Document Type

Article

Publication Date

5-1-2003

Abstract

There is widespread concern over the effectiveness of nonprofit boards of trustees. Scholars and practitioners have continued to address the phenomenon of board ineffectiveness by continuing to clarify roles and responsibilities for individuals rather than focusing on the impact of the cohesive ties amongst board members and the ability of the board to work as a unit with shared values and trust resulting in value creation for the institution. In this paper I seek to contribute to the body of knowledge by developing the following arguments: (1) the appropriate ties amongst board members are integral to the ability to discuss data and render decisions; (2) appropriate ties are developed within the structural dimension of social capital; and (3) social capital will lead to value creation for the institution. The data examines the quality and type of the ties of the structural dimension of social capital. This study contributes to the literature by furthering the study of the impact of the quality of those ties and social capital within a bonded group. And offers some practical suggestions for using the model of social capital and value creation (Tsai & Ghoshal, 1998 p.466) to help boards become more effective. The observed case shows the struggle of one board's ability to create value as they have identified their own ties as too strong and attempt to correct the situation.

Rights

© The Author(s). Kelvin Smith Library provides access for non-commercial, personal, or research use only. All other use, including but not limited to commercial or scholarly reproductions, redistribution, publication or transmission, whether by electronic means or otherwise, without prior written permission is strictly prohibited.

Department/Center

Design & Innovation

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