The determinants of trust in the boardroom

Using a behavioural perspective, this chapter presents further knowledge on the conditions in the boardroom that facilitate or hinder the presence of trust. Building on previous studies, a model explaining the hypothesised relationships between trust and its determinants (cognitive conflict, communication efficacy, the perception of board members’ competence, affective conflict, and familiarity), with the moderating effects of board meeting frequency and board tenure, was developed. Based on a survey of UK companies, it was found that the perception of board members’ competence and familiarity are positively related to trust, whereas affective conflict is negatively related to trust. The implication of this finding for board practice is that boards of directors should engage in activities such as training and development that increase directors’ perception of each other’s competencies and why affective conflict should be managed in the boardroom.