Organizational and Environmental Determinants of Board Performance in Community-Based Human Service Nonprofit Organizations

Abstract

ABSTRACT Previous studies have examined board-level determinants of board performance but left other organizational and environmental factors underexplored. This study examines determinants of board performance through multiple theories by using a sample of community-based human service nonprofits in Taiwan. The results show that organizational characteristics, such as governance structure, organizational stability, and management professionalization, are associated with board performance. A two-tier board design and a stable organization are essential to effective board performance, while having professional chief executive officers is linked to less effective board performance. Surprisingly, the results also show that external funding sources are not associated with board performance. PRACTICE POINTS Active board engagement does not necessarily mean better board performance. A two-tier governance structure can positively influence board performance. Nonprofit organizations need board members to fulfill their roles and responsibilities, especially when nonprofit organizations are unstable and/or when chief executive officers are professional.