IDEAS home Printed from https://ideas.repec.org/a/kap/jmgtgv/v21y2017i4d10.1007_s10997-016-9370-4.html
   My bibliography  Save this article

Boards, governance and value creation in grant-giving foundations

Author

Listed:
  • Alessandro Hinna

    (Università di Roma Tor Vergata)

  • Fabio Monteduro

    (Università di Roma Tor Vergata)

Abstract

The non-profit sector is a sizeable and highly dynamic component of economies and societies throughout the world. The expectations placed upon non-profit organizations raise fundamental issues such as the capacity of these organizations to deliver, their accountability to the various constituencies that they serve and their capacity to create value. The effectiveness of these organizations should not be taken for granted, and it is therefore important to understand which factors affect their ability to create value. This paper investigates the relationships between the specific knowledge and experience possessed by board members and foundations’ commitment to pursue high value-added activities, such as the improvement of the performance of grant recipients or social innovation. It uses an empirical analysis to apply statistical techniques to a sample of Italian banking foundations. Our results show that, of the various types of skills and background possessed by board members, the managerial skills of business experts are particularly relevant for value creation by grant-giving foundations. The article therefore contributes to the discussion on the relationship between board skills and organizational outcomes.

Suggested Citation

  • Alessandro Hinna & Fabio Monteduro, 2017. "Boards, governance and value creation in grant-giving foundations," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 21(4), pages 935-961, December.
    • Handle: RePEc:kap:jmgtgv:v:21:y:2017:i:4:d:10.1007_s10997-016-9370-4
    DOI: 10.1007/s10997-016-9370-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10997-016-9370-4
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10997-016-9370-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Morten Huse & Robert Hoskisson & Alessandro Zattoni & Riccardo Viganò, 2011. "New perspectives on board research: changing the research agenda," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 15(1), pages 5-28, February.
    2. Karen A. Bantel & Susan E. Jackson, 1989. "Top management and innovations in banking: Does the composition of the top team make a difference?," Strategic Management Journal, Wiley Blackwell, vol. 10(S1), pages 107-124, June.
    3. Alessandro Minichilli & Cathrine Hansen, 2007. "The board advisory tasks in small firms and the event of crises," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 11(1), pages 5-22, March.
    4. Amy J. Hillman & Albert A. Cannella & Ramona L. Paetzold, 2000. "The Resource Dependence Role of Corporate Directors: Strategic Adaptation of Board Composition in Response to Environmental Change," Journal of Management Studies, Wiley Blackwell, vol. 37(2), pages 235-256, March.
    5. Katalin Takacs Haynes & Amy Hillman, 2010. "The effect of board capital and CEO power on strategic change," Strategic Management Journal, Wiley Blackwell, vol. 31(11), pages 1145-1163, November.
    6. Chris Cornforth & Charles Edwards, 1999. "Board Roles in the Strategic Management of Non‐profit Organisations: theory and practic," Corporate Governance: An International Review, Wiley Blackwell, vol. 7(4), pages 346-362, October.
    7. Yermack, David, 1996. "Higher market valuation of companies with a small board of directors," Journal of Financial Economics, Elsevier, vol. 40(2), pages 185-211, February.
    8. Kathleen Buse & Ruth Bernstein & Diana Bilimoria, 2016. "The Influence of Board Diversity, Board Diversity Policies and Practices, and Board Inclusion Behaviors on Nonprofit Governance Practices," Journal of Business Ethics, Springer, vol. 133(1), pages 179-191, January.
    9. Pugliese, Amedeo & Minichilli, Alessandro & Zattoni, Alessandro, 2014. "Integrating agency and resource dependence theory: Firm profitability, industry regulation, and board task performance," Journal of Business Research, Elsevier, vol. 67(6), pages 1189-1200.
    10. Jane E. Dutton & Robert B. Duncan, 1987. "The creation of momentum for change through the process of strategic issue diagnosis," Strategic Management Journal, Wiley Blackwell, vol. 8(3), pages 279-295, May.
    11. Lex Donaldson & James H. Davis, 1991. "Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns," Australian Journal of Management, Australian School of Business, vol. 16(1), pages 49-64, June.
    12. Brian R. Golden & Edward J. Zajac, 2001. "When will boards influence strategy? inclination × power = strategic change," Strategic Management Journal, Wiley Blackwell, vol. 22(12), pages 1087-1111, December.
    13. Roberto Di Pietra & Christos Grambovas & Ivana Raonic & Angelo Riccaboni, 2008. "The effects of board size and ‘busy’ directors on the market value of Italian companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 12(1), pages 73-91, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Norraini Nordin & Ali Khatibi & S. M. Ferdous Azam, 2024. "Nonprofit capacity and social performance: mapping the field and future directions," Management Review Quarterly, Springer, vol. 74(1), pages 171-225, February.
    2. Ryan Federo & Angel Saz‐Carranza, 2020. "A typology of board design for highly effective monitoring in intergovernmental organizations under the United Nations system," Regulation & Governance, John Wiley & Sons, vol. 14(2), pages 344-361, April.
    3. Giacomo Boesso & Fabrizio Cerbioni & Marco Ghitti, 2022. "Strong planners versus weak planners: An analysis of nonprofit organizations," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(2 Suppl.), pages 143-166.
    4. Giacomo Boesso & Fabrizio Cerbioni & Livia Mian, 2019. "La filantropia nelle fondazioni: determinismo manageriale vs solidarismo civico," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2019(1 suppl.), pages 121-144.
    5. Lourdes Arco-Castro & Maria Victoria López-Pérez & Maria Carmen Pérez-López & Lázaro Rodríguez-Ariza, 2020. "Corporate philanthropy and employee engagement," Review of Managerial Science, Springer, vol. 14(4), pages 705-725, August.
    6. Giacomo Boesso & Fabrizio Cerbioni & Andrea Menini & Giulia Redigolo, 2023. "Beyond the money: grantors supporting their grantees," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(2), pages 479-503, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zona, Fabio, 2014. "Board leadership structure and diversity over CEO time in office: A test of the evolutionary perspective on Italian firms," European Management Journal, Elsevier, vol. 32(4), pages 672-681.
    2. Sahaym, Arvin & Cho, Sam Yul & Kim, Sang Kyun & Mousa, Fariss-Terry, 2016. "Mixed blessings: How top management team heterogeneity and governance structure influence the use of corporate venture capital by post-IPO firms," Journal of Business Research, Elsevier, vol. 69(3), pages 1208-1218.
    3. María del Carmen Triana & Toyah L. Miller & Tiffany M. Trzebiatowski, 2014. "The Double-Edged Nature of Board Gender Diversity: Diversity, Firm Performance, and the Power of Women Directors as Predictors of Strategic Change," Organization Science, INFORMS, vol. 25(2), pages 609-632, April.
    4. Alexander Libman & Tatiana G. Dolgopyatova & Andrey A. Yakovlev, 2014. "The Birth Of An Entrepreneurial Board In Emerging Markets: A Russian Case," HSE Working papers WP BRP 29/MAN/2014, National Research University Higher School of Economics.
    5. Karen Schnatterly & Felipe Calvano & John P. Berns & Chaoqun Deng, 2021. "The effects of board expertise‐risk misalignment and subsequent strategic board reconfiguration on firm performance," Strategic Management Journal, Wiley Blackwell, vol. 42(11), pages 2162-2191, November.
    6. Rimon Emile & Aiman Ragab & Sandy Kyaw, 2014. "The Effect of Corporate Governance on Firm Performance, Evidence from Egypt," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(12), pages 1865-1877, December.
    7. Sara Saggese & Fabrizia Sarto & Riccardo Viganò, 2021. "Do women directors contribute to R&D? The role of critical mass and expert power," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(2), pages 593-623, June.
    8. Carl Åberg & Mariateresa Torchia, 2020. "Do boards of directors foster strategic change? A dynamic managerial capabilities perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(3), pages 655-684, September.
    9. repec:tur:wpapnw:5 is not listed on IDEAS
    10. Franco Ernesto Rubino & Paolo Tenuta & Domenico Rocco Cambrea, 2017. "Board characteristics effects on performance in family and non-family business: a multi-theoretical approach," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 21(3), pages 623-658, September.
    11. Chen, Ming-Yuan, 2014. "Determinants of corporate board structure in Taiwan," International Review of Economics & Finance, Elsevier, vol. 32(C), pages 62-78.
    12. Rivas, Jose Luis, 2012. "Diversity & internationalization: The case of boards and TMT's," International Business Review, Elsevier, vol. 21(1), pages 1-12.
    13. Giacomo Boesso & Fabrizio Cerbioni & Andrea Menini & Antonio Parbonetti, 2012. "Foundations' Governance for Strategic Philanthropy," Working papers 005, Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    14. Amy J. Hillman & Gavin Nicholson & Christine Shropshire, 2008. "Directors' Multiple Identities, Identification, and Board Monitoring and Resource Provision," Organization Science, INFORMS, vol. 19(3), pages 441-456, June.
    15. Åberg, Carl & Bankewitz, Max & Knockaert, Mirjam, 2019. "Service tasks of board of directors: A literature review and research agenda in an era of new governance practices," European Management Journal, Elsevier, vol. 37(5), pages 648-663.
    16. Laura Padilla-Angulo, 2020. "The impact of board diversity on strategic change: a stakeholder perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(4), pages 927-952, December.
    17. Steven Boivie & Michael C. Withers & Scott D. Graffin & Kevin G. Corley, 2021. "Corporate directors' implicit theories of the roles and duties of boards," Strategic Management Journal, Wiley Blackwell, vol. 42(9), pages 1662-1695, September.
    18. Eloisa Perez-de Toledo & Maria Pilar Giraldez-Puig & Jose Manuel Hurtado-Gonzalez, 2016. "The effect of environmental jolts on board governance practices and its impact on firm value," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 13(1), pages 75-95, February.
    19. Bongjin Kim & Mark M. Suazo & John E. Prescott, 2008. "Exploring the Cognitive Nature of Boards of Directors and Its Implication for Board Effectiveness," Working Papers 0032, College of Business, University of Texas at San Antonio.
    20. Tim Heubeck & Reinhard Meckl, 2024. "Does board composition matter for innovation? A longitudinal study of the organizational slack–innovation relationship in Nasdaq-100 companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(2), pages 597-624, June.
    21. Sadi Boĝaç Kanadlı & Max Bankewitz & Pingying Zhang, 2018. "Job-related diversity: the comprehensiveness and speed of board decision-making processes—an upper echelons approach," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(2), pages 427-456, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jmgtgv:v:21:y:2017:i:4:d:10.1007_s10997-016-9370-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.