This study explores how non-executive directors are challenged by management while they seek to improve the effectiveness of supervisory boards in the Netherlands. A combination of semi-structured interviews and a questionnaire among non-executive directors indicates that supervisory board members mainly experience boardroom challenges in three core areas: the ability of non-executive directors to ask management critical questions, information asymmetries between the management and supervisory boards and the management of the relationship between individual executive and non-executive directors. The qualitative in-depth analysis reveals the complexity of the main contributing factors to problems in the boardroom as well as the range of process and social interventions non-executive directors use to address boardroom issues. The findings highlight the need to better understand boardroom processes and the need of non-executive directors to carefully manage relationships in and around the boardroom.
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Understanding the decision-making process of a boardroom is one of the most fascinating parts of organizational research. We are all interested in power games, team dynamics and how the external environment could influence the decision of directors. One of the important buzzwords of today is “good governance” and many boards face a lot of societal pressure to implement best practices of governance. It goes beyond regulatory requirements and boards need to take a different perspective on integrating governance codes and best practices in their organizations. In this study, we focused on the role of individual directors in developing organizational responses to that pressure. More specifically, we looked at how directors’ own cognitive frames of governance influence the way boards choose best practices.
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The central research question in this study is: Which meaning is given to sustainability within a Dutch housing association and does making sense of the concept of sustainability lead to sustainable strategic choices? The chosen research strategy is a longitudinal case study in the Dutch housing association Welbions. Data was collected in three periods between 2009 and 2018. Welbions associates sustainability mainly with the financial position, costs and affordability, and interprets the concept as investment measures in energy savings, reducing the usage of gas and CO2-emissions which are aimed at in covenants. From the listed factors influencing strategic decision-making, the economic, technical and personal frames appeared to be used mostly. The organizational and ethical frame were used only once, and the aesthetic frame was not used at all. Noteworthy is that ecological developments were not mentioned. Frames derived from the decision criteria showed a dominating economic frame. Making sense of sustainability does not result in sustainability-based actions, or choice. This indicates that sustainable values have not gained a position in strategic decision-making, compared to traditional values such as cost-efficiency and affordability.
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