No full-text available
To read the full-text of this research,
you can request a copy directly from the authors.
Board effectiveness and school performance: a study of Australian independent schools
Abstract
This study examines whether board diversity, board practices, and principal influence over board decisions impact board effectiveness across independent schools in Victoria, Australia, and to what extent board effectiveness is associated with academic and financial performance of the schools. Analyses were based on survey data from board Chairs and board members within independent schools. Results show that diversity of board composition and board practices contribute to increased board effectiveness, whereas board effectiveness is less robust in schools with stronger principal influence over board-level decision making. The results provide an indication that while some board attributes (i.e., diversity of board composition and board practices) indirectly influence school performance through their positive association with board effectiveness, excessive influence of the principal over board-level decisions may impair board effectiveness.
... Studies that highlight the dynamics and relationship between school boards and the school leadership are "essential to education quality" (Honingh et al, 2020). Board effectiveness has been defined as "the board's ability to effectively perform its control and service tasks" (Heeskerk, 2021) cited in Loh et al (2021) and "the board's capacity to fulfil its role effectively" (Loh et al, 2021). The main mission of school governance is oneto enhance the academic output and achievement of the schools they serve (James Svara, 1990 cited by Ford and Ihrke, 2016). ...
... Studies that highlight the dynamics and relationship between school boards and the school leadership are "essential to education quality" (Honingh et al, 2020). Board effectiveness has been defined as "the board's ability to effectively perform its control and service tasks" (Heeskerk, 2021) cited in Loh et al (2021) and "the board's capacity to fulfil its role effectively" (Loh et al, 2021). The main mission of school governance is oneto enhance the academic output and achievement of the schools they serve (James Svara, 1990 cited by Ford and Ihrke, 2016). ...
... This is relevant because board task conflicts might occur when school boards are not able to take a critical stance towards the managers (Heemskerk, 2020). Loh et al. (2021) explain that principals may inform boards' decision making through their educational expertise; however, excessive influence on board decisions may interfere with board accountability and impair the board's monitoring and advising functions. We also explore which perceptions of accountability exists between the board and the principal and whether "shared accountability perceptions" have been developed and crystallized to enhance school performance through "interactivity." ...
This research examines how perceptions of shared accountability for performance arise in a context of role expectations and interpersonal exchanges. We use the education context to view accountability as involving elements of board's and management's role expectations, history of their relationship, and leadership governance mechanisms. Using Frink and Klimoski's accountability role theory model, we explore governance roles, accountability practices, and school performance. We analyze interview data related to board chairs, board members, and principals/heads of Australian independent schools. We find that role expectations as well as the interpersonal exchanges (i.e., board/chair–principal relationship) shape accountability perceptions regarding school performance. The findings offer insights into the links between role expectations, interpersonal factors, and accountability practices. We point to the need of having a shared accountability model between the board and the principal, which may lead to improvement in performance within the school context.
The increased diversity and autonomy of schools calls for a more professional approach to school governance. In response, attention has been directed to the structure of school boards in the Netherlands. However, previous research indicates that the effectiveness of governance is not so much about structure as it is about behaviour. Conflict, in particular, appears to be an important underexposed factor in the effective behaviour of school boards. In a longitudinal research design, a survey using Likert‐scale items was distributed in 2016 and 2017 to executive directors of schools in the Netherlands to gauge their assessment of conflicts within the supervisory school board. Hierarchical regression analyses and moderator analyses were used to test the hypotheses. An increase in task‐related conflicts were found to have a clear positive effect on the task performance of supervisory boards. An increase in numbers of relational conflicts had a negative effect on the control task performance, while an increase in process‐related conflicts had a negative effect on the advisory task performance. The cohesion within a supervisory board proved to be an important moderator of the effect of task‐related conflicts and relationship conflicts on the control task performance. The results from this research underline the need for a multidimensional conceptualisation of conflict in supervisory boards. The need for further research on the interaction between cohesion and conflicts is underscored. Boards should make room for substantive debate and even for the inevitable friction and irritation that is sometimes inherent in being effective in managing schools.
This article aims to clarify the effects of conflicts on the task performance of supervisory boards in education. Management studies on conflicts on corporate boards sometimes find a positive effect and sometimes a negative effect on the performance of boards. These mixed findings are considered a result of the triggering of harmful personal conflicts through disagreements about process and content within boards. In order to gain more insight into the complex ways in which conflicts influence the effectiveness of supervisory boards in education, a multidimensional operationalisation of conflict has been designed, in which three different types of conflict – task, process and relationship conflict – are distinguished. Chairs of the executive boards of schools in the Netherlands (N = 300) were questioned via a survey on various conflict dimensions and their supervisory board’s task performance. The results of hierarchical regression analyses underscore the need for a multidimensional approach to conflicts on supervisory boards in education. Task conflict has a positive effect and relationship conflict a negative effect, while process conflict seems to have no significant effect on supervisory board effectiveness. Furthermore, task conflicts have a mitigating, rather than a triggering, effect on relationship conflicts. Supervisory boards in education should therefore not avoid substantive discussions on the differences of opinion among their members to be more effective.
Boards are expected to contribute to an organization's performance. In the case of schools, this means that the board should contribute to educational quality. However, there is no scientific proof that this expectation is valid. The (growing) literature on boards suggests that the effects of school boards depend on variables, such as board behaviour and corporate governance. In this study, we present the results of a secondary analysis drawing on representative existing datasets on Dutch secondary schools. This is unique as previous research usually dealt with non-representative cases or samples. Our merged dataset includes measurements of board characteristics, board behaviour and pupils' achievements. Through Structural Equation Modelling, we show that there is ample evidence that board characteristics and board behaviour affect pupils' achievements. The only variable affecting pupil's achievements is counter vailing power perceived by the executives in the school board. The model also hints at more complex patterns of interacting variables at the board level. To get more insight into how these variables interact, a different research approach is necessary, such as case studies on board behaviour, and on the effects thereof within the school.
School boards have a central position in educational governance. They have to guarantee quality, monitor results and intervene if needed. In this article we report the results of a systematic literature review meant to identify what school boards do to contribute to educational quality. After five steps of literature selection and refinement, our initial database of 4939 was reduced to 16 empirical articles. This shows that there is actually very little empirical research on the relation between boards and educational quality. Looking more closely at the 16 remaining studies, we notice differences in the reach, quality and applied methods. Moreover, the differences between boards are considerable when looking at board composition and the scope of their autonomy. Altogether, these differences make it difficult to come up with general findings on how boards can contribute to educational quality. Nevertheless, we also found promising large-scale studies that offer a better understanding of the complex nature of the effects that boards may have on educational quality. Furthermore, in almost all of the studies, educational quality is operationalised as students’ test results, indicating a narrow perspective on educational quality.
Provides a nontechnical introduction to the partial least squares (PLS) approach. As a logical base for comparison, the PLS approach for structural path estimation is contrasted to the covariance-based approach. In so doing, a set of considerations are then provided with the goal of helping the reader understand the conditions under which it might be reasonable or even more appropriate to employ this technique. This chapter builds up from various simple 2 latent variable models to a more complex one. The formal PLS model is provided along with a discussion of the properties of its estimates. An empirical example is provided as a basis for highlighting the various analytic considerations when using PLS and the set of tests that one can employ is assessing the validity of a PLS-based model. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
We develop a conflict-oriented model of board task performance and argue that a common framework, that is, a shared understanding of its role, helps boards to perform well. Conflict is the mediating effect through which this plays out. We posit that a common framework increases board task performance because it reduces intragroup relationship conflicts, increases task conflicts within the board, and reduces conflicts in the relationship between board and CEO. We explore the model through a comparative participant observation study of 11 supervisory boards in action. The results show that while low levels of relationship conflict are typically considered a sign of a well-functioning board, the avoidance of relationship conflict negatively impacts board task performance and may lead to ‘cognitive blindness’. Boards of directors should manage—rather than avoid—relationship conflict. Based on our findings, we suggest an extended model of conflict in boards that takes into account the negative effect of conflict avoidance.
Corporate governance is an increasingly provocative topic, evident in ongoing debates between proponents of control versus collaborative approaches. We accommodate these contrasting approaches within a paradox framework, using agency and stewardship theories to elaborate the underlying tensions and to emphasize the value of monitoring, as well as empowerment. Building from these tensions, we examine reinforcing cycles that foster strategic persistence and organizational decline. We conclude by discussing means of managing control and collaboration, highlighting the implications for corporate governance.
This study examines how and when nonprofit board performance is impacted by board diversity. Specifically, we investigate board diversity policies and practices as well as board inclusion behaviors as mediating mechanisms for the influence of age, gender, and racial/ethnic diversity of the board on effective board governance practices. The empirical analysis, using a sample of 1,456 nonprofit board chief executive officers, finds that board governance practices are directly influenced by the gender and racial diversity of the board and that board inclusion behaviors together with diversity policies and practices mediate the influence of the board’s gender and racial diversity on internal and external governance practices. Additionally, we found an interaction effect that indicates when boards have greater gender diversity, the negative impact of racial diversity on governance practices is mitigated. The findings suggest that board governance can be improved with more diverse membership, but only if the board behaves inclusively and there are policies and practices in place to allow the diverse members to have an impact.
School boards are expected to monitor and enhance the educational quality of their schools. To know whether and how school boards are able to do so, we first of all need to know whether school boards are aware of the educational quality of their schools in the first place. Taking Dutch school boards in primary education as an exemplary case (N ¼ 332) we developed and tested a path model using structural equation modelling to analyse the extent to which school boards discern educational quality in their schools. The results show that, in general, school boards in primary education believe that they can contribute to enhancing the quality of school education. If the school board and school(s) management stick to their governing and management roles respectively, this positively affects the extent to which the school board is able to identify edu-cational quality in the schools it governs.
Relatively low rates of school completion among students from low socio-economic backgrounds is a key driver of intergenerational inequality. Linking data from the Programme for International Student Assessment with data from the Longitudinal Survey of Australian Youth, we use a decomposition framework to explain the gap in school completion rates by socio-economic status (SES). The two most important contributing factors are found to be lower educational aspirations of low SES students and their parents and lower numeracy and reading test scores at age 15. Differences in school characteristics by SES are estimated to be relatively unimportant.
This paper examines the influence of different social contexts of schooling on the effectiveness of schools, and is based on the premise that higher organizational levels influence all that takes place in the levels below them. This research depicts the core levels of school governance, school community, classroom culture, and their impact on student learning, and specifically studies the influence of the administrative and governance structures of public and private schools on the underlying level of the community of these schools. In turn, it is expected that the school community influences the educational culture of the primary learning process of pupils in classrooms. The results of multilevel analyses show that the differences in the maths achievement of pupils can be explained, in part, by these social contexts of learning. Furthermore, the findings show that coherence between school governors, school leaders, teachers and the school community (parents) produces a sense of community that, in turn, shapes conditions in schools that have a positive effect on pupil achievement. Differential effects of schooling in public and private education are mediated by the school governance characteristics of these schools, especially the differences in influences of the school community (parents) on the policy of the school board.
Self-reports figure prominently in organizational and management research, but there are several problems associated with their use. This article identifies six categories of self-reports and discusses such problems as common method variance, the consistency motif, and social desirability. Statistical and post hoc remedies and some procedural methods for dealing with artifactual bias are presented and evaluated. Recommendations for future research are also offered.
Social capital refers to the nature of ties within a social unit, as well as the unit's external relationships. We draw from organizational sociology and political science, and also build upon existing insights in school board research, to offer an approach that address the effects of bonding (internal ties) and bridging (external ties) by board members. We hypothesize that these two sources of social capital are positively associated with financial and academic outcomes at the district level. Results, based on data from 175 Pennsylvania districts between 2004–05 and 2006–07, support our hypotheses. Implications for research and practice are discussed.
This study aims to investigate the moderating effect of the board chair's role on the relationship between board human capital and firm performance. Board human capital has been regarded as a valuable asset that enhances firm performance. Especially, the board chair plays a crucial role in developing this high-echelon human capital. This study utilises a set of longitudinal data to examine 275 firms in Taiwan. The result indicates that board human capital is positively related to firm performance, and the individual human capital of the board chair represents a moderating effect on the relationship between board human capital and performance.
This paper investigates the relationship between nonprofit board composition and organizational efficiency. Overall, we find a significant statistical association between the presence of major donors on the board and indicators of organizational efficiency. While proof of a causal link is beyond the scope of this study, our findings are consistent with the Fama and Jensen (1983) conjecture that major donors monitor non-profit organizations at least in part through their board membership. This study also implies that, with the exception of the finance committee, it is the presence of major donors on the board and not their presence on committees that is associated with organizational efficiency measures. The multivariate analysis shows that the ratio of total expenses to program expenses is significantly and negatively associated with higher donor representation. Decomposing the total expense ratio into its two components, we find that different factors affect the administrative and fund-raising expense ratios. The percentage of major donors on the finance committee, a key committee overseeing budgets and administrative expenses, is negatively related to the organization's administrative expenses ratio. The presence of major donors on other board committees is not significantly statistically associated with nonprofit efficiency.
abstractInteractions between CEOs and their boards of directors are a prominent focus of management and strategy research. Despite the extensive literature on CEO–board relations, to date there has been limited integration of theoretical perspectives and measurement schemes. Through an extensive analysis of published studies, we hope to facilitate future research on CEO–board relations. We begin with a comparison of key theoretical approaches. Next, we conduct a content analysis of 51 empirical articles. We find that prior studies have an unbalanced focus regarding both topics and theoretical perspectives, and that there is limited consistency in the choice of measures. Based on this review, we lay out a number of promising directions for future research. We also find that, while there has been progress in international research on CEO–board relations, there are still many unanswered questions regarding the generalizability of governance theories across different geographic settings.
The objective of this paper is to provide a basic framework for researchers interested in reporting the results of their PLS
analyses. Since the dominant paradigm in reporting Structural Equation Modeling results is covariance based, this paper begins
by providing a discussion of key differences and rationale that researchers can use to support their use of PLS. This is followed
by two examples from the discipline of Information Systems. The first consists of constructs with reflective indicators (mode
A). This is followed up with a model that includes a construct with formative indicators (mode B).
In this article, we report the results of a series of interviews with corporate directors about racial, ethnic, and gender diversity on corporate boards. On the one hand, our respondents were clear and nearly uniform in their statements that board diversity was an important goal worth pursuing. Yet when asked to provide examples or anecdotes illustrating why board diversity matters, many subjects acknowledged difficulty in illustrating theory with reference to practice.
This expressed reluctance to come to specific terms with general claims about the value of director diversity inspired our title phrase: dangerous categories. That is, while "diversity" evokes universal acclaim in the abstract, our respondents’ narratives demonstrate that it is an elusive and even dangerous subject to talk about concretely. So we are left with narratives that simultaneously extol difference and express embarrassment with it.This expressed reluctance to come to specific terms with general claims about the value of director diversity inspired our title phrase: dangerous categories. That is, while "diversity" evokes universal acclaim in the abstract, our respondents’ narratives demonstrate that it is an elusive and even dangerous subject to talk about concretely. So we are left with narratives that simultaneously extol difference and express embarrassment with it.
Purpose
– This paper develops a theoretical framework to guide future inquiry into board governance of independent schools.
Design/methodology/approach
– The authors' approach is to integrate literatures related to corporate and educational boards, motivation, leadership and group processes that are appropriate for conceptualizing independent school board governance processes.
Findings
– Shows that the institutional role of an independent school board is likely to be quite different, and considerably more significant than the role of a board of a systemic school.
Originality/value
– This paper develops an original theoretical framework that will provide a sound basis for investigation of an important but neglected aspect of educational administration in Australia.
Purpose: To investigate how and in what way local governance of education is consequential to the work of changing public schools. The focus is on the board of education meeting as a ritual performance where authority is socially negotiated to manage the emotional and symbolic interactions that shape the district organization. Research Design: Data are drawn from 30 months of organizational fieldwork in New Haven Public Schools. Analysis is conducted on meeting transcripts, participant observer field notes, and stakeholder interviews. Findings: Observed as a ritual chain, four aspects of board of education meetings can be manipulated by those attempting to assert their authority within the organization. Organizational members used copresence, shared understandings of the ritual, emotions and symbols, and feelings of solidarity to set boundaries around the organization and maintain stability. Conclusions: Performances of organizational routines such as board meetings are consequential to the micro-level work of leading and changing education. School improvement and reform initiatives must account for the midlevel of school governance at the district and board level to make meaningful and sustainable change.
Principals are understood to be critical actors in improving teaching and learning conditions in schools; however, relatively little is known about the leadership strategies to which principals should dedicate their time and effort to improve outcomes. We review the empirical literature from 51 studies of principal behaviors and student, teacher, and school outcomes and conduct a meta-analysis of these relationships. Our analysis has three central findings: (1) we find direct evidence of the relationship between principal behaviors and student achievement (0.08–0.16 SD), teacher well-being (0.34–0.38 SD), teacher instructional practices (0.35 SD), and school organizational health (0.72–0.81 SD); (2) we highlight the importance of principal behaviors beyond instructional management as potential tools to improve student achievement outcomes; and (3) the preceding findings are based almost entirely on observational studies because the causal evidence base on school leadership behaviors is nonexistent. We argue our findings suggest value in investing in school leadership capacities. We conclude by discussing opportunities to improve the quality of future research examining the relationship between principal behaviors and student, teacher, and school outcomes.
Lack of unidimensionality in structural equation models most often represents misspecification. The authors review the necessary conditions for unidimensional measurement of constructs. Two methods which assist the researcher in measurement model respecification, multiple-groups analysis and similarity coefficients, are presented and an example illustrating the use of these methods is given.
This study examines the mediating role of organisational control features, namely performance‐oriented risk management (RM) culture and the use of management control systems (MCS) in the relationship between school principal leadership styles and school performance within Australia. Based on survey responses from 106 Victorian secondary school principals, the study finds that performance‐oriented RM culture and enabling use of MCS play important mediating roles in the leadership style and school performance link. The findings also indicate that private schools are more likely to adopt a performance‐oriented RM culture than public schools. Our results extend organisational management and accounting literature linking leadership style, organisational controls and organisational performance in a school context. The findings also have implications for school governance policies.
What models of governance are effective in complex education systems? In all systems an increasing number of stakeholders are involved in designing, delivering and monitoring education. Like our societies, education systems are increasingly diverse regarding students, teachers and communities, as well as the values and identities we expect education to deliver. These trends have increased the complexity of education systems, leaving decision makers on all governance levels with the question of how to successfully manoeuvre in this highly dynamic policy area.
Governing Education in a Complex World addresses key challenges involved in governing modern education systems, looking specifically at complexity, accountability, capacity building and strategic thinking. The publication brings together research from the OECD Secretariat and invited chapters from international scholars to provide a state of the art analysis and a fresh perspective on some of the most challenging issues facing educational systems today.
Creating the open, dynamic and strategic governance systems necessary for governing complex systems is not easy. This volume challenges our traditional concepts of education governance through work on complexity, collaborative networks and decision-making. In doing so it sets the agenda for thinking about the inclusive and adaptable systems necessary for governing education in today’s world. The volume will be a useful resource for those interested in education governance and complexity, particularly policy-makers, education leaders, teachers and the education research community.
Advances in causal modeling techniques have made it possible for researchers to simultaneously examine theory and measures. However, researchers must use these new techniques appropriately. In addition to dealing with the methodological concerns associated with more traditional methods of analysis, researchers using causal modeling approaches must understand their underlying assumptions and limitations.
The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the observed data as both the measurement properties and the relationship between constructs decline. Further, and contrary to common assertion, the risk of making a Type II error can be substantial even when the sample size is large. Moreover, the present testing methods are unable to assess a model's explanatory power. To overcome these problems, the authors develop and apply a testing system based on measures of shared variance within the structural model, measurement model, and overall model.
This study seeks to identify and assess factors that contribute to effective independent school governance at the board of trustees level. A review of extant literature reveals two major challenges: (1) definitions and standards of board effectiveness are inconsistent, and (2) there is very little empirical evidence to support existing definitions and notions of effective governance. Study authors have developed a “strategic effectiveness” metric to encompass factors associated with perceptions of board effectiveness and an “institutional performance” metric that includes factors that are critical to the sustainability of independent schools. Survey respondents include 807 heads of school and board chairs. School leaders at six independent schools in the Northeast, Midwest, and the South were interviewed to gather empirical data regarding strategic board governance and institutional performance. This study identifies two areas that impact school leaders' ability to think and act strategically: (1) intentional acculturation of trustees over extended periods of time (“onboarding”) and (2) strategic identification and cultivation of potential trustees. Both of these factors impact strategic effectiveness and contribute positively to institutional performance.
Purpose
– The purpose of this study is to present two heuristics for researchers to identify different types of boards in public sector organziations, and thus enable exchange of research findings and comparative research.
Design/methodology/approach
– Based on existing knowledge, two typologies are presented. The first typology discerns four archetypes of boards, and the second typology distinguishes six board roles. The use of these typologies is briefly illustrated with findings on supervisory board in Dutch ZBOs.
Findings
– Application of the two heuristics is possible and should preferably been done in combination as formal competencies and actual practices of boards do not always coincide. In the Dutch case, boards take on more than one role often exceeding their formal position. On the other hand, examples can be found where boards are overruled and stripped from their formal powers. Combining the two heuristics renders more comprehensive insight into what boards are and do.
Originality/value
– The two heuristics show that there are different types of boards. Researchers can use these to carry out comparative research. Practitioners and policy makers can use them, for example, when designing appropriate governance structures in public sector organizations or applying international guidelines to specific types of boards and organizations.
We study the optimal composition of corporate boards. Directors can be either monitoring or advisory types. Monitoring constrains the empire-building tendency of chief executive officers (CEOs). If shareholders control the board nomination process, a non-monotonic relation ensues between agency problems and board composition. To preempt CEO entrenchment, shareholders may assemble an adviser-heavy board. If a powerful CEO influences the nomination process, this may result in a more monitor-heavy board. Regulations strengthening the monitoring role of boards can be harmful in precisely those cases in which agency problems are severe or in which CEO entrenchment is a threat to corporate governance.
There is an increased awareness that the performance of boards (good governance) is not only determined by structural determinants but by behavioral determinants as well. These behavioral determinants might be particularly important for public and nonprofit governance, where the role of the board is more diffuse and heterogeneous than in corporate governance. Here we investigate how social dynamics within boards in secondary education influence their performance. We follow a concise model that includes cognitive conflict, the use of expertise, effort norms, and social cohesion as determinants of board task performance. A survey among all secondary schools in the Netherlands serves as the empirical underpinning for this process‐oriented model of good governance. We show that the behavioral determinants have different effects on the control task and advice task of boards. Also, we find that cognitive conflicts in supervisory boards do not lead to less but rather to more social cohesion within boards. Building on these findings, we suggest a revised model of the behavioral determinants of nonprofit board performance.
This study examines the degree to which senior executive members of a school’s decision-making team (senior management team and board of directors) are aligned on fundamental principles of school strategy. Our study is based on a conceptual framework of strategic leadership as it applies in an Australian independent school context. We also examine the differences between the senior management team and board of directors based on top management team (TMT) tenure heterogeneity, and how these differences account for TMT associations with school strategy. Implications for research and practice complete the study. The terms top management team, senior management team, and senior leadership team are used interchangeably in this article.
The field of corporate governance is at a crossroads. Our knowledge of what we know about the efficacy of corporate governance mechanisms is rivaled by what we do not know. This special topic forum is dedicated to continuing the rich tradition of research in this area, with the hope that the models and theories offered will propel corporate governance research to the next level, enhancing our understanding of those governance structures and mechanisms that best serve organizational functioning.
Do school boards have a role in student achievement? Recent research suggests that they do. This case study identifies 12 board of education governance practices associated with higher levels of student achievement. The relationship between these board governance practices and the role of the board in district leadership is examined in the context of Superintendent Smith’s change initiative.
In this article, we use a sample of Norwegian quoted companies in the period of 2001–2010 to explore whether the gender quota requiring 40 % female directors on corporate boards changes the likelihood of women being appointed to top leadership roles as board chairs or corporate CEOs. Our empirical results indicate that the gender quota and the resulting increased representation of female directors provide a fertile ground for women to take top leadership positions. The presence of female board chairs is positively associated with female directors’ independence status, age and qualification, whilst the presence of female CEOs is positively related to the average qualification of female directors. Firms with older and better educated female directors are more likely to appoint female board chairs. The likelihood of female CEOs’ appointment increases with the percentage of independent directors and directors’ qualifications, especially those for female directors. Furthermore, the gender gaps with respect to qualification, board interlocks and nationality between female and male board chairs vanishes after Norwegian companies’ full compliance to the quota in January 2008. However, the gender quota has no significant impact on the gender gaps between female and male directors after its full compliance. Our article thereby contributes to understanding how gender quotas, presence of female directors, percentage of female directors on boards and other board characteristics can determine the gender of top leaders of organizations.
Corporate governance is an increasingly provocative topic, evident in ongoing debates between proponents of control versus collaborative approaches. We accommodate these contrasting approaches within a paradox framework, using agency theory and stewardship theories to elaborate the underlying tensions and to emphasize the value of monitoring, as well as empowerment. Building from these tensions, we examine reinforcing cycles that foster strategic persistence and organizational decline. We conclude by discussing means of managing control and collaboration, highlighting the implications for corporate governance.
Compared to the debate on corporate governance in the private sector and to the literature on the macro level of governance in the public sector, the micro-level governance of public organisations remains a neglected area of discussion. Against this backdrop, the paper presents an overview of international literature regarding boards in the public sector organisations, in order to evidence if, and in which terms, the board of directors has been a topic of research in public governance in the recent years. In conclusion, the paper provides suggestions for future research on boards in public organisations.
Local school boards have traditionally governed public education in the United States but have seldom been the focus of empirical research. This article provides a review of literature published in the past two decades on the role and effectiveness of local school boards, specifically with respect to school boards’ influence on students’ academic achievement. First, a brief history of school boards is presented. Second, their current status is described. Next, school board and educational governance reforms are examined. Then characteristics of effective school boards that experts have identified are delineated. The final section is devoted to discussion of research limitations and future directions.
Agency theory argues that shareholder interests require protection by separation of incumbency of rôles of board chair and CEO. Stewardship theory argues shareholder interests are maximised by shared incumbency of these rôles. Results of an empirical test fail to support agency theory and provide some support for stewardship theory.
The qualitative study presented in this article explores motivations for school board membership and conceptions of power held by school board members. The findings of the study suggest a relationship exists between the way board members define power and the type of motivation board members have for service. The implications of these findings for school board-superintendent relationships are also discussed. The purpose of the article is to suggest new concepts for board training and within superintendent leadership preparation programs so that board members and superintendents can develop healthier relationships.
This report draws on the results of an extensive study to illuminate the nature of school boards and the challenges they face. Data were gathered from a survey of board members in 2,000 school districts. The response rate was 41 percent. Following are some of the more notable findings from the study. Boards in large districts (more than 25,000 students) are fundamentally different from boards in smaller districts: Briefly, large-district boards tend to be more political than small-district boards. Questions of funding and student achievement are leading topics of local concern. To address school discipline and safety, a majority of districts use locker searches and dress codes. Respondents reported spending about 25 hours per month on board business. Two-thirds of respondents reported receiving no salary for their board service. School boards are somewhat less racially diverse than the nation as a whole. Overall, 61.1 percent of board members are male. School board members have higher incomes and are better educated than the typical American. In general, board elections are relatively apolitical affairs, with few elections deemed "very competitive." The mean length of board service among respondents is 6.7 years. (Contains 46 tables.) (WFA)
While boards of directors are usually recognized as having the potential to affect strategic change in organizations, there is considerable debate as to whether such potential is typically realized. We seek to reconcile the debate on whether boards are typically passive vs. active players in the strategy realm by developing a model that specifies when boards are likely to influence organizational strategy and whether such an influence is likely to impel vs. impede change. Specifically, we develop arguments as to when certain demographic and processual features of boards imply a greater inclination for strategic change, when these features imply a greater preference for the status quo, and how differences in such inclinations will influence strategic change. We then also propose that a board's inclination for strategic change interacts with a board's power to affect change, generating a multiplicative effect on strategic change. These ideas are tested using survey and archival data from a national sample of over 3000 hospitals. The supportive findings suggest that strategic change is significantly affected by board demography and board processes, and that these governance effects manifest themselves most strongly in situations where boards are more powerful. We discuss these findings in terms of their relevance for theories of demography, agency, and power. Copyright © 2001 John Wiley & Sons, Ltd.
Advances in causal modeling techniques have made it possible for researchers to simultaneously examine theory and measures. However, researchers must use these new techniques appropriately. In addition to dealing with the methodological concerns associated with more traditional methods of analysis, researchers using causal modeling approaches must understand their underlying assumptions and limitations.Most researchers are well equipped with a basic understanding of LISREL-type models. In contrast, current familiarity with PLS in the strategic management area is low. The current paper reviews four recent studies in the strategic management area which use PLS. The review notes that the technique has been applied inconsistently, and at times inappropriately, and suggests standards for evaluating future PLS applications. Copyright © 1999 John Wiley & Sons, Ltd.
Manuscript Type: Empirical
Research Question/Issue: The increased attention to women on corporate boards presents new challenges to governance research. In this paper we go beyond demography and open the “black box” of board behavior by drawing upon theories of gender differences and group effectiveness.
Research Findings/Insights: A unique survey of 201 Norwegian firms is used. The findings suggest that the ratio of women directors is positively associated with board strategic control. In addition, we find that the positive effects of women directors on board effectiveness are mediated through increased board development activities and through decreased level of conflict. However, our results show no evidence for a positive association between women directors and open debate. Nonetheless, open debate enhances board's strategic and operational control.
Theoretical/Academic Implications: Recognizing the limitations of traditional governance theories to explain the role and contributions of women on corporate boards, this paper draws upon group effectiveness and gender differences theories to shed some light on whether and how women make a difference to board effectiveness in strategic and operational control.
Practitioner/Policy Implications: Women's ability to make a contribution to the board may be attributable to their different leadership styles. The presence of women on corporate boards seems to increase board effectiveness through reducing the level of conflict and ensuring high quality of board development activities.
This paper examines board effectiveness through an examination of the work and relationships of non-executive directors. It is based on 40 in-depth interviews with company directors, commissioned for the Higgs Review. The paper observes that research on corporate governance lacks understanding of the behavioural processes and effects of boards of directors. Whilst board structure, composition and independence condition board effectiveness it is the actual conduct of the non-executive vis-a-vis the executive that determines board effectiveness. Data about behaviour and relationships on boards suggest that traditional theoretical divisions between agency and stewardship theory, and control versus collaboration models of the board do not adequately reflect the lived experience of non-executive directors and other directors on the board. Developing accountability as a central concept in the explanation of how boards operate effectively enables the paper to both challenge the dominant grip of agency theory on governance research and support the search for theoretical pluralism and greater understanding of board processes and dynamics. Practically, the work suggests that corporate governance reform will be undermined by prescription that supports distant perceptions of board effectiveness but not the actual effectiveness of boards.
Utilizing Rest's moral development and Victor and Cullen's ethical climate surveys, we examine differences in moral reasoning and ethical climate between board members in the for-profit and not-for-profit sectors. Six for-profit corporations and seven not-for-profit corporations, all with base operations in a major midwestern state, participated in the study. We find that profit and not-for-profit boards may not differ in moral reasoning, but do exhibit different types of ethical climates. We also find that for-profit board members may utilize higher stages of reasoning a greater percentage of the time than not-for-profit directors. In contrast, the ethical climates of the two types of organizations are significantly different. For-profit companies had climates higher in egoism than did not-for-profit companies. In addition, not-for-profit firms reflected higher benevolence factors than for-profit firms. Not-forprofit organizations also had somewhat higher, but not significantly different, mean scores on the principle factor compared to the for-profit organizations.
A general formula (α) of which a special case is the Kuder-Richardson coefficient of equivalence is shown to be the mean of
all split-half coefficients resulting from different splittings of a test. α is therefore an estimate of the correlation between
two random samples of items from a universe of items like those in the test. α is found to be an appropriate index of equivalence
and, except for very short tests, of the first-factor concentration in the test. Tests divisible into distinct subtests should
be so divided before using the formula. The index
[`(r)]ij\bar r_{ij}
, derived from α, is shown to be an index of inter-item homogeneity. Comparison is made to the Guttman and Loevinger approaches.
Parallel split coefficients are shown to be unnecessary for tests of common types. In designing tests, maximum interpretability
of scores is obtained by increasing the first-factor concentration in any separately-scored subtest and avoiding substantial
group-factor clusters within a subtest. Scalability is not a requisite.
[About the book]: Boards play a crucial role in ensuring that public and nonprofit publicly accountable and perform well. Following various failures and scandals they face increasing scrutiny, pressure and expectations. Serious questions have been raised about the ability of boards to govern effectively. Such concerns have stimulated a renewed interest in organizational governance, and a growing literature on the subject. Much of the current literature, however, has been criticized for underestimating the constraints and conflictions demands that boards face and recommending unrealistic solutions. There have been relatively few detailed empirical studies of what boards do in practice. This book fills that gap by bringing together analyses based upon some of the best recent empirical studies of public and non-profit governance in the UK. Using a new theoretical framework that highlights the paradoxical nature of governance the book throws light on the questions at the heart of recent debates about nonprofit boards: * Are boards publicly accountable or is there a democratic deficit? * Are boards able to exercise real power, or does management run the show? * What do boards do? Are they effective stewards of an organization's resources? Can they play a meaningful role in setting organisational strategy? * What effect are regulatory and other changes designed to improve board effectiveness having? The book will be essential reading for academics and students with an interest in the governance and management of public and nonprofit organizations. It will also be of value to policy-makers and practitioners who wish to gain a deeper understanding of how boards work and what can be done to improve their performance.
Economists have long been concerned with the incentive problems that arise when decision making in a firm is the province of managers who are not the firm's security holders. One outcome has been the development of “behavioral” and “managerial” theories of the firm which reject the classical model of an entrepreneur, or owner-manager, who single-mindedly operates the firm to maximize profits, in favor of theories that focus more on the motivations of a manager who controls but does not own and who has little resemblance to the classical “economic man.” Examples of this approach are Baumol (1959), Simon (1959), Cyert and March (1963), and Williamson (1964b). More recently the literature has moved toward theories that reject the classical model of the firm but assume classical forms of economic behavior on the part of agents within the firm. The firm is viewed as a set of contracts among factors of production, with each factor motivated by its self-interest. Because of its emphasis on the importance of rights in the organization established by contracts, this literature is characterized under the rubric “property rights.” Alchian and Demsetz (1972) and Jensen and Meckling (1976b) are the best examples. The antecedents of their work are in Coase (1937, 1960). The striking insight of Alchian and Demsetz (1972) and Jensen and Meckling (1976b) is in viewing the firm as a set of contracts among factors of production.