Abstract

Recently, there has been increased interest for the business planning/small firm performance relationship. Whereas prior studies found a positive relationship between business planning and small firm performance, it is not clear which factors drive strategic decision-makers in small firms to have attention for the long-term strategy of the firm. Two important channels to impact the strategic direction of a firm are ownership and the board of directors. We first investigate the direct effects of ownership concentration and outside board member (OBM) presence on the long-term strategic attention (LTSA) of start-ups. Subsequently, we focus on the interaction effect between the two governance variables.

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