Non-executive director’s motivation to continue serving on boards: a self-determination theory perspective

Abstract

PurposeThis paper aims to identify distinct motivation profiles among non-executive directors and explores the reasons why non-executive directors continue to serve on boards of directors.Design/methodology/approachThe analysis is based on a multiple case study in the context of German supervisory boards. The authors develop their primary insights from semi-structured interviews with 53 non-executive directors.FindingsThe findings indicate that non-executive director motivation revolves around material incentives, reputation, meaningfulness, congruence with firm goals and enjoyment. Three distinct motivation profiles emerge from the analysis, with each profile exhibiting a set of unique reasons to continue serving on boards.Research limitations/implicationsFuture research needs to test for the statistical representativeness of the findings and their performance implications, preferably in a shareholder-oriented governance context.Originality/valueThe study introduces a psychological angle to the debate about non-executive director motivation. The contributions include going beyond a bi-polar distinction between intrinsic and extrinsic motivation and draw attention to how motivation profiles relate to non-executive director’s intention to continue serving on boards.