in relation to the dynamic forces in the external environment. Second, the design of boardrooms ought to span beyond structural aspects (i.e. the outwardly visible aspects) to also encompass two largely unobserved boardroom’s phenomena, namely, the directorship personal trait factors and the directorship behavioral patterns.

Research limitations/implications

The findings presented herein may be contaminated with cognitive and personal biases, a common and unavoidable occurrence in qualitative research. A more integrative research approach using inductive and deductive techniques would allow for triangulation of results, thus providing an additional dose of validity and relevance to the research findings.

Practical implications

There has been a growing disenchantment about the modus operandi of the board of directors among practitioners, particularly as it pertains to large corporations with diffuse and heterogeneous shareholders and stakeholders. New design guidelines for the board of directors would directly impact on corporate practices.

Social implications

The design of high performance boardrooms is instrumental to shareholders, policymakers, directors, executives, rank and file employees, suppliers, customers and other direct and indirect stakeholders, as it may help avert future corporate governance mishaps.

Originality/value

As of today, the academic and popular literature has yet to provide unequivocal guidance for the development of high performance boardrooms. This study fills an important gap in the prevailing corporate governance literature by integrating both structural and socio-cognitive factors into the design framework of the board of directors.

Details

Corporate Governance, vol. 16 no. 3
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 16 May 2019

Wajdi Ben Rejeb, Sarra Berraies and Dorra Talbi

The purpose of this paper is to examine the link between board of directors’ roles namely strategy, service and control roles and ambidextrous innovation. This study also aims to…

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Abstract

Purpose

The purpose of this paper is to examine the link between board of directors’ roles namely strategy, service and control roles and ambidextrous innovation. This study also aims to determine whether the independence and gender diversity of boards have mediating effects in this relationship.

Design/methodology/approach

On the basis of a quantitative approach, the authors conducted a survey on all Tunisian-listed firms. A partial least square method was used to analyze the quantitative data. The authors also conducted semi-structured interviews with a sample of boards’ members of the surveyed firms followed by a thematic analysis of the discourses to discuss the results.

Findings

Results revealed that ambidextrous innovation is negatively linked to board’s control role. The outcomes of this research show also that ambidextrous innovation is positively associated with board’s service role and that the gender diversity moderates positively this link. Findings do not indicate a significant relationship between board’s strategy role and ambidextrous innovation but show evidence that the relationship is negatively moderated by independent directors, while positively moderated by gender diversity.

Originality/value

This research sheds light on the effects of Boards’ roles on ambidextrous innovation and the moderating effect of board’s gender diversity and independence as well. This paper addresses the gap in the literature as this thematic has not been studied, offering key insights with regard to corporate governance of companies looking to achieve ambidextrous innovation.

Details

European Journal of Innovation Management, vol. 23 no. 1
Type: Research Article
ISSN: 1460-1060

Keywords

Book part
Publication date: 19 July 2014

Sonia Moi, Fabio Monteduro and Luca Gnan

Recent literature on nonprofit boards of directors has extensively investigated the composition, role, responsibilities, and characteristics of boards. Given the growing number of…

Abstract

Purpose

Recent literature on nonprofit boards of directors has extensively investigated the composition, role, responsibilities, and characteristics of boards. Given the growing number of studies on nonprofit boards, which added new impulse to the debate on the role and characteristics of these players, it is time to analyze the state of the art and systematize the current knowledge. On the other hand, despite the presence of some literature reviews, a research comparing the debate among the nonprofit, private, and public sectors is still lacking. Using Gabrielsson and Huse’s (2004) framework, we wanted to identify factors that can influence research on nonprofit boards and compare our results with existing studies on private and public sector.

Methodology/Approach

We conduct a systematic literature review, selecting empirical articles published in international scientific journals from 1992 to 2012.

Findings

We found similarities and differences in relation to research on boards among sectors. As a common result, we found that evolutionary studies still remains a neglected area in all of three realms. Finally, whereas input–output studies prevail in the private sector and contingency studies prevail in the public sector, behavioral studies prevail in the nonprofit sector, demonstrating, also, that the sector itself can make a difference in the board’s research.

Research Limitations/Implications

This literature review provides some suggestion for further research on boards for all of three sectors. For example, we suggest complementing research on boards on all three sectors, especially in relation to evolutionary studies.

Originality/Value of Paper

This paper fills the need to clarify the status of research on nonprofit boards, in order to address scholars in the understanding of the phenomenon.

Details

Mechanisms, Roles and Consequences of Governance: Emerging Issues
Type: Book
ISBN: 978-1-78350-706-1

Keywords

Open Access
Article
Publication date: 28 October 2019

Rita Goyal, Nada Kakabadse and Andrew Kakabadse

Boards presently are considered the most critical component in improving corporate governance (CG). Board diversity is increasingly being recommended as a tool for enhancing firm…

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Abstract

Purpose

Boards presently are considered the most critical component in improving corporate governance (CG). Board diversity is increasingly being recommended as a tool for enhancing firm performance. Academic research and regulatory action regarding board diversity are focussed mainly on gender and ethnic composition of boards. However, the perspective of board members on board diversity and its impact is mostly missing. Moreover, while strategic leadership perspective suggests that a broader set of upper echelon’s characteristics may shape their actions, empirical evidence investigating the impact of less-explored attributes of diversity is almost non-existent. While the research on the input–output relationship between board diversity and firm performance remains equivocal, an intervening relationship between board diversity and board effectiveness needs to be understood. The purpose of this paper is to address all three limitations and explore the subject from board members’ perspective.

Design/methodology/approach

The paper presents the findings of qualitative, exploratory research conducted by interviewing 42 board members of FTSE 350 companies. The data are analysed thematically.

Findings

The findings of the research suggest that board members of FTSE 350 companies consider the diversity of functional experience to be a critical requirement for boards’ role-effectiveness. Functionally diverse boards manage external dependencies more effectively and challenge assumptions of the executive more efficiently, thus improving CG. The findings significantly contribute to the literature on board diversity, as well as to strategic leadership theory and other applicable theories. The research is conducted with a relatively small but elite and difficult to approach set of 42 board members of FTSE 350 companies.

Practical implications

The paper makes a unique and significant contribution to praxis by presenting the perspective of practitioners of CG – board members. The findings may encourage board nomination committees to seek board diversity beyond the gender and ethnic characteristics of directors. The findings may also be relevant for policy formulation, as they indicate that functionally diverse boards have improved effectiveness in a range of board roles.

Social implications

Board diversity is about building a board that accurately reflects the make-up of the population and stakeholders of the society where the company operates. The aim of board diversity is to cultivate a broad range of attributes and perspectives that reflects real-world demographics as boards need to continue to earn their “licence to operate in society” as organisations have a responsibility to multiple constituents and stakeholders, including the community and the wider society within which they exist. Building social capital through diversity has value in the wider context of modern society and achieving social justice.

Originality/value

The paper makes an original and unique contribution to strategic leadership theory by strengthening the argument of the theory. The paper explores beyond widely researched attributes of gender and ethnicity on boards and explores the impact of a less-researched characteristic of directors – their functional experience. Moreover, the paper opens the “black box” of CG – boards, and presents the perspectives of board members. The findings indicate that board members in FTSE 350 boards define diversity more broadly than academics and regulatory agencies often do.

Details

Journal of Capital Markets Studies, vol. 3 no. 2
Type: Research Article
ISSN: 2514-4774

Keywords

1 – 10 of 521