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date: 17 June 2024

Corporate Governance in Entrepreneurial Firmslocked

Corporate Governance in Entrepreneurial Firmslocked

  • Julio De Castro, Julio De CastroEntrepreneurship, IE Business School
  • Jose LejarragaJose LejarragaEntrepreneurship, IE Business School
  •  and Qiong WuQiong WuEntrepreneurship, IE Business School

Summary

Corporate governance unfolds in entrepreneurial firms, giving rise to concerns about the coordination and control of resources. Understanding corporate governance in entrepreneurial firms (CGEF) is important because of the challenges of liability of newness and smallness and issues of transition. In particular, two issues affect these firms: a diluted separation between ownership and control and the role played by boards of directors. As a result, most of the literature on CGEF revolves around the interrelations between these governance mechanisms and how they affect the outcomes of entrepreneurially driven firms. This combination of factors present in entrepreneurial firms gives rise to new theoretical perspectives that enrich the corporate governance literature.

Subjects

  • Entrepreneurship
  • Human Resource Management
  • Organization Theory

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