Outlining the inter-relationships between board processes, task performance and board effectiveness in South Africa

Purpose Prior researchers mainly used a direct input-output approach to link board characteristics to corporate financial performance. Alternatively, a process-output approach can be used to incorporate board processes. A combination of these approaches is used in this study, namely the integrative input-process-output (I-P-O) model, to outline the inter-relationships between board processes, task performance and board effectiveness in South Africa. Design/methodology/approach A self-administered questionnaire was distributed to directors serving on the boards of South African companies. Partial least squares structural equation modelling was used to analyse the complex inter-relationships between the I-P-O variables. Findings Board processes were found to be stronger predictors of board task performance and board effectiveness than the considered board characteristics. Furthermore, significant complementary partial mediation was reported for all direct and indirect paths, except for the cohesiveness board process construct and the service task. Originality/value Despite South Africa being a corporate governance pioneer, board processes have been largely overlooked in research being conducted in this highly regulated emerging market. The I-P-O model was hence applied to shed light on the black box of the boardroom by incorporating board processes. Furthermore, multi-theoretical perspectives were adopted to analyse the complex inter-relationships between board processes, tasks and board effectiveness.