New Study Reveals the Power of Respectful Leadership in Corporate Boardrooms

A recently published study by Nurit Nahum (MMTC affiliated researcher), Abraham Carmeli, and Timur Uman (MMTC member) sheds light on the significant role of professional and relational respect in boardroom leadership. The research, published in Psychology of Leaders and Leadership External link, opens in new window., reveals that when chairpersons are respected both professionally and personally by their board members, it leads to better strategic decision-making and improved firm performance.

The study, conducted with data from 200 publicly traded firms across two countries, demonstrates that respectful leadership fosters trust within the board of directors, especially in environments with high levels of uncertainty. This trust, in turn, contributes to higher-quality decisions and enhances long-term firm success.

By exploring the dual importance of professional and relational respect, the researchers provide valuable insights into corporate governance and offer strategies for leaders to improve their organization's performance.