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Venture governance: CEO duality and new venture performance

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  • Gan, Dennis
  • Erikson, Truls

Abstract

The ‘one person, two jobs’ role (known as CEO duality) has been debated for decades. In this study, we address how the overall leadership structure of new firms relates to their performance. We investigate direct effects as well as conditional effects. Our main finding is that CEO duality is beneficial in the earliest growth stage and that the number of board members is important. Contextualizing the leadership structure, we find that CEO duality is beneficial with smaller boards, and vice versa with larger boards. Implications for theory and practice are discussed.

Suggested Citation

  • Gan, Dennis & Erikson, Truls, 2022. "Venture governance: CEO duality and new venture performance," Journal of Business Venturing Insights, Elsevier, vol. 17(C).
    • Handle: RePEc:eee:jobuve:v:17:y:2022:i:c:s2352673422000026
    DOI: 10.1016/j.jbvi.2022.e00304
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    References listed on IDEAS

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    1. Daily, Catherine M. & Dalton, Dan R., 1992. "The relationship between governance structure and corporate performance in entrepreneurial firms," Journal of Business Venturing, Elsevier, vol. 7(5), pages 375-386, September.
    2. Katalin Takacs Haynes & Amy Hillman, 2010. "The effect of board capital and CEO power on strategic change," Strategic Management Journal, Wiley Blackwell, vol. 31(11), pages 1145-1163, November.
    3. Catherine M. Daily & Dan R. Dalton, 1993. "Board of Directors Leadership and Structure: Control and Performance Implications," Entrepreneurship Theory and Practice, , vol. 17(3), pages 65-81, April.
    4. Hezun Li & Siri Terjesen & Timurs Umans, 2020. "Corporate governance in entrepreneurial firms: a systematic review and research agenda," Small Business Economics, Springer, vol. 54(1), pages 43-74, January.
    5. Brian K. Boyd, 1995. "CEO duality and firm performance: A contingency model," Strategic Management Journal, Wiley Blackwell, vol. 16(4), pages 301-312.
    6. Gerard George & D. Robley Wood & Raihan Khan, 2001. "Networking strategy of boards: implications for small and medium-sized enterprises," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 13(3), pages 269-285, July.
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    Cited by:

    1. Ploypailin Kijkasiwat & Anwar Hussain & Amna Mumtaz, 2022. "Corporate Governance, Firm Performance and Financial Leverage across Developed and Emerging Economies," Risks, MDPI, vol. 10(10), pages 1-20, September.
    2. Nguyen, Linh Thi My & Nguyen, Phong Thanh, 2023. "The board profiles that promote environmental, social, and governance disclosure–Evidence from S&P 500 firms," Finance Research Letters, Elsevier, vol. 55(PA).
    3. Quang Linh Huynh & Mohammad Enamul Hoque & Perengki Susanto & Waqas Ahmad Watto & Maryam Ashraf, 2022. "Does Financial Leverage Mediates Corporate Governance and Firm Performance?," Sustainability, MDPI, vol. 14(20), pages 1-20, October.

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