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Founder/Chief Executive Officer Exit: A Social Capital Perspective of New Ventures

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  • Charles E. Bamford
  • Garry D. Bruton
  • Yvonne L. Hinson

Abstract

The founder/chief executive officer (CEO) exit is a significant event for all business organizations. However, a social capital perspective suggests that the exit of the founder/CEO may be more disruptive for new start‐ups due to the critical role the founder/CEO plays in the new organization and the heightened potential chance for failure of a new venture. A social capital perspective suggests that the ability of the entrepreneurial firm to perform better is affiliated with the social capital within the organization. This study supports a social capital perspective of CEO exit and social capital's impact on performance. It helps establish a foundation of study of CEO exit and new ventures from this perspective.

Suggested Citation

  • Charles E. Bamford & Garry D. Bruton & Yvonne L. Hinson, 2006. "Founder/Chief Executive Officer Exit: A Social Capital Perspective of New Ventures," Journal of Small Business Management, Taylor & Francis Journals, vol. 44(2), pages 207-220, April.
    • Handle: RePEc:taf:ujbmxx:v:44:y:2006:i:2:p:207-220
    DOI: 10.1111/j.1540-627X.2006.00164.x
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    Cited by:

    1. Orlando Llanos-Contreras & Hugo Baier-Fuentes & María Huertas González-Serrano, 2022. "Direct and indirect effects of SEWi, family human capital and social capital on organizational social capital in small family firms," International Entrepreneurship and Management Journal, Springer, vol. 18(4), pages 1403-1418, December.
    2. Luiz Antonio de Camargo Guerrazzi & Fernando Antonio Ribeiro Serra & Manuel Portugal Ferreira & Vanessa Vasconcelos Scazziota, 2022. "Using Meta-Analytic Structural Equation Modelling to Advance Entrepreneurship Research: A Study on the Liabilities of Newness and Smallness," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 31(3), pages 603-631, November.
    3. Cisneros, Luis & Deschamps, Bérangère & Chirita, Gabriel M. & Geindre, Sébastien, 2022. "Successful family firm succession: Transferring external social capital to a shared-leadership team of siblings," Journal of Family Business Strategy, Elsevier, vol. 13(3).

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