The Influence of Board Processes on Board Effectiveness: A Proposed Model

Abstract:

As contended by the vast scholars that conventional or rather traditional approach in assessing board effectiveness deployed direct linkage between board structure or board composition with board effectiveness. Recent literature however made several calls for the need of the evolution in gauging board effectiveness not only by observing to the structural part of the board but also on the behavioural processes of decision-making activities in the boardroom. Therefore, this paper conceptualise a model of board processes in determining board effectiveness which is predicated on the process-oriented model. Having accessed to the bulk of the previous research, we find five elements of board processes that can be related to board effectiveness i.e. task conflict, board cohesion, effort norms, the use of knowledge and skills as well as board trust. alongside, we also suggest two elements that mediate task conflict and board cohesion respectively i.e. relationship conflict and groupthink.

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