Barnsley director Don Rowing says the need for "continuity" was key to the decision to give David Flitcroft the manager's job at Oakwell.
The 39-year-old was appointed on Sunday after two wins from three games as caretaker boss.
"We thought that continuity and stability was the key for the players.
"With just 19 games to go, we thought it would probably be counter-productive to bring someone else in," Rowing told BBC Radio Sheffield.
"The performance of the team and the passion shown by David over the last two weeks made us think he had done enough.
"We know what kind of football the fans like to see here and that is what they got (in the win over Leeds) on Saturday."
The Championship strugglers had previously approached Sean O'Driscoll, who was appointed manager at Bristol City on Monday, and Inverness boss Terry Butcher about the vacancy but were turned down by both.
Rowing confirmed that Flitcroft, previously number two to Keith Hill, had now been given a contract until the end of the season and would continue to be aided by former Fleetwood boss Micky Mellon and ex-Hartlepool manager Martin Scott.
Despite beating Leeds 2-0, the club are second bottom of the Championship and with less than three weeks to go until the transfer window closes again, Rowing said the board would back the new manager in a search for new players.
"Money will be made available to him, certainly for loan transfers," he continued.
"We wanted to know what the managerial situation was going to be before we did anything and now we do, David will be working on things from Monday."