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Effective governance for start-up companies: regarding the board as a strategic resource

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  • Coral B. Ingley
  • Kevin McCaffrey

Abstract

Start-up organisations are small companies that experience a high level of growth and considerable risk to their very survival until they evolve into stable, established companies. This situation presents a particular set of challenges in terms of corporate governance, yet research on the governance of start-ups is limited. This research paper examines and comments on the governance of start-up organisations in New Zealand. The study replicates and extends previous New Zealand-based research of boards of established companies. From the data gathered from the two surveys, conclusions can be drawn as to the role and focus of boards in start-ups versus established companies. The results are consistent with a model of active ownership which identifies key differences from established companies that could improve the governance of start-ups. The results also highlight the dependence of what might constitute effective corporate governance for a start-up on the strategic context of the company and its life cycle stage.

Suggested Citation

  • Coral B. Ingley & Kevin McCaffrey, 2007. "Effective governance for start-up companies: regarding the board as a strategic resource," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 3(3), pages 308-329.
    • Handle: RePEc:ids:ijbget:v:3:y:2007:i:3:p:308-329
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    Cited by:

    1. Qiuwei Li & Wei Zhou & Hui Zhou & Jiaxuan Chen, 2021. "Do Board Characteristics Matter for Growth Firms? Evidence from China," JRFM, MDPI, vol. 14(8), pages 1-9, August.

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