Water under the bridge? The role of functional background and decision-making style in the board monitoring role

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A few previous studies investigated the role of the individual in decision-making processes. However, the results are insufficient and imprecise. Relying on Upper Echelon Theory, this study dived deeper into the role of the individual in decision-making processes. Boards of directors, in the context of the Dutch water authorities, engage in many decision-making processes while executing their board tasks. Their monitoring role is the focal board role in this study. I developed a novel method to measure a board member’s monitoring success on the utterance-level, making it possible to analyze the data on a deep level. By examining board member monitoring success innovatively, I found that a procedural rational decision-making style relates with high board member monitoring success. The findings also suggest that a board member’s functional background does not affect the board member monitoring success or the decision-making style of a statement. I have not provided evidence for the mediation effect of decision-making style on the relationship between a board members functional background and board member monitoring success. In future research, scholars should further investigate and refine the role of the individual in decision-making processes.
Faculteit der Managementwetenschappen