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Desired Board Capabilities For Good Governance In Non-Profit Organizations

Author

Listed:
  • Arshad ROSHAYANI

    (Universiti Teknologi MARA; Shah Alam; Malaysia)

  • Mahamud MOHD HISHAM

    (Universiti Teknologi MARA; Shah Alam; Malaysia)

  • Rahmat NUR EZAN

    (Universiti Teknologi MARA; Shah Alam; Malaysia)

  • Muda RUHAINI

    (Universiti Teknologi MARA; Shah Alam; Malaysia)

  • Nair RAMESH

    (Universiti Teknologi MARA; Shah Alam; Malaysia)

Abstract

Non-profit organizations (NPOs) significantly influence society as they support socio-economic growth. Within these organizations, NPO boards play a critical role in ensuring that they are appropriately governed. Despite considerable interest in understanding the role of NPO boards, a review of literature reveals that research has primarily focused on the role of NPO boards in for-profit organizations. This paper draws specific attention to boards in NPOs by critically reviewing literature that includes industry publications and a survey of NPO board members. The findings reveal that experience, expertise and social relations are most desired capabilities in NPO board members. These capabilities are consistent with those discussed in relation to board human capital. Having identified these desired capabilities, the listed capabilities of 358 directors from 50 selected NPOs in Malaysia were examined to determine the extent to which Malaysian NPO board members possessed the aforementioned capabilities. The results revealed that only 34% of board members possessed evidence of all three capabilities while 32% possessed two capabilities, namely experience and expertise. The findings serve to extend knowledge about the desired capabilities of NPO directors. An appreciation of these capabilities have implications for NPOs as their success is dependent on ensuring that the most qualified board members are appointed, and this in turn makes organizational synergy possible.

Suggested Citation

  • Arshad ROSHAYANI & Mahamud MOHD HISHAM & Rahmat NUR EZAN & Muda RUHAINI & Nair RAMESH, 2018. "Desired Board Capabilities For Good Governance In Non-Profit Organizations," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2018(30), pages 127-140, June.
    • Handle: RePEc:rom:rampas:v:2018:y:2018:i:30:p:127-140
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    References listed on IDEAS

    as
    1. Violina P. Rindova, 1999. "What Corporate Boards have to do with Strategy: A Cognitive Perspective," Journal of Management Studies, Wiley Blackwell, vol. 36(7), pages 953-975, December.
    2. Rajagopal, 2014. "Organizations and Innovation," Palgrave Macmillan Books, in: Architecting Enterprise, chapter 3, pages 58-86, Palgrave Macmillan.
    3. Christophe Volonté & Pascal Gantenbein, 2016. "Directors’ human capital, firm strategy, and firm performance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 20(1), pages 115-145, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Iryna TKACHUK & Olena VINNYCHUK, 2020. "Impact Of Specific Macroeconomic Indicators On The Formation Of Revenues Of Non-Governmental Organizations From Personal Contributions Of The Ukrainian Population," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2020(34), pages 64-77, June.
    2. Nagwa Babiker Abdalla YOUSIF & Katarzyna GRONDYS & Salah GAD & Walaa ELSAYED, 2020. "Knowledge Management In Non-Governmental Organizations (Ngos)," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2020(35), pages 90-108, December.

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    More about this item

    Keywords

    Boards of directors; Non-profits organization; Element of capabilities; Board human capital.;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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