Value-creating Boards - Diversity and Evolved Processes

Rita Goyal, Nada Kakabadse, Andrew Kakabadse

Research output: Contribution to journalArticle

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Abstract

This qualitative study is based on 47 interviews with board members of UK listed companies and reveals that value-creating boards have two main characteristics: a diversity of perspective and evolved board processes. The findings of the study show that the critical attributes of boardroom diversity are members’ culture/nationality, functional background, and gender diversity. Value-creating boards also have evolved processes, such as an objective nomination process, periodic evaluations of the board and its members, and their ability to work as a team. The paper contributes to the Strategic Leadership theory, and other role-effectiveness theories. It makes a significant contribution to existing literature on board diversity and value creation by suggesting that board diversity needs a broader definition – more than mere demographic attributes of directors, and board processes, – to improve boards’ ability to create value for organizations. The paper also contributes to praxis by presenting evidence of the impact of board diversity on value creations and suggesting the most critical aspects of value-creating boards. The findings may also guide the formulation of legislation for improving corporate governance by defining diversity more broadly.
Original languageEnglish
Pages (from-to)22-41
Number of pages20
JournalJournal of Creating Value
Volume4
Issue number1
Early online date17 Apr 2018
DOIs
Publication statusPublished - 1 May 2018

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Board processes
Value creation
Demographics
Evaluation
Strategic leadership
Praxis
Gender diversity
Leadership theory
Nationality
Legislation
Corporate governance
Listed companies
Qualitative study

Bibliographical note

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

Keywords

  • Value-creating Boards
  • Diversity of Perspective
  • Board processes
  • Board effectiveness
  • Board Diversity

Cite this

Value-creating Boards - Diversity and Evolved Processes. / Goyal, Rita ; Kakabadse, Nada; Kakabadse, Andrew.

In: Journal of Creating Value , Vol. 4, No. 1, 01.05.2018, p. 22-41.

Research output: Contribution to journalArticle

Goyal, Rita ; Kakabadse, Nada ; Kakabadse, Andrew. / Value-creating Boards - Diversity and Evolved Processes. In: Journal of Creating Value . 2018 ; Vol. 4, No. 1. pp. 22-41.
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