EFFECTIVE BOARDS OF DIRECTORS: AN EXAMINATION OF DIRECTOR BEHAVIORAL-TYPES

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Abstract

The study sought to explore the role that director behavioral-type might play in leading to board effectiveness. The study involved direct observation of twenty-one boards of directors or committee meetings, together with interviews of 194 respondents. The study suggests that board process may be an equal if not more important factor than board structure in determining board effectiveness. The study’s data suggests that board processes, in turn, may be influenced by the behavioral-types of individual board members. Based on the three dimensions of dissent/consensus; individual/collective; and persuasiveness/non-persuasiveness, five director behavioral types leading to a functional board emerged from the study including: (i) change agents; (ii) consensus-builders; (iii) counsellors; (iv) challengers; and (v) conductors. Five director behavioral types leading to a dysfunctional board also emerged including: (vi) controllers; (vii) conformists; (viii) cheerleaders; (ix) critics; and (x) caretakers. The study concludes with its limitations.

Keywords: Сorporate Governance, Boards of Directors, Effectiveness, Behavioral-types

How to cite this paper: Leblanc, R., & Schwartz, M. (2008). Effective boards of directors: an examination of director behavioral-types. Corporate Ownership & Control, 5(2-1), 154-167. https://doi.org/10.22495/cocv5i2c1p1