IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v14y2024i2p21582440241258007.html
   My bibliography  Save this article

Association Between Board and Organizational Performance Among Nonprofit Foundations in China

Author

Listed:
  • Zhou Yuanyuan
  • Lin Wenyi

Abstract

On the basis of agency and resource dependence theories, this paper mainly discusses the relationship between the board and financial performance of nonprofit foundations (NPFs) in China. The data used in this study were obtained from the 2017 annual work report of 203 national public and private fundraising NPFs. Conclusions of this empirical research are as follows. Board size is positively correlated with organizational performance. The size of the supervisory board is positively associated with total and donation incomes. In public NPFs, a negative relationship exists between the average age of directors and total and donation incomes. Foundations with fewer government officials among their directors have a higher total income. In public fundraising NPFs, a positive relationship exists between the proportion of paid directors and total and donation incomes, whereas no correlation is observed in private fundraising NPFs. This study has significant implications for understanding the relationship between board composition and organizational performance among NPFs in China. This study focuses on the effective features of boards in NPFs to enhance competitiveness in access to public resources after the enactment of the Charity Law.

Suggested Citation

  • Zhou Yuanyuan & Lin Wenyi, 2024. "Association Between Board and Organizational Performance Among Nonprofit Foundations in China," SAGE Open, , vol. 14(2), pages 21582440241, May.
    • Handle: RePEc:sae:sagope:v:14:y:2024:i:2:p:21582440241258007
    DOI: 10.1177/21582440241258007
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440241258007
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440241258007?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
    ---><---

    References listed on IDEAS

    as
    1. Filippo Vitolla & Nicola Raimo & Michele Rubino, 2020. "Board characteristics and integrated reporting quality: an agency theory perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 1152-1163, March.
    2. Chux Gervase Iwu & Lloyd Kapondoro & Michael Twum-Darko & Robertson Tengeh, 2015. "Determinants of Sustainability and Organisational Effectiveness in Non-Profit Organisations," Sustainability, MDPI, vol. 7(7), pages 1-14, July.
    3. Giulia Bellante & Laura Berardi & Silke Machold & Eugenia Nissi & Michele A. Rea, 2018. "Accountability, governance and performance in UK charities," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 19(1), pages 55-74.
    4. Aggarwal, Rajesh K. & Evans, Mark E. & Nanda, Dhananjay, 2012. "Nonprofit boards: Size, performance and managerial incentives," Journal of Accounting and Economics, Elsevier, vol. 53(1), pages 466-487.
    5. Yadong Luo & Ying Huang & Stephanie Lu Wang, 2012. "Guanxi and Organizational Performance: A Meta-Analysis," Management and Organization Review, The International Association for Chinese Management Research, vol. 8(1), pages 139-172, March.
    6. Anne Marie Ward & John Forker, 2017. "Financial Management Effectiveness and Board Gender Diversity in Member-Governed, Community Financial Institutions," Journal of Business Ethics, Springer, vol. 141(2), pages 351-366, March.
    7. 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.
    8. Marco Minciullo & Matteo Pedrini, 2020. "Antecedents of board involvement and its consequences on organisational effectiveness in non-profit organisations: a study on European corporate foundations," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(2), pages 531-555, June.
    9. 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.
    10. Chien Mu Yeh & Tracy Taylor & Russell Hoye, 2009. "Board roles in organisations with a dual board system: Empirical evidence from Taiwanese nonprofit sport organisations," Sport Management Review, Taylor & Francis Journals, vol. 12(2), pages 91-100, April.
    11. Luo, Yadong & Huang, Ying & Wang, Stephanie Lu, 2012. "Guanxi and Organizational Performance: A Meta-Analysis," Management and Organization Review, Cambridge University Press, vol. 8(1), pages 139-172, March.
    12. Carmen Marcuello, 1998. "Determinants of the Non-profit Sector Size: An Empirical Analysis in Spain," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 69(2), pages 175-192, June.
    Full references (including those not matched with items on IDEAS)

    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. Lee, Liane W.Y. & Tang, Yiming & Yip, Leslie S.C. & Sharma, Piyush, 2018. "Managing customer relationships in the emerging markets – guanxi as a driver of Chinese customer loyalty," Journal of Business Research, Elsevier, vol. 86(C), pages 356-365.
    2. Chu, Zhaofang & Feng, Bo & Lai, Fujun, 2018. "Logistics service innovation by third party logistics providers in China: Aligning guanxi and organizational structure," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 291-307.
    3. Yang, Jie & Ma, Jieqiong & Zhang, Yong & Hong, JungHwa, 2018. "With whom should you have dinner? A multidimensional framework for understanding political ties in China," Business Horizons, Elsevier, vol. 61(6), pages 891-898.
    4. Zhong Qin & Xin Deng, 2016. "Government and family Guanxi in Chinese private firms: perceptions and preference," Review of Managerial Science, Springer, vol. 10(1), pages 35-60, January.
    5. Lu, Tingyu & Zhuang, Mengzhou & Zhuang, Guijun, 2021. "When does guanxi hurt interfirm cooperation? The moderating effects of institutional development and IT infrastructure capability," Journal of Business Research, Elsevier, vol. 125(C), pages 177-186.
    6. Hongjuan Zhang & Liang Wang & Rong Han, 2019. "The China-West divide on social capital: A meta-analysis," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 745-772, September.
    7. Xueling Li & Jia Shen & Wenjie Ma & Weiyong Zhang, 2016. "The effect of business ties and government ties on new IT venture growth: an empirical examination in China," Information Technology and Management, Springer, vol. 17(3), pages 245-261, September.
    8. Cuervo-Cazurra, Alvaro & Rui, Huaichuan, 2017. "Barriers to absorptive capacity in emerging market firms," Journal of World Business, Elsevier, vol. 52(6), pages 727-742.
    9. Yulia Muratova & Jakob Arnoldi & Xin Chen & Joachim Scholderer, 2018. "Political rotations and cross-province firm acquisitions in China," Asian Business & Management, Palgrave Macmillan, vol. 17(1), pages 37-58, February.
    10. Dirk Holtbrügge, 2013. "Indigenous Management Research," Management International Review, Springer, vol. 53(1), pages 1-11, February.
    11. Luo, Jun & Chong, Alain Yee-Loong & Ngai, Eric W.T. & Liu, Martin J., 2014. "Green Supply Chain Collaboration implementation in China: The mediating role of guanxi," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 71(C), pages 98-110.
    12. Ameen Ali Bin Afif & Zuaini Ishak & Norfaiezah Sawandi, 2024. "The moderating role of organizational sub-sectors on the relationship between CEO duality and nonprofit performance," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 21(4), pages 943-962, December.
    13. Wenting Chen & Chunjia Han & Lei Wang & Petros Ieromonachou & Xiaochen Lu, 2021. "Recognition of entrepreneur’s social ties and firm innovation in emerging markets: explanation from the industrial institutional environment and survival pressure," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 491-518, June.
    14. Chen, Meng & Tang, Xinlin & Liu, Hefu & Gu, Jibao, 2023. "The impact of supply chain concentration on integration and business performance," International Journal of Production Economics, Elsevier, vol. 257(C).
    15. Yen, Dorothy Ai-wan & Abosag, Ibrahim, 2016. "Localization in China: How guanxi moderates Sino–US business relationships," Journal of Business Research, Elsevier, vol. 69(12), pages 5724-5734.
    16. Daniel Shapiro & Yao Tang & Miaojun Wang & Weiying Zhang, 2017. "Monetary incentives and innovation in Chinese SMEs," Asian Business & Management, Palgrave Macmillan, vol. 16(3), pages 130-157, July.
    17. Young Kyun Chang & Won-Yong Oh & Jee Hyun Park & Myoung Gyun Jang, 2017. "Exploring the Relationship Between Board Characteristics and CSR: Empirical Evidence from Korea," Journal of Business Ethics, Springer, vol. 140(2), pages 225-242, January.
    18. Huihua Chen & Cong Chen & Hujun Li & Jianshe Zhang & Zengke Yang, 2022. "A Simulation Study on the Processes of Intra-Group Informal Interaction Affecting Workers’ Safety Behaviors," IJERPH, MDPI, vol. 19(16), pages 1-17, August.
    19. Dejin Su & Qixia Du & Dongwon Sohn & Libo Xu, 2017. "Can High-Tech Ventures Benefit from Government Guanxi and Business Guanxi ? The Moderating Effects of Environmental Turbulence," Sustainability, MDPI, vol. 9(1), pages 1-17, January.
    20. Veena L. Brown & Erica E. Harris, 2023. "The Association of Female Leaders with Donations and Operating Margin in Nonprofit Organizations," Journal of Business Ethics, Springer, vol. 185(1), pages 223-243, 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:sae:sagope:v:14:y:2024:i:2:p:21582440241258007. 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: SAGE Publications (email available below). General contact details of provider: .

    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.