Venture Boards: Distinctive Monitoring and Implications for Firm Performance

Garg, Shubham

doi:10.5465/amr.2010.0193

Cited by 123 publications

(155 citation statements)

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“…Because of their ownership proximity, shareholders may be informed directly by the managers and are often sufficiently knowledgeable about the firm's business. In family firms (Corbetta and Salvato, 2004;Ward, 2001), as well as entrepreneurial and venture-backed businesses (Garg, 2013;Rosenstein, 1988;Sapienza et al, 1996), strong personal relationships are shown to increase the flow of information, reduce information asymmetry, and enable greater control by shareholders over strategic decisions. …”

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confidence: 99%

“…This may involve the appointment of outside directors to the board. A major board focus will be on assisting with addressing strategic and financial issues (Sapienza et al, 1996) and overseeing strategic decision-making (Garg, 2013;Rosenstein, 1988;Sapienza et al, 1996).Boards involved in transitioning from a new venture to high growth will play a key part in determining the firm's response to greater external complexity. The board's strategy role will be emphasised in this transition where directors can contribute to decisionmaking and provide key expertise to complement management skills (Daily and Dalton, 1993;Garg and Eisenhardt, 2013;Sapienza et al, 1996).…”

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SME growth trajectories, transitions and board role portfolios: A critical review and integrative model

Ingley

Khlif²,

Karoui³

2016

International Small Business Journal

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This article presents a novel framework integrating a dynamic states approach to firm growth and a portfolio perspective of board roles. In our framework we highlight four typical firm growth states aligned with primary board roles to guide firms effectively through the transitions associated with each state to reach a new equilibrium. The particular contribution of our framework is that it takes SME heterogeneity into account, while capturing the dynamic nature of these states which are reached along non-linear, non-sequential and non-deterministic transitional pathways, as well as incorporating reverse and counterintuitive trajectories between states. KeywordsTransitions, SMEs, board role portfolio, dynamic states 2 IntroductionA large and growing literature relates to the governance of small and medium firms (SMEs), with extensive debate over the value and contribution of boards of directors and their roles in this context (Boxer et al., 2016;Gnan et al., 2015; Wilson et al., 2014). Much of this debate considers board value from a static perspective. However, the question of board value and contribution is more complex when considered in circumstances of dynamic change. Recent studies have attempted to address this question by researching board roles in conjunction with small firm growth paths and the changes experienced over the course of their existence (Bonn and Pettigrew, 2009;Filatotchev et al., 2006;Perrault and McHugh, 2015).Two key issues arise from this debate. The first issue relates to an almost exclusive use of life cycle models to match board roles with SME growth patterns (Bonn and Pettigrew, 2009;Lynall et al., 2003) and transitions accompanying growth (Filatotchev et al., 2006;Perrault and McHugh, 2015). The focus on growth and life cycles implies unidirectional, deterministic patterns of development and ignores the complex realities that most firms encounter, such as erratic growth, turnaround situations and reversals due to decline or other negative impacts (Perrault and McHugh, 2015). The second issue concerns the highly heterogeneous and dynamic nature of SMEs (Delmar et al., 2003;Empson, 2010;Phelps et al., 2007), making it difficult to encapsulate theoretically their governance needs in a comprehensive model. 3These issues indicate the need for a broader conceptualisation that reflects more adequately the complexities associated with small firm heterogeneity and dynamics, in addressing the question of how SME boards can add strategic value. The novel framework we develop in this paper provides a more complete specification of both board and firm characteristics associated with transitional dynamics through growth and transformation.While recognizing the overlap of board roles, as well as the need for boards to perform more than a single role, our model highlights the most valuable board role for each transition we depict. To ground our framework, we review and build on two streams of literature relating to board roles in smaller firms, and SME growth and development models.Nume...

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SME growth trajectories, transitions and board role portfolios: A critical review and integrative model

Ingley

Khlif²,

Karoui³

2016

International Small Business Journal

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“…For example, the sales performance, which is associated with reward for sales people refers to greater accountability in marketing management (Homburg, Artz, & Wieseke, 2012). From the point of view of business owner, the measures of firm performance is useful to monitor the significant outcomes and behaviors of managements in order to improve performance (Garg, 2013). In addition, market-based measure is also different with accounting measure.…”

Section: Competitive Advantage Theorymentioning

confidence: 99%

Transforming Entrepreneurial Resources to Competitive Advantage: The Role of Social Capital and Marketing capability

Pratono¹,

Pudjibudojo²

2016

MJSS

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“…The posible performance measures have been developed with various interest, such as sales performance that indicates reward of sales staffs as well as performance in marketing management (Homburg, Artz, and Wieseke, 2012). On the other hand, the business owners consider firm performance is essential to monitor the outcomes of their organizations in order to gain more profit (Garg, 2013).…”

Section: Social Capital and Competitive Advantagementioning

confidence: 99%

The Social Capital, Marketing Capability and Competitive Advantage: Evident from Indonesian SMEs

Pudjibudojo¹,

Saputra²,

Pratono³

2016

European Proceedings of Social &Amp; Behavioural Sciences

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This study has intention to examine the direct impact of social capital and moderating impact of marketing capability on firms' competitive advantage. This study proposes a structural equation model and tests the hypothesis through generalized structured component analysis with random survey on small medium enterprises in Indonesia. The approach allows to analysis the ellement of social capital: network, trust and cognitive as well as the ellements of marketing capability: pricing capability, product development, and marketing communication. The result indicates the effect both social capital and marketing capability provide complement to the firm performance. The result indicates that social capital is a unique resource, that enable organization to gain competitive advantage.

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Venture Boards: Distinctive Monitoring and Implications for Firm Performance

Cited by 123 publications

References 113 publications

SME growth trajectories, transitions and board role portfolios: A critical review and integrative model

SME growth trajectories, transitions and board role portfolios: A critical review and integrative model

Transforming Entrepreneurial Resources to Competitive Advantage: The Role of Social Capital and Marketing capability

The Social Capital, Marketing Capability and Competitive Advantage: Evident from Indonesian SMEs

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