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Keywords:

  • board;
  • innovation;
  • nonprofit

Abstract

There is a growing consensus that boards of directors “matter,” but the specific effects of board influences on organizational innovation remain unclear. Although boards of directors have been studied extensively in diverse disciplines—finance, management, sociology, nonprofit management, and economics—those studies have focused primarily on how board variables influence organizational effectiveness and performance. Missing from these studies is explanation of the relationships between the board of directors and organizational innovation (Wu, 2008a). This article links previous research and theories on governance and organizational innovation, examines how the board of directors may influence organizational innovation, and presents an integrative model that includes direct and indirect linkages between the board demographic and process variables, board effectiveness, and organizational innovation.