The persistence of founder influence: Management, ownership, and performance effects at initial public offering

Strategic Management Journal

Volumn 24, Issue 8, 2003, Pages 707-724

  Nelson, Teresa ^a  

^a SUFFOLK UNIVERSITY   (United States)

Author keywords

CEO; Corporate governance; Founder; Initial public offering; Top management team

Indexed keywords

INDUSTRIAL ECONOMICS; MANAGEMENT SCIENCE; MANAGERS; STRATEGIC PLANNING;

CHIEF EXECUTIVE OFFICERS; CORPORATE GOVERNANCE; INITIAL PUBLIC OFFERING; TOP MANAGEMENT TEAM;

INDUSTRIAL MANAGEMENT;

EID: 0042343634     PISSN: 01432095     EISSN: None     Source Type: Journal    
DOI: 10.1002/smj.328     Document Type: Article

References (72)

1. Alchian AA, Demsetz H. 1972.Production, information costs, and economic organizations. American Economic Review 62: 777-795.
2. Andews KR. 1987. The Concept of Corporate Strategy. Irwin: Homewood, IL.
3. Arkebauer JB. 1991. Cashing Out: The Entrepreneur's Guide to Going Public. Harper Business: New York.
4. Baron JN, Hannan MT, Burton MD. 1999. Building the iron cage: determinants of managerial intensity in the early years of organizations. American Sociological Review 64: 527-548.
5. Baron JN, Hannan MT, Burton MD. 2001. Labor pains: organizational change and employee turnover in young, high-tech firms. American Journal of Sociology 106: 960-1012.
6. Baysinger B, Hoskisson RE. 1990. The composition of boards of directors and strategic control: effects on corporate strategy. Academy of Management Review 15: 72-87.
7. Beatty RP, Zajac EJ. 1994. Managerial incentives, monitoring, and risk bearing: a study of executive compensation, ownership, and board structure in initial public offerings. Administrative Science Quarterly 39: 313-335.
8. Berger PL, Luckman T. 1966. The Social Construction of Reality. Doubleday: Garden City, NY.
9. Bhave MP. 1994. A process model of entrepreneurial venture creation. Journal of Business Venturing 9: 223-242.
10. Box TM, White MA, Barr SH. 1993. A contingency model of new manufacturing firm performance: effects of owner/founders' characteristics and practices on organizational performance. Entrepreneurship Theory and Practice 18: 31-45.
11. Business Week. 1995. IPO capatalism. 18 December: cover.
12. Carter NM, Gartner WB, Reynolds PD. 1996. Exploring start-up event sequences. Journal of Business Venturing 11: 151-166.
13. Case J. 1989. The origins of entrepreneurship. Inc. June: 54.
14. Chandler A. 1962. Strategy and Structure: Chapters in the History of the Industrial Enterprise. MIT Press: Cambridge, MA.
15. Chandler GN, Hanks SH. 1994. Founder competence, the environment, and venture performance. Entrepreneurship Theory and Practice 18: 77-89.
16. Chandler GN, Hanks SH. 1998. An examination of the substitutability of founder human capital and financial capital in emerging business ventures. Journal of Business Venturing 13: 353-369.
17. Cooper A, Dunkelberg W, Woo Cr. 1990. New Business in America. NFIB Foundation: Washington, DC.
18. Cooper AC, Gimeno-Gascon FJ, Woo CY. 1994. Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing 9: 371-395.
19. Daily CM, Dalton DR. 1992. Financial performance of founder-managed versus professionally managed small corporations. Journal of Small Business Management 2: 25-34.
20. Daily CM, Dalton DR. 1997. CEO and board chair roles held jointly or separately: much ado about nothing? Academy of Management Executive 11: 11-20.
21. Dalton DR, Daily CM, Ellstrand AE, Johnson JL. 1998. Meta-analytic reviews of board composition, leadership structure, and financial performance. Strategic Management Journal 19(3): 269-290.
22. Donaldson G. 1994. Corporate Restructuring. Harvard Business School Press: Boston, MA.
23. Dowling MJ, McGee JE. 1994. Business and technology strategies and new venture performance: a study of the telecommunications equipment industry. Management Science 40: 1663-1677.
24. Dutton JE, Dukerich JM, Harquail C. 1994. Organizational images and member identification. Administrative Science Quarterly 39: 239-260.
25. Eisenhardt KM. 1989. Making fast strategic decisions in high velocity environments. Academy of Management Journal 32: 543-576.
26. Eisenhardt KM, Bourgeois LJ III. 1988. Politics of strategic decision making: toward a mid-range theory. Academy of Management Journal 31: 737-770.
27. Eisenhardt KM, Schoonhoven CB. 1990. Organizational growth: linking founding team, strategy, environment, and growth among U.S. semiconductor ventures, 1978-1988. Administrative Science Quarterly 35: 504-529.
28. England GW. 1967. Personal value systems of American managers. Academy of Management Journal 10: 53-68.
29. England GW. 1975. The Manager and His Values. Ballinger: Cambridge, MA.
30. Fama E, Jensen M. 1983. Separation of ownership and control. Journal of Law and Economics 26: 301-326.
31. Feeser HR, Willard GE. 1990. Founding strategy and performance. Strategic Management Journal 11(1): 87-99.
32. Finkelstein S, D'Aveni RA. 1994. CEO duality as a double-edged sword: how boards of directors balance entrenchment avoidance and unity of command. Academy of Management Journal 37: 1079-1108.
33. Finkelstein S, Hambrick DC. 1996. Strategic Leadership. West Publishing: Minneapolis, MN.
34. Gartner WB. 1989. Some suggestions for research on entrepreneurship. Entrepreneurship Theory and Practice 14: 27-38.
35. Gimeno J, Folta TB, Cooper AC, Woo CY. 1997. Survival of the fittest: entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly 42: 750-783.
36. Hannan MT, Burton MD, Baron JN. 1996. Inertia and change in the early years: employment relations in young, high technology firms. Industrial and Corporate Change 5: 503-536.
37. Hannan MT, Freeman J. 1989. Organizational Ecology. Harvard University Press: Cambridge, MA.
38. Hofer CW, Charan R. 1984. The transition to professional management: mission impossible? American Journal of Small Business 1: 1-11.
39. Jensen M, Meckling W. 1976. Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics 3: 305-360.
40. Jo H, Lee J. 1996. The relationship between an entrepreneur's background and performance in a new venture. Technovation 16: 161-171.
41. Kaish S, Gilad B. 1991. Characteristics of opportunities search of entrepreneurs vs. executives: sources, interests, general alertness. Journal of Business Venturing 6: 45-61.
42. Katz R. 1982. The effects of group longevity on project communication and performance. Administrative Science Quarterly 27: 81-104.
43. Kazanjian R. 1988. Relation of dominant problems to stages of growth in technology-based new ventures. Academy of Management Journal 31: 257-279.
44. Kimberly J. 1980. Initiation, innovation, and institutionalization in the creation process. In Organizational Life Cycle, Kimberly J, Miles R (eds). Jossey-Bass: San Francisco, CA; 134-160.
45. Kunze RJ. 1990. Nothing Ventured. Harper: New York.
46. Lafuente A, Salas V. 1989. Types of entrepreneurial firms: the case of new Spanish firms. Strategic Management Journal 10(1): 17-30.
47. Low MB, Abrahamson E. 1997. Movements, band-wagons, and clones: industry evolution and the entrepreneurial process. Journal of Business Venturing 12: 435-457.
48. Lynch P. 1985. Beat the Street. Random House: New York.
49. Mace M. 1971. Directors: Myth and Reality. Division of Research, Graduate School of Business Administration, Harvard University: Boston, MA.
50. March JG, Simon HA. 1958. Organizations. Wiley: New York.
51. McGee JE, Dowling MJ, Megginson WL. 1995. Cooperative business strategy and new venture performance: the role of business strategy and management experience. Strategic Management Journal 16(7): 565-580.
52. Mintzberg H, Quinn JB. 1991. The Strategy Process. Prentice-Hall: Englewood Cliffs, NJ.
53. Mintzberg H, Waters J. 1982. Tracking strategy in an entrepreneurial firm. Academy of Management Journal 25: 465-499.
54. Monks R, Minow N. 1995. Corporate Governance. Blackwell: Cambridge, MA.
55. Morck R, Shleifer A, Vishny RW. 1988. Management ownership and market valuation: an empirical analysis. Journal of Financial Economics 32: 293-315.
56. O'Flaherty JS. 1984. Going Public: The Entrepreneur's Guide. Wiley: New York.
57. Penrose EE. 1959. The Theory of the Growth of the Firm. Oxford University Press: New York.
58. Pfeffer J, Salancik G. 1978. The External Control of Organizations. Harper & Row: New York.
59. Pound J. 1995. The promise of the governed corporation. Harvard Business Review 73(2): 89-98.
60. Prahalad CK, Bettis R. 1986. The dominant logic: a new linkage between diversity and performance. Strategic Management Journal 7(6): 485-501.
61. Rasheed AM, Datta DK, Chinta RR. 1997. Determinants of price premiums: a study of initial public offerings in the medical diagnostics and devices industry. Journal of Small Business Management 35: 11-23.
62. Rechner P, Dalton D. 1991. CEO duality and organizational performance: a longitudinal analysis. Strategic Management Journal 12(2): 55-70.
63. Reuber AR, Rischer E. 1999. Understand the consequences of founders' experience. Journal of Small Business Management 37: 30-45.
64. Robbins SP. 2000. The Essentials of Organizational Behavior. Prentice-Hall: Upper Saddle River, NJ.
65. Robinson KC. 1999. An examination of the influence of industry structure on eight alternative measures of new venture performance for high potential independent new ventures. Journal of Business Venturing 14: 165-187.
66. Roure J, Maidique MA. 1986. Linking prefunding factors and high technology venture success: an exploratory study. Journal of Business Venturing 1: 295-306.
67. Rubenson GC, Gupta AK. 1996. The initial succession: a contingency model of founder tenure. Entrepreneurship Theory and Practice 21: 21-35.
68. Smith NR, Miner JR. 1983. Type of entrepreneur, type of firm, and managerial motivation: implications for organizational life cycle theory. Strategic Management Journal 4(4): 325-340.
69. Timmons JA. 1999. New Venture Creation (5th edn). Irwin/McGraw-Hill: Burr Ridge, IL.
70. Vesper KH. 1996. New Venture Experience. Vector Books: Seattle, WA.
71. Wade J, Pollock T, Porac J. 1997. Worth, words, and the justification of executive pay. Journal of Organizational Behavior 18: 641-664.
72. Welbourne TM, Andrews AO. 1996. Predicting performance of initial public offerings: should human resource management be in the equation? Academy of Management Journal 39: 891-919.