Prospects of governance 4.0: Moving beyond directors’ networks to the networked board

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Abstract

The problem that this paper addresses is growing evidence that conventional board models (especially the unitary board version) are approaching their use-by-date and may no longer be fit-for-purpose. This paper follows the published research by Ernst & Young (EY, 2021) with Dean Blomson as the lead researcher on board operating models of the future. One model was the ‘networked board operating model’; but its operation was not outlined in any detail. This conceptual paper examines the relevance, contribution, role and operation of a networked board. Methodologically, it draws on existing governance and networks’ literature and extrapolates that abductively to consider the applicability of a networked board/governance model. This paper outlines the design logic, construct, features and possible operation of such a model; and the key conditions for its success. The conclusion is that a networked board (governance) model for an enterprise (as opposed to multiple enterprises): 1) has interesting, relevant features worthy of consideration and adoption; 2) is not simply an abstract, theoretical construct but could be pragmatically applied and ‘operated’; and, therefore, 3) should have a place as an ‘alternative’ governance model (recognising that what is unconventional today may be mainstream tomorrow). The relevance of this paper is that it provides a foundation for further contemplation and critique of the model — as a viable alternative governance construct that is likely to be far more responsive to the vagaries of a VUCA (volatile, uncertain, complex and ambiguous) world, where ‘always on’ vigilance and heightened stakeholder engagement will be governance imperatives, for growing numbers of enterprises.

Keywords: Operating Models, Board Governance, Board Structures, Network Operating Models, Networked Board, Networked Governance

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: M10, L20, G34

Received: 24.08.2023
Accepted: 09.10.2023
Published online: 12.10.2023

How to cite this paper: Blomson, D. (2023). Prospects of governance 4.0: Moving beyond directors’ networks to the networked board. Risk Governance and Control: Financial Markets & Institutions, 13(3), 33–46. https://doi.org/10.22495/rgcv13i3p3