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The Contribution, Power and Influence of Part‐time Board Members

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  • Terry McNulty
  • Andrew Pettigrew

Abstract

The paper compares the contribution, power and influence of non‐executive directors and part‐time chairpersons within large UK PLC's, using interview data collected for a pilot study. Two questions are addressed: What contribution, if any, is made by non‐executive directors and part‐time chairmen? How, if at all, do part‐time chairpersons exercise power and influence? The paper reveals that part‐time chairmen and non‐executive directors claim to contribute to a broad range of issues, ranging from the strategy of the firm, to the appointment, selection and dismissal of board members. Contribution is made by part‐time chairmen and non‐executive directors converting power sources into influence. A variety of influence methods are used by part‐time chairmen and non‐executive directors to contribute as board members. Part‐time chairmen influence most by assertiveness, using the authority that comes with leading the board. Non‐executive directors influence most through persuasion and coalition formation. Non‐executive directors less on their positional authority to exert influence, and more on their personal knowledge, experience and expertise, as well as their ability to form relationships with individuals both inside and outside of the boardroom.

Suggested Citation

  • Terry McNulty & Andrew Pettigrew, 1996. "The Contribution, Power and Influence of Part‐time Board Members," Corporate Governance: An International Review, Wiley Blackwell, vol. 4(3), pages 160-179, July.
    • Handle: RePEc:bla:corgov:v:4:y:1996:i:3:p:160-179
    DOI: 10.1111/j.1467-8683.1996.tb00145.x
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    Cited by:

    1. Albie Brooks & Judy Oliver & Angelo Veljanovski, 2009. "The Role of the Independent Director: Evidence from a Survey of Independent Directors in Australia," Australian Accounting Review, CPA Australia, vol. 19(3), pages 161-177, September.
    2. Peter JANSEN & Gabriel Viorel RAITA, 2021. "Macro-Level Determinants of Board Effectiveness in UK and Romanian Listed Companies: A Conceptual Approach," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 2(10), pages 60-72, October.
    3. Concannon, Margaret & Nordberg, Donald, 2018. "Boards strategizing in liminal spaces: Process and practice, formal and informal," European Management Journal, Elsevier, vol. 36(1), pages 71-82.
    4. Afzalur Rashid, 2013. "CEO duality and agency cost: evidence from Bangladesh," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(4), pages 989-1008, November.
    5. Reggy Hooghiemstra & Jaap Manen, 2004. "Non-executive directors in the Netherlands: another expectations gap?," Accounting and Business Research, Taylor & Francis Journals, vol. 34(1), pages 25-41.

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