Non-executive director's motivation to continue serving on boards: a self-determination theory perspective. Issue 1 (6th February 2017)

• Record Type: Journal Article
• Authors: Walther, Axel; Möltner, Hannah; Morner, Michèle
• Is Part Of: Corporate governance. Volume 17:Issue 1(2017)
• Page Start: 64
• Page End: 76
• Publication Date: 2017-02-06
• Subjects: Boards of directors -- Motivation (psychology) -- Non-executive directors -- Self-determination theory -- Supervisory boards; Corporate governance -- Periodicals; 658.4
• DOI: 10.1108/CG-05-2016-0120
• Languages: English
• ISSNs: 1472-0701

Abstract

Abstract : Purpose: This paper aims to identify distinct motivation profiles among non-executive directors and explores the reasons why non-executive directors continue to serve on boards of directors. Design/methodology/approach: The analysis is based on a multiple case study in the context of German supervisory boards. The authors develop their primary insights from semi-structured interviews with 53 non-executive directors. Findings: The findings indicate that non-executive director motivation revolves around material incentives, reputation, meaningfulness, congruence with firm goals and enjoyment. Three distinct motivation profiles emerge from the analysis, with each profile exhibiting a set of unique reasons to continue serving on boards. Research limitations/implications: Future research needs to test for the statistical representativeness of the findings and their performance implications, preferably in a shareholder-oriented governance context. Originality/value: The study introduces a psychological angle to the debate about non-executive director motivation. The contributions include going beyond a bi-polar distinction between intrinsic and extrinsic motivation and draw attention to how motivation profiles relate to non-executive director's intention to continue serving on boards.