“…Interestingly, while the findings on the impact of board meeting‐frequency on MFI performance are in line with our theoretical predictions, they do not echo former empirical findings by Zhu et al (). On a Canadian sample, they find no significant performance difference between NPOs and FPOs in terms of the impact of board meeting‐frequency.…”
Good governance is crucial to achieving an organization's mission. Nevertheless, little is known about how the structure of governance is influenced by the nonprofit (NPO) or for‐profit ownership (FPO) structure of an organization, partly because they tend to be active in different sectors. In this paper we overcome this challenge by using data from a global sample of 392 microfinance institutions. The results show that the average NPO has a larger board, more female directors, and a higher number of board meetings than the average FPO. Moreover, where there are larger boards and more frequent board meetings, this has a positive effect on the financial performance of NPOs. It is thus confirmed that ownership structures influence boards’ characteristics and that some board mechanisms are more efficient in some ownership structures than in others. An effective board design should thus be based on a firm's ownership structure.
“…Interestingly, while the findings on the impact of board meeting‐frequency on MFI performance are in line with our theoretical predictions, they do not echo former empirical findings by Zhu et al (). On a Canadian sample, they find no significant performance difference between NPOs and FPOs in terms of the impact of board meeting‐frequency.…”
Good governance is crucial to achieving an organization's mission. Nevertheless, little is known about how the structure of governance is influenced by the nonprofit (NPO) or for‐profit ownership (FPO) structure of an organization, partly because they tend to be active in different sectors. In this paper we overcome this challenge by using data from a global sample of 392 microfinance institutions. The results show that the average NPO has a larger board, more female directors, and a higher number of board meetings than the average FPO. Moreover, where there are larger boards and more frequent board meetings, this has a positive effect on the financial performance of NPOs. It is thus confirmed that ownership structures influence boards’ characteristics and that some board mechanisms are more efficient in some ownership structures than in others. An effective board design should thus be based on a firm's ownership structure.
“…In the context of corporate governance, this study also supports past studies, where there is a positive influence between social networks and the active participation of the board (Harris & Helfat, 2007;Huggins, 2010). Social networks provide information gaps that allow board members to contribute to corporate strategic planning ideas (Zhu, Wang, & Bart, 2014). It turns out that social networks are important in affecting board behavior as suggested by Carpenter & Westphal (2001).…”
Objective: The purpose of this paper is to determine the relationship between social factors i.e. : Social network, social norms and trust, and its relationship with board members active participation behavior (BAPB) in cooperative governance.
Methodology: A questionnaire survey was administered to 500 board members from cooperatives throughout Peninsular Malaysia. The hypotheses path was tested by conducting coefficient regression analysis and Structural Equation Modeling (SEM)
Results:. The research found a positive correlation between social network and social norms with BAPB. However, there is no relationship between trust and BAPB.
Implications: This research presents a conceptually yet empirically supported framework to describe the role of social network, social norms and trust for an in-depth understanding on board processes. The study particularly looks into the importance of social factors and its impact towards BAPB, from the perspective of social capital development. This paper gives valuable reference to administrator of cooperative organization for a formulation of a comprehensive human capital strategic plan for cooperatives.
“…A similar thing also found by Zhu et al (2016) that the support of Boards of Director (BoD)/ Directors is significant in shaping employee performance to be better. Moreover, the involvement of the Board of Directors in determining the formation of organizational strategy will trigger innovation and employee performance.…”
Working in a religion-based institution has some unique values compared to other institutions in general. These characteristics can be a distinguishing factor that influence employee performance between the two institutions that are interesting to be examined. This research focuses on analyzing the factors that influence the employee performance of Fundraising Division of the Dompet Dhuafa Amil Zakat Institution, e.g., the ability, effort, management support, internal division support, and program division support. The purposes of this research are 1) to analyze employee performance of the fundraising division; 2) to analyze factors that influence employee performance of the fundraising division and to compare the results with other institutions; and 3) to formulate the strategy to improve employee performance of the fundraising division. The data was collected using a structural questionnaire with the employee of the fundraising division as respondents. The data collected was then analyzed using descriptive analysis and Partial Least Square. The results indicate that the employee performance of the fundraising division was rated good. The effort factor, internal division support, and program division support have a significant positive effect on employee performance in the fundraising division. Leadership training, value internalization, and performance optimization are then selected as the strategies to increase employee performance of the fundraising division.
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