Board characteristics and its performance: the effect on nonprofit organizations’ performance in Yemen

Purpose Nonprofit organizations (NPOs) encounter significant agency challenges, often intensified by contextual factors such as political instability, traditional Islamic principles and resource constraints; however, their governance dynamics in such settings remain insufficiently explored. This study examines the role of nonprofit boards as key players in governance, focusing on how board characteristics influence board performance and how board performance mediates the relationship between these characteristics and NPO performance. Design/methodology/approach Data were collected through an online survey of 322 NPOs, achieving a response rate of 67.51%. Hypotheses were tested using regression analysis in SPSS. Additional analyses assessed the robustness of the results. Findings The study reveals significant positive relationships between board characteristics and board performance, which strongly impact NPO performance. Mediation analysis confirms that board performance mediates the relationship between board characteristics and organizational outcomes. Larger, independent boards, frequent meetings and audit committees enhance NPO performance by improving board performance. These findings underscore the critical role of board performance in addressing governance challenges in resource-constrained, conflict-affected and culturally specific settings like Yemen. Originality/value This study is among the first efforts to examine nonprofit board governance in politically unstable Islamic environments, specifically Yemen. It also offers novel empirical evidence on the mediating role of board performance in governance and contributes to developing tailored models for NPOs in similar contexts, providing actionable insights for boards, donors and policymakers.