Exploring Board Interlocking Behaviour Between Nonprofit Organizations

Abstract

Directors on boards of nonprofit organizations can have additionaldirector positions in other nonprofit organizations. When several of these interlocking directors exist for a group of nonprofit organizations, a board network is formed. We investigate to what extent similarity between organizations in terms of size, funding structure and operational activities relates to the presence of shared board members between organizations. For a network of 610 organizations we test and confirm that board networks are not formed at random, but that similarity of organizational characteristics explains interlocking behaviour, and that clusters of similar organizations exist within the overall nonprofit sector. Given this observation we propose three areas for further research. In particular we discuss opportunities regarding potential effects of network clustering, the causal direction of the relationship found, and the complementarity of the board network to other social networks in the nonprofit sector. Une enquête sur les membres communs des conseils d'administration d'organisations sans but lucratifLes membres de conseils d'administration d'organisations sans but lucratif peuvent siéger dans plusieurs conseils. Cela donne naissanceà des réseaux de conseils. Les auteurs examinent ces réseaux en termes de dimension, ressources financières et activités opérationnelles sur uń echantillon de 610 organisations belges. La formation des réseaux s'avère non aléatoire; les organisations dans un réseau se ressemblent, et plusieurs réseaux sont en place. Sur base de ces observations, les auteurs proposent trois pistes de recherches possibles: analyser les effets de l'existence des réseaux, la direction de causalité de ces effets, et la complémentarité de ces réseaux avec d'autres réseaux sociaux dans le secteur sans but lucratif.

Examining the Mediating Influence of Interlocking Board Networks on Grant Making in Public Foundations

“…Examining networks of interlocking board members is a common way to study socially embedded relationships in commercial and nonprofit organizations (Chandler et al, 2013), and their importance is supported by diverse theoretical perspectives including resource dependence theory (Miller-Millesen, 2003; Mizruchi, 1996; Provan et al, 1980), network theory and social capital (Davis, 1991; Lester & Cannella, 2006), institutional theory (Galaskiewicz, 1997; Galaskiewicz & Wasserman, 1989), and elite theory (Useem, 1979). Research specifically focusing on nonprofit board interlocks suggest that board interlocks occur between nonprofit, commercial, and government organizations (Vidovich & Currie, 2012; Willems et al, 2015). However, while not all ties project high status, connections between board members are often connections between elites (Useem, 1979).…”

Responding to COVID‐19: International nonprofits' stakeholder channels, resource pressures and governance responses

“…As such, boards establish connections with external powers (Cornforth, 2003;Miller-Millesen, 2003;Pfeffer & Salancik, 1978). A well-known practice is board interlocking with stakeholder groups to facilitate access to information and resources (Pfeffer & Salancik, 1978;Willems et al, 2015).…”

“…As such, boards establish connections with external powers (Cornforth, 2003 ; Miller‐Millesen, 2003 ; Pfeffer & Salancik, 1978 ). A well‐known practice is board interlocking with stakeholder groups to facilitate access to information and resources (Pfeffer & Salancik, 1978 ; Willems et al, 2015 ). Managers similarly play a key role in handling contextual dependencies (Herman & Heimovics, 1990 ; Malatesta & Smith, 2014 ; Pfeffer & Salancik, 1978 ).…”

Nonprofit Board Governance Policy Adoption: Toward an Integrated Board Interlock Network and Institutional Perspectives

“…Board interlock study is a natural extension of board governance research given its theoretical reliance on the role of boards of directors (for synthesis of antecedents and consequences of nonprofit board interlock, see Yoon, 2021). Although scholars are increasingly paying more attention to investigating board interlock in recent nonprofit literature (Esparza & Jeon, 2013;Faulk et al, 2016Faulk et al, , 2017Moore et al, 2002;Paarlberg et al, 2020;Vidovich & Currie, 2012;Willems et al, 2015;Yoon, 2021), they do not explore the question regarding how board linkages such as interlocks shape governance decision-making on board practices (except for Bloch et al, 2020).…”