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(De)centralized governance and the value of platform-based new ventures: The moderating role of teams and transparency

Author

Listed:
  • Pierluigi Martino

    (University of Pisa)

  • Tom Vanacker

    (Ghent University
    University of Exeter Dr, Exeter)

  • Igor Filatotchev

    (King’s College London
    Vienna University of Economics and Business)

  • Cristiano Bellavitis

    (Syracuse University)

Abstract

Drawing on institutional and demand-side perspectives, we investigate performance implications of (de)centralized governance modes in platform-based new ventures, and the conditions under which (de)centralization generates more value. Using a sample of 1,431 Initial Coin Offerings (ICOs), a new source of entrepreneurial finance, we find that centralization of decision-making is positively associated with platforms’ market value. Further, we consider how platform characteristics affect this relationship, finding that both the presence of an experienced Chief Technology Officer (CTO) and project transparency negatively moderate the positive relationship between centralization and market value. Thus, decentralized platforms need leaders with technical experience and project transparency to generate more value. Overall, this study provides a better understanding of the boundary conditions that increase the value of (de)centralized governance.

Suggested Citation

  • Pierluigi Martino & Tom Vanacker & Igor Filatotchev & Cristiano Bellavitis, 2025. "(De)centralized governance and the value of platform-based new ventures: The moderating role of teams and transparency," Small Business Economics, Springer, vol. 64(4), pages 1763-1790, April.
    • Handle: RePEc:kap:sbusec:v:64:y:2025:i:4:d:10.1007_s11187-024-00964-6
    DOI: 10.1007/s11187-024-00964-6
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    Keywords

    Entrepreneurial finance; Platform governance; Decentralization; Platform performance; Initial Coin Offerings; Demand-side theory;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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