Emotional intelligence of directors and the effectiveness of board governance decision making behavioural processes in the Australian financial services sector
Doctorate other than PhD
Emotional intelligence of directors and the effectiveness of
|Type||Doctorate other than PhD|
|Author||Hall, Jessica Elizabeth Claire|
|Institution of Origin||University of Southern Queensland|
|Qualification Name||Doctor of Business Administation|
|Number of Pages||233|
|Digital Object Identifier (DOI)||https://doi.org/10.26192/1dkx-j290|
This research investigated the relationship between the use of emotional intelligence traits by directors in board decision making processes of large Australian financial institutions. The purpose of this research was to provide a greater understanding of the relationship between the use of emotional intelligence personality traits of directors and the effectiveness of decision making. The research shows when directors make a conscious effort to use emotional intelligence trait skills, this has a positive relationship in boardroom decision making processes and the dynamics of the collective board.
The case study was conducted using a concurrent mixed methods approach by employing quantitative modelling of survey data collected and qualitative analysis of interview discussions. The interviews were conducted with 18 directors on the boards of large Australian financial services institutions over a six month period between January 2020 and June 2020. The survey instrument was based on an emotional intelligence trait survey model combined with Australian board governance practice questions.
The following original contributions were achieved in this research:
There are three key findings from this research:
This research shows that there is a positive relationship between the directors’ emotional intelligence quotient and the effectiveness of their boards in the decision making process. The directors’ that participated in this research considered that emotional intelligence traits did have a positive impact on the quality of the decision making process of the boards of the Australian financial services entities they sit on and the outcomes reached by their boards. They also considered this enabled the currency of trust to be established within the collegiate group of directors on their boards and cultivated respectful board culture.
A longer research period and larger population of participating directors may further validate these research findings. There is also scope for future research to focus on the moderating factor and investigate the role an emotionally intelligent board chair plays in facilitating effective decision making processes and how boards are elevating the use of directors’ emotional intelligence traits in board decision making.
|Keywords||board governance, financial institutions, emotional intelligence|
|ANZSRC Field of Research 2020||350204. Financial institutions (incl. banking)|
|350717. Stakeholder engagement|
|350701. Corporate governance|
|Byline Affiliations||School of Business|
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