Crossing the Threshold from Founder Management to Professional Management: A Governance Perspective

ABSTRACT We argue that the challenges faced by threshold firms are deeply rooted in governance characteristics (i.e. the incentives, authority and legitimacy) which imbue them with characteristic capabilities, disabilities and path dependencies. Whereas Zahra and Filatotchev (2004 ) reason the principal problem facing threshold firms relates to organizational learning and knowledge management, we posit resource acquisition and utilization to be equally important. Moreover, we argue governance theory is more able than a knowledge‐based perspective to explain the root causes of the learning and resource issues faced by threshold firms as well as the complex set of processes involved in their effective management.     

Resources access needs and capabilities as mediators of the relationship between VC firm size and syndication

Drawing from the resource-based view and transaction costs economics, we develop a theoretical framework to explain why small and large firms face different levels of resource access needs and resource access capabilities, which mediate the relationship between firm size and hybrid governance. Employing a sample of 317 venture capital firms, drawn across six European countries, we empirically assess our framework in the context of venture capital syndication. We estimate a path model using structural equation modeling and find, consistent with our theoretical framework, mediating effects of different types of resource access needs and resource access capabilities between VC firm size and syndication frequency. These findings advance the small business literature by highlighting the trade-offs that size imposes on firms that seek to manage their access to external resources through hybrid governance strategies.     

Organizational capital,production factor resources,and relative firm size in strategic equity alliances

Access to complementary resources through strategic equity alliance networks is an important activity for both smaller and larger firms. In the literature, there is an intensive debate on the impact of alliance resources for smaller firms. We submit that the effect of alliance resources on the smaller firm financial performance depends on the attributes of these resources. Specifically, we argue that the attributes of partner organizational capital are negatively related and the attributes of partner production factor resources are positively related to the smaller firm financial performance. We test our theoretical framework by applying a longitudinal analysis to a dataset of 1730 firm-year observations of strategic equity alliances in the software industry in 25 countries over an 11-year period. We find support for our hypotheses, highlighting the critical importance of resource attributes for smaller firms in strategic equity alliance networks.     

On the range of options prices

In this paper we consider the valuation of an option with time to expiration and pay-off function which is a convex function (as is a European call option), and constant interest rate , in the case where the underlying model for stock prices is a purely discontinuous process (hence typically the model is incomplete). The main result is that, for “most” such models, the range of the values of the option, using all possible equivalent martingale measures for the valuation, is the interval , this interval being the biggest interval in which the values must lie, whatever model is used.     

Automation and the worldwide restructuring of the electronics industry: Strategic implications for developing countries

Governments in developing countries are placing a high priority on the development and expansion of an export-oriented electronics industry. Thus, the structural change and technological transformation currently being experienced throughout the world will have major implications for their success.Due to the oligopolistic nature of the internationalization process in this industry, the use of computerized and automation technologies in electronics manufacture is likely to penetrate into a very select group of Third World industrial growth poles in Asia, Latin America and the Middle East. The extent and location of this penetration will be largely controlled by the OECD-based multinationals. Consequently, the expected positive developmental effects may be diminished and limited to those few growth poles. These new constraints must be understood by LDC governments in order for them to implement countervailing strategies.