Hostname: page-component-8448b6f56d-xtgtn Total loading time: 0 Render date: 2024-04-24T09:26:36.843Z Has data issue: false hasContentIssue false
  • English
  • Français

Review of the corporate and healthcare governance literature

Published online by Cambridge University Press:  02 February 2015

Lynne Bennington
Lynne Bennington*
Affiliation:
Faculty of Business, Australian Catholic University, Australia
Get access Rights & Permissions [Opens in a new window]

Abstract

The governance and effectiveness of the healthcare sector is paramount due to its impact on human well-being and the size of this sector of the economy. Astute governments and healthcare boards need to know how to improve the governance of the sector. Therefore, this review draws together the theoretical and empirical literature from both the corporate and healthcare governance literature to determine the state of knowledge that can confidently guide those who either perform board roles as directors or who create governance structures. It concludes by suggesting that further theoretical work and research are necessary, and that the focus of both needs to be broader to take into account the complexity of the sector.

Keywords

corporate governancehealthcare governanceCEO dualityfirm performanceboard evaluationboard process
Type
Research Article
Information
Journal of Management & Organization , Volume 16 , Issue 2 , May 2010 , pp. 314 - 333
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alexander, JA, Lee, S-YD and Bazzoli, GJ (2003) Does governance matter? Board configuration and performance in not-for-profit hospitals, Milbank Quarterly, 84:733–758.Google Scholar
Alexander, JA, Weiner, BJ and Bogue, RJ (2001) Changes in the structure, composition, and activity of hospital governing boards, 1989-1997: Evidence from two national surveys, The Milbank Quarterly, 79(2): 253–279.Google Scholar
Alliance for Advancing Nonprofit Health Care (2007) What does it take to build a strong nonprofit health care board? Spring: 1–7.Google Scholar
Anderson, DW, Melanson, SJ and Maly, J (2007) The evolution of corporate governance: power redistribution brings boards to life, Corporate Governance, 15(5): 780–797.Google Scholar
Anderson, F (2007) Skirting the issue – the absence of women on corporate boards in Australia, Unpublished paper, Mooreslegal.Google Scholar
Anonymous (2007) Boards and Docs: A critical relationship, Trustee, 60(2): 29.Google Scholar
Auditor-General Victoria (2008) Managing patient safety in public hospitals. Government Printer, State of Victoria.Google Scholar
Barnett, P, Perkins, R and Powell, M (2001) On a hiding to nothing? Assessing the corporate governance of hospital and health services in New Zealand 1993-1998, International Journal of Health Planning and Management, 16: 139–154.Google Scholar
Bart, C (2006) An empirical examination of the content and composition of Board charters, International Journal of Business Governance and Ethics, 2(3/4): 198–216.Google Scholar
Bass, KH (2008) Should physicians service on the Board? Healthcare Executive, 23(4): 58–59.Google Scholar
Bennington, L and Hegarty, K (2009) Management educators – ‘you cannot blame us – we were not there!’ Asia Pacific Expert Seminar 2009, Asia Pacific International College, Sydney.Google Scholar
Benz, M and Frey, BS (2007) Corporate governance: What can we earn from public governance? Academy of Management Review, 32(1): 92–104.Google Scholar
Bevan, G (2010) Changing paradigms of governance and regulation of quality of healthcare in England, Health, Risk & Society, 10(1): 85–101.Google Scholar
Bjork, DA (2006) Collaborative leadership: A new model for developing truly effective relationships between CEOs and Trustees, Centre of Healthcare Governance.Google Scholar
BoardSource (2005) The source: Twelve principles of Governance that power exceptional boards, Boardsource, Washington, DC.Google Scholar
Bonn, I (2004) Board structure and firm performance: evidence from Australia, Journal of the Australian and New Zealand Academy of Management, 10(1): 14–24.Google Scholar
Boscheck, R (2006) Market-testing healthcare: managed care, market evolution and the search for regulatory principles, Intereconomics, 41(6): 328–336.Google Scholar
Brammer, S, Millington, A and Pavelin, S (2007) Gender and ethnic diversity among UK corporate boards, Corporate Governance, 15(2): 393–403.Google Scholar
Braithwaite, J and Travaglia, JF (2008) An overview of clinical governance policies, practices and initiatives, Australian Health Review, 32(1): 10–22.Google Scholar
Buchanan, D, Jordan, S, Preston, D and Smith, A (1997) Doctors in the process: The engagement of clinical directors in hospital management, Journal of Management in Medicine, 11(3) 132–156.Google Scholar
Cadbury, A (1992) Report of the Committee on the financial aspects of corporate governance, The Committee and Gee Publishing, London.Google Scholar
Callaly, T, Arya, D and Minas, H (2005) Quality, risk management and governance in mental health: an overview, Australian Psychiatry, 13(1): 16–20.Google Scholar
Carver, J (2006) Boards that make a difference: A new design for leadership in nonprofit and public organizations (3rd edn), Jossey-Bass, San Francisco.Google Scholar
Certo, ST (2003) Influencing initial public offering investors with prestige: Signaling with board structures, Academy of Management Review, 28(3): 432–446.Google Scholar
Certo, ST and Hodge, F (2007) Top management team prestige and organizational legitimacy: An examination of investor perceptions, Journal of Managerial Issues, 19(4): 461–477.Google Scholar
Certo, ST, Lester, RH, Dalton, CM and Dalton, DR (2006) Top management teams, strategy and financial performance: A meta-analytic examination, Journal of Management Studies, 43(4): 813–839.Google Scholar
Chahine, S and Tohme, NS (2009) Is CEO duality always negative? An exploration of CEO duality and ownership structure in the Arab IPO context, Corporate Governance: An International Review, 17(1): 123–141.Google Scholar
Chait, RP, Holland, TP and Taylor, BE (1996) Improving the performance of governing boards, The Oryx Press, Phoenix, AZ.Google Scholar
Chan, KC and Li, J (2008) Audit committee and firm value: Evidence on outside top executives as expert-independent directors, Corporate Governance, 16(1): 16–31.Google Scholar
Chhaochharia, V and Grinstein, Y (2007) The changing structure of US corporate boards: 1997-2003, Corporate Governance, 15(6): 1215–1223.Google Scholar
Chizema, A and Kim, J (2010) Outside directors on Korean boards: Governance and institutions, Journal of Management Studies, 47(1): 109–129.Google Scholar
Clark, J and Armit, K (2008) Attainment of competency in management and leadership, Clinical Governance: An International Journal, 13(1): 35–42.Google Scholar
Conger, JA and Lawler, EE (2003) Individual director evaluations: The next step in boardroom effectiveness, Ivey Business Journal, 09/October: 1–5.Google Scholar
Cordeiro, JJ, Veliyath, R and Neubaum, D (2005) Incentive for monitors: Director stock-based compensation and firm performance, Journal of Applied Business Research, 21(2): 81–90.Google Scholar
Cordeiro, JJ, Veliyath, R and Romal, JB (2007) Moderators of the relationship between director stock-based compensation and firm performance, Corporate Governance, 15(6): 1384–1393.Google Scholar
Cowan, J (2007) Good medical practice should improve patient safety, Clinical Governance: An International Journal, 12(2): 136–141.Google Scholar
Daily, CM and Dalton, DR (2004) Raiding the cookie jar, Journal of Business Strategy, 25(2) at www.emeraldinsight.com/Insight/viewContentItem.do?contentId=1491486&contentType=NonArticleGoogle Scholar
Daily, CM, Dalton, DR and Cannela, AA (2003) Corporate governance: Decades of dialogue and data, Academy of Management Review, 28(3): 371–381.Google Scholar
Dalton, CM and Dalton, DR (2005) Boards of directors: Utilizing empirical evidence in developing practical prescriptions, British Journal of Management, 16: S91–S97.Google Scholar
Dalton, CM and Dalton, DR (2006) Corporate governance best practices: the proof is in the process, Journal of Business Strategy, 27(4): 5–7.Google Scholar
Dalton, DR and Dalton, CM (2009) Women gain (hidden) ground in the boardroom, Harvard Business Review, 87(1): p.23.Google Scholar
Dalton, CM, Dalton, DR and Certo, ST (2004) Women as directors: The ‘inside’ story, Directors and Boards, 29(1): p.36.Google Scholar
Dalton, DR, Daily, CM, Certo, ST and Roengpitya, R (2003) Meta-analyses of financial performance and equity: fusion or confusion? Academy of Management Journal, 46(1): 13–26.Google Scholar
Dalton, DR, Daily, CM, Ellstrand, AE and Johnson, JL (1998) Meta-analytic reviews of board composition, leadership structure and financial performance, Strategic Management Journal, 1: 269–290.Google Scholar
Davidson, WN, Ning, Y, Rakowski, D and Elsiad, E (2008) The antecedents of simultaneous appointments to CEO and Chair, Journal of Management and Governance, 12: 381–401.Google Scholar
Davis, JH, Schoorman, FD and Donaldson, L (1997) Toward a stewardship theory of management, Academy of Management Review, 22: 20–47.Google Scholar
Deming, WE (1986) Out ofthe crisis, MIT- CAES, Cambridge, MA.Google Scholar
DoH (1997) The new NHS – modern and dependable, The Stationary Office, London.Google Scholar
Dulewicz, V, Gay, K and Taylor, B (2007) What makes an outstanding chairman? Findings from the UK non-executive director of the year awards, 2006, Corporate Governance, 15(6): 1056–1069.Google Scholar
Duncan-Marr, A and Duckett, SJ (2005) Board self-evaluation: the Bayside health experience, Australian Health Review, 29(3): 340–344.Google Scholar
Eeckloo, K, Delesie, L, A, and Vleugels, (2007) Where is the pilot? The changing shapes of governance in the European hospital sector, The Journal of The Royal Society for the Promotion of Health, 127(2): 78–86.Google Scholar
Eeckloo, K, van Herck, G, van Hulle, C and Vleugels, A (2004) From corporate governance to hospital governance: Authority, transparency and accountability of Belgian non-profit hospitals' board and management, Health Policy, 68: 1–15.Google Scholar
Elsayed, K. (2007) Does CEO duality really affect corporate performance? Corporate Governance, 15(6): 1203–1214.Google Scholar
Fields, D. (2007) Governance in permanent whitewater: The board's role in planning and implementing organizational change, Corporate Governance, 15(2): 334–344.Google Scholar
Finkelstein, S and Mooney, AC (2003) Not the usual suspects: How to use board process to make boards better, Academy of Management Executive, 17(2): 101–113.Google Scholar
Fishel, D (2008) The book of the board: Effective governance for non-profit organizations (2nd edn). The Federation Press, Annandale, NSW.Google Scholar
Flannigan, AC and Power, P (2008) Introduction, Australian Health Review, 32(1): 7–9.Google Scholar
Garratt, B (2003) The fish rots from the head: The crisis in our boardrooms: developing the crucial skills ofthe competent director, Profile Books, London.Google Scholar
Gunz, HP, SP Gunz, SP and Jones, RVA (2004) The role of corporate counsel in the new governance model: sound policy or another quick fix? International Journal of Business Governance and Ethics, 1(2/3): 126–136.Google Scholar
Hacket, M., Lilford, R and Jordan, J (1999) Clinical governance: culture, leadership and power – the key to changing attitudes and behaviours in trusts, International Journal of Health Care Quality Assurance, 12(3): 98–104.Google Scholar
Hall, AG (2008) Greening healthcare: 21st century and beyond, Frontiers of Health Services Management, 25(1): 37–43.Google Scholar
Hall, RF, Keane, TP, McConnell, C and Becker, S (2005) The 21st century board: Structure, responsibility, assessment, Journal of Leadership and Organizational Studies, 11(3): 62–71.Google Scholar
Hamilton, D (2008) The challenge of sustainable hospital building, Frontiers of Health Services Management, 25(1): 33–36.Google Scholar
Harrison, JR (1987) The strategic use of corporate board committees, California Management Review, 30(1): 109–125.Google Scholar
Heracleous, L (2001) What is the impact of corporate governance on organizational performance? Corporate Governance, 9(3): 165–173.Google Scholar
Herzlinger, RE (1994) Effective oversight: A guide for nonprofit directors, Harvard Business Review, 72(4): 52–60.Google Scholar
Hillman, AJ (2005) Politicians on the board of directors: Do connections affect the bottom line? Journal of Management, 31(3): p. 464.Google Scholar
Hillman, AJ, Cannella, AA and Harris, IC (2002) Women and racial minorities in the Boardroom: How do directors differ? Journal of Management, 28(6): 747–763.Google Scholar
Hillman, AJ and Dalziel, T (2003) Boards of directors and firm performance: Integrating agency and resource dependence perspectives, Academy of Management Review, 28(3): 383–396.Google Scholar
Hillman, AJ, Shropshire, C and Cannella, AA (2007) Organizational predictors of women on corporate boards, Academy of Management Journal, 50(4): 941–952.Google Scholar
Howard, C and Seth-Purdie, R (2005) Governance issues for public sector boards, Australian Journal of Public Administration, 64(3): 56–68.Google Scholar
Hudson, M (2005) Managing at the leading edge: new challenges in managing nonprofit organizations, Jossey-Bass, San Francisco.Google Scholar
Huse, M (2005) Accountability and creating accountability: a framework for exploring behavioural perspectives of corporate governance, British Journal of Management, 16: S65–S70.Google Scholar
Huse, M (2007) Boards, governance and value creation, Cambridge University Press, Cambridge.Google Scholar
Jauncey, SP and Mosely-Greatwich, DN (2007) The validity of measuring director and board performance: continuum or categorization? International Journal of Business Governance and Ethics, 3(3): 262–273.Google Scholar
Kang, H, Cheng, M and Gray, SJ (2007) Corporate governance and board composition diversity and independence of Australian boards, Corporate Governance, 15(2): 194–207.Google Scholar
Kaufman, A and Englander, E (2005) A team production model of corporate governance, Academy of Management Executive, 19(3): 9–22.Google Scholar
Kiel, G and Nicholson, G (2003) Boards that work: A new guide for directors, McGraw-Hill, Sydney.Google Scholar
Kim, Y and Cannella, AA (2008) Toward a social capital theory of director selection, Corporate Governance, 16(4): 282–293.Google Scholar
Kulmann, E, Allsop, J and Saks, M (2009) professional governance and public control, Current Sociology, 57(4): 511–528.Google Scholar
Lam, TY and Lee, SK (2008) CEO duality and firm performance: Evidence from Hong Kong, Corporate Governance, 8(3): 299–315.Google Scholar
Lapido, D (2007) Board evaluation, in Smerdon, R (Ed) A practical guide to corporate governance, 3rd Edn), pp 159–175, Sweet & Maxwell, London.Google Scholar
Leblanc, R (2007) Corporate governance and board effectiveness 2.0, International Journal of Business Governance and Ethics, 3(2): 106–112.Google Scholar
Leblanc, R and Gillies, J (2005) Inside the boardroom: How boards really work and the coming revolution in corporate governance, Wiley, Toronto.Google Scholar
Leblanc, R and Schwartz, MS (2007) The black box of board process: Gaining access to a difficult subject, Corporate Governance, 15(5): 843–851.Google Scholar
Lee, S-YD, Alexander, JA and Wang, V (2007) A taxonomy of hospital governing boards, Academy of Management Proceedings, Philadelphia, 3-8 08, pp. 1–6.Google Scholar
Leggat, SG (2008) Let's talk governance, Australian Health Review, 32(1): 4.Google Scholar
Leggat, SG, Bartram, T and Stanton, P (2005) Performance monitoring in the Victorian health care system: an exploratory study, Australian Health Review, 29(1): 17–24.Google Scholar
Letendre, L (2004) The dynamics of the boardroom, Academy of Management Executive, 18(1): 101–104.Google Scholar
Li, J and Harrison, JR (2008) Corporate governance and national culture: a multi-country study, Corporate Governance, 8(5): 607–621.Google Scholar
Lin, CY-Y, Wei, Y-C and Chen, M-H (2006) The role of the board chair in the relationship between board human capital and firm performance, International Journal of Business Governance and Ethics, 2(3/4): 329–340.Google Scholar
Lockee, C (2008) Board structures and practices, Healthcare Executive, 23(2): 62–64.Google Scholar
Lynall, MD, Golden, BR and Hillman, AJ (2003) Board composition from adolescence to maturity: A multitheoretic view, Academy of Management Review, 28(3): 416–431.Google Scholar
Masterton, RG and Teare, EL (2001) Clinical governance and infection control in the United Kingdom, Journal of Hospital Infection, 47: 25–31.Google Scholar
McDonagh, KJ, Chenoweth, J, Totten, MK and Orlikoff, JE (2008) Connecting governance culture and hospital performance Improvement, Trustee Workbook, 04: 1–4.Google Scholar
McDonald, ML, Khanna, P and Westphal, JD (2008) Getting them to think outside the circle: Corporate governance, CEOs' external advice networks, and firm performance, Academy of Management Journal, 51(3): 453–475.Google Scholar
McIntyre, ML and Murphy, SA (2007) Board of director effectiveness committees, International Journal of Business Governance and Ethics, 3(4): 461–472.Google Scholar
McIntyre, ML, Murphy, SA and Mitchell, P (2007) The top team: examining board composition and firm performance, Corporate Governance, 7(5): 547–561.Google Scholar
Mendez, CF and Garcia, RA (2007) The effects of ownership structure and board composition on the audit committee meeting frequency: Spanish evidence, Corporate Governance, 15(5): 909–922.Google Scholar
Meyer, LD, Hodgkinson, AR, Knight, R, Ho, MT, di Corpo, SK and Bhalla, S (2007) Graduate capabilities for health service managers: reconfiguring health management education @UNSW, Australian Health Review, 31(3): 379–384.Google Scholar
Miller, T and Triana, MdC (2009) Demographic diversity in the Boardroom: mediators of the board diversity–firm performance relationship, Journal of Management Studies, 46(5): 755–786.Google Scholar
Minichilli, A, Gabrielson, J and Huse, M (2007) Board evaluations: making a fit between the purpose and the system, Corporate Governance, 15(4): 609–622.Google Scholar
Mueller, J, Warrick, DD and Rennie, M (2009) Corporate boards: The new corporate leaders, Journal of Academy of Business and Economics, 9(1): 105–113.Google Scholar
Nadler, DA (2004) Building better boards, Harvard Business Review, 82(5): 102–111.Google Scholar
Nicholson, GJ and Kiel, GC (2007) Can directors impact performance? A case-based test of three theories of corporate governance, Corporate Governance, 15(4): 585–608.Google Scholar
Nielsen, S, Huse, M, Minichilli, A and Zattoni, A (2008) Board diversity and firm performance: An empirical investigation of the mediating effects of board processes and task performance, Academy of Management Proceedings, Anaheim.Google Scholar
Orlikoff, JE and Totten, MK (2006) The challenges of system governance, Trustee Workbook, 59(4): 15–19.Google Scholar
Ong, CH and Wan, D (2008) Three conceptual models of board role performance, Corporate Governance, 8(3): 317–329.Google Scholar
Parker, LD (2007) Internal governance in the nonprofit boardroom: a participant observer study, Corporate Governance, 15(5): 923–934.Google Scholar
Payne, GT, Benson, GS and Finegold, DL (2009) Corporate board attributes, team effectiveness and financial performance, Journal of Management Studies, 46(4): 704–731.Google Scholar
Petasnick, WD (2007) Hospital–physician relationships: Imperative for clinical enterprise collaboration, Frontiers of Health Services Management, 24(1): 3–10.Google Scholar
Pointer, D and Stillman, D (2004) The essentials of good governance, Modern Healthcare, 34(46): 24–25.Google Scholar
Premuroso, RF and Bhattacharya, S (2007) Is there a relationship between firm performance, corporate governance, and a firm's decision to form a technology committee? Corporate Governance, 15(6): 1260–1276.Google Scholar
Prybil, L (2008) What's your Board's culture? Trustee, 61(6): 16–24.Google Scholar
Psaros, J. (2008) WHK Horwath Corporate Governance Report, Faculty of Business and Law, University of NSW.Google Scholar
Puranam, P and Vanneste, BS (2009) Trust and governance: Untangling a tangled web, Academy of Management Review, 34 (1): 11–31.Google Scholar
Rhoades, DL, Rechner, PL and Sundaramurthy, C (2000) Board composition and financial performance: A meta-analysis of the influence of outside directors, Journal of Managerial Issues, 12(1): 76–91.Google Scholar
Roberts, J (2002) Building the complementary board, Long Range Planning, 35(5): 493–520.Google Scholar
Roberts, J, McNulty, T and Stiles, P (2005) Beyond agency conceptions of the work of the nonexecutive director: Creating accountability in the boardroom, British Journal of Management, 16: S5–S26.Google Scholar
Rose, C (2007) Does female board representation influence firm performance? The Danish evidence, Corporate Governance, 15(2): 404–413.Google Scholar
Rost, K, Inauen, E, Osterloh, M and Frey, BS (2010) The corporate governance of Benedictine abbeys: What can stock corporations learn from monasteries? Journal of Management History, 16(1): 90–115.Google Scholar
Ruigrok, W, Peck, S and Tacheva, S (2007) Nationality and gender diversity on Swiss corporate boards, Corporate Governance, 15(4): 546–557.Google Scholar
Samaratunge, R and Bennington, L (2002) New Public Management: Challenge for Sri Lanka, The Asian Journal of Public Administration, 24 (1): 87–109.Google Scholar
Scholten, GRM and van der Grinten, TED (2002) Integrating medical specialists and hospitals, Health Policy, 62: 131–139.Google Scholar
Shen, W (2005) Improve board effectiveness: the need for incentives, British Journal of Management, 16: S81–S89.Google Scholar
Som, CV (2004) Clinical governance: a fresh look at its definition, Clinical Governance: an International Journal, 9(2): 87–90.Google Scholar
Sonnenfeld, JA (2002) What makes great boards great, Harvard Business Review, 80(9): 106–111.Google Scholar
Stanton, P (2006) The role of an NHS Board in assuring the quality of clinically governed care and the duty of trust to patients, Clinical Governance: An International Journal, 11(1); 39–49.Google Scholar
Stapledon, GP and Lawrence, J (1996) Board composition, structure and independence in Australia's largest listed companies, Melbourne University Law Review, 21: 150–186.Google Scholar
Steane, PD and Christie, M (2001) Non-profit boards in Australia: a distinctive governance approach, Corporate Governance: an International Journal, 9(1): 48–58.Google Scholar
Stevenson, WB and Radin, RF (2009) Social capital and social influence on the Board of Directors, Journal of Management Studies, 46(1): 16–44.Google Scholar
Sundaramurthy, C and Lewis, M (2003) Control and collaboration: Paradoxes of governance, Academy of Management Review, 28(3): 397–415.Google Scholar
Taylor, BE, Chait, RP and Holland, TP (1996) The new work of the nonprofit board, Harvard Business Review, 74(5): 36–46.Google Scholar
The Victorian Public Hospital Governance Reform Panel (2003) The Victorian Public Hospital Governance Reform Panel Report, Victorian Government Department of Human Services, Melbourne.Google Scholar
Townend, B and Vallini, G (2008) Healthcare waste management – the global paradox, Waste Management & Research, 26: 215–216.Google Scholar
Wall, D, Gerada, C, Conlon, M, Ombler-Spain, S and Warner, L (2006) Supporting clinical governance in primary care, Clinical Governance: an International Journal, 11(1): 30–38.Google Scholar
Zona, F and Zattoni, A (2007) Beyond the black box of demography: board processes and task effectiveness within Italian firms, Corporate Governance, 15(5): 852–864.Google Scholar