An examination of the power dynamics within Barbados’ credit union sector has revealed that a lack of clarity about authority, responsibilities, and decision-making roles contributes to governance challenges within these organisations.
The study was conducted by Dr. Shantelle Armstrong, who completed her PhD in Management at the Sagicor Cave Hill School of Business and Management in 2025.
She sought to better understand how governance structures and decision-making processes affect the performance and accountability of these member-focused financial institutions. She focused on how conflict and control influence relationships between boards of directors and management teams.
Dr. Armstrong adopted a mixed-methods research approach to investigate these issues, combining survey data collected from credit union board members across Barbados with an in-depth interview conducted with a representative from the Financial Services Commission. This methodology provided insights from both organisational and regulatory perspectives, allowing for a comprehensive examination of governance practices, oversight mechanisms, accountability structures, and leadership relationships within the sector.
Effective Communication Needed
The findings show that tensions between boards and management may emerge when boundaries are not clear, or when oversight and managerial influence are not appropriately balanced.
The study also highlighted the importance of effective communication, clearly defined governance frameworks, strong board leadership, and collaborative board-management relationships in fostering accountability and minimising internal conflict.
Additionally, the study underscored the potential consequences of weak governance practices. Dr. Armstrong noted that fragile structures can undermine public confidence and place the financial interests of members at risk.
The significance of this research extends beyond individual institutions. As key players in Barbados’ cooperative and financial landscape, credit unions contribute substantially to economic inclusion and community development.
By examining governance practices within the sector, Dr. Armstrong’s work contributes to wider conversations about national trust, regulatory effectiveness, leadership accountability, and organisational sustainability in small island developing states.
