The Missing Link? A Meta-Analysis of Board Processes and Their Mediating Role

Abstract

Scholars and practitioners alike are interested in understanding what distinguishes well-functioning boards of directors from malfunctioning ones. One way to further this understanding is through the study of social-psychological processes inside the boardroom. These board processes are assumed to translate the influence of board characteristics into board effectiveness and may provide an often-referenced missing link to inconsistent findings of the characteristic-effectiveness relationship. Our meta-analysis of 84 board process studies is the first explicit examination of this assumption. Using one-stage meta-analytic structural equation modeling, we show that board processes are not per se the missing link that explains why characteristics impact effectiveness. Instead, on a bivariate level, most characteristics are only weakly or not at all related to board processes whereas board processes strongly relate to board effectiveness. Path model results show that board processes independently influence board effectiveness and that board processes only mediate the effect of board capital on board effectiveness.