Abstract
This paper investigates if board diversity and expertise impact innovation and effectiveness of hospitality nonprofit organizations (NPOs). Both agency and resource dependency theories suggest that the presence of a diverse board increase organizational performance. This study explores the innovation and effectiveness strategies of NPOs. Sample represents some of the most popular NPOs. Results of the null hypotheses conclude that organizational innovation and effectiveness are affected by board diversity and expertise.
Highlights
This paper investigates whether board diversity and board expertise impact innovation and effectiveness of nonprofit organizations (NPOs)
Nonprofit research stresses the advantages of previous volunteer work, fundraising, and monitoring on the continuity of the nonprofit organizations [33]. These findings indicate that individuals currently or formerly serving on other nonprofit boards are capable of bringing further business information, understandings, and networking to boards of directors
A wide range of social services are delivered by the Salvation Army such as: food for the hungry, shelter to the homeless, assistance to the elderly and ill, and aid for the disabled
Summary
This paper investigates whether board diversity and board expertise impact innovation and effectiveness of nonprofit organizations (NPOs). Several studies have been conducted to evaluate the board of directors’ effectiveness, most have investigated the relationship between the board’s performance and organizational effectiveness. Few studies have explored the effect of the board of directors’ structure on organizational innovation [1]. Innovation is one of the most investigated topics. The leadership and success of nonprofit organizations rely on the board of directors and management effectiveness [2]. An NPO is a coordination of various components, such as board members, superior managers, volunteers, and clienteles [3]. Management and employees along with the board directors’ methods of operations form the crucial core for the functioning and effectiveness of such organizations
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