Determinants of board membership in Publicly-Owned Enterprises

Abstract

Board structure is considered one of the most important determinants of board effectiveness. This study examines the personal motives of individuals seeking board membership in Publicly-Owned Enterprises (POEs). Using the sequential mixed methods approach, thirteen in-depth interviews were conducted with current and former board members, and one hundred and thirty-seven (137) questionnaires were administered to key representatives and beneficiaries of POEs. The results indicate several factors that motivate board membership. We find that intrinsic motives, which we refer to as ‘personal benefits,’ and extrinsic motives, which we refer to as ‘social recognition,’ are the most important factors for joining POE board membership. The findings could be helpful in redesigning strategies and policies for appointing professional board members whose primary incentives for board membership are related to POE development rather than personal benefits and self-recognition.