Abstract
While directors’ task boundaries are usually ambiguous, some of their activities or behaviors clearly constitute their formal duties, whereas others are usually perceived as organizational citizenship behavior (OCB). Applying identity theory, we present a theoretical model that demonstrates one of the key drivers for directors to engage in OCB with a focus on their role identity. We argue that an individual director’s role identity is one of the key factors that motivate directors to engage in OCB. Furthermore, we propose that two board-level contingencies, board capital, and informal board hierarchy order, can moderate the effect of directors’ role-identity salience on their OCB. That is, low levels of board capital and directors’ higher positions in a board’s informal hierarchy enhance directors’ motivation to engage in OCB.
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Notes
See recent job descriptions for non-executive directors advertised on Financial Times and Indeed for companies such as InCommunities and the International Women’s Development Agency (IWDA) (accessed on 5 June 2015).
While the board literature (e.g., Yoshikawa et al., 2014; Zajac and Westphal, 1996) commonly uses the term ‘outside directors’, Higgs Review (2003, p. 6.19) notes that “‘Outside director’ is a term used in the US and elsewhere but it is not widely recognized in the UK”. For the sake of convenience, this study considers outside directors to be both non-executive directors and independent non-executive directors because they are appointed to perform the same director duties.
For instance, according to the UK’s Corporate Governance Code (2014) and Companies Act (2006, Clauses 170–177), the general duties of a director include “to act within powers; to promote the success of the company; to exercise independent judgment; to exercise reasonable care, skill and diligence; to avoid conflicts of interest; not to accept benefits from third parties; and to declare interest in proposed transaction or arrangement”.
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Yoshikawa, T., Hu, H.W. Organizational Citizenship Behaviors of Directors: An Integrated Framework of Director Role-Identity and Boardroom Structure. J Bus Ethics 143, 99–109 (2017). https://doi.org/10.1007/s10551-015-2808-9
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DOI: https://doi.org/10.1007/s10551-015-2808-9