Aritcle Review
Citation:
Daily, C.M., McDougall, P.P., Covin, J.G., & Dalton, D. R. 2002. Governance and strategic leadership in entrepreneurial firms. Journal of Management, Vol. 28(3): pp 387-412.
Domain:
The general domain is firm performance and the specific domain is the correlation between firm performance and entrepreneurial strategic leadership.
Theoretical Framework:
The authors of this article attempted to demonstrate the dependence of firm performance in an entrepreneurial firm with respect to the strategic leadership of various positions. That is to say they looked at the CEO, top management teams, board of directors and venture capitalists to determine how they can affect a firm’s performance. They further broke these relationships down to certain aspects of each that might vary the outcome. An example would be the demographic differences of top management teams such as educational differences, tenure, and position.
The expected outcome from this study would be that the more intertwined and power that the position has, the greater the influence on a firm’s performance they would have. The argument here is that in an entrepreneurial firm, these strategic leaders are more capable of influencing performance than in larger, more mature firms. The authors attempt to determine if this argument holds true.
Major Contributions:
The attempt by the authors to determine if these varying “positions of power” have a positive or negative influence on an entrepreneurial firm’s performance is the main focus of the paper. They begin by defining an entrepreneurial firm as the creation of a new organization by an individual or group of individuals acting independently of any existing organization. The second step they proposed was determining the performance measure to be taken into account, namely the financial performance of the firm, performance of the firm at initial public...
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