E-Book, Englisch, 253 Seiten, eBook
Heibel Founder Turnover in Venture Capital Backed Start-Up Companies
2009
ISBN: 978-3-8349-8110-3
Verlag: Betriebswirtschaftlicher Verlag Gabler
Format: PDF
Kopierschutz: 1 - PDF Watermark
E-Book, Englisch, 253 Seiten, eBook
Reihe: Innovation und Entrepreneurship
ISBN: 978-3-8349-8110-3
Verlag: Betriebswirtschaftlicher Verlag Gabler
Format: PDF
Kopierschutz: 1 - PDF Watermark
Martin Heibel analyzes founder turnover in German venture capital backed start-up companies. He develops two unique data sets specifically assembled through an experiment and an online survey. His in-depth analyses cover antecedents and performance implications of founder turnover. They combine venture capitalists' as well as entrepreneurs' perspectives on founder turnover, and yield detailed insights into the interaction between financiers and founders.
Dr. Martin Heibel promovierte bei Prof. Dietmar Harhoff, Ph.D., am Institut für Innovationsforschung, Technologiemanagement und Entrepreneurship der Universität München. Er ist Gründer und Geschäftsführer der IntraWorlds GmbH.
Zielgruppe
Research
Weitere Infos & Material
1;Foreword;6
2;Acknowledgement;7
3;Table of Contents;9
4;List of Figures;13
5;List of Tables;16
6;List of Appendices;17
7;List of Abbreviations;18
8;1 Introduction;20
8.1;1.1 Topic and Motivation;20
8.2;1.2 Objective of Research;22
8.3;1.3 Definition of Terms;24
8.4;1.4 Conceptual Framework;25
8.5;1.5 Structure of Thesis;27
9;2 Prior Research and Theoretical Background;29
9.1;2.1 Literature Review;29
9.2;2.2 Research Contribution;35
9.3;2.3 Theoretical Framework of Founder Turnover;37
10;3 Hypotheses and Combined Theoretical Model;58
10.1;3.1 Selection-Related Hypotheses;58
10.2;3.2 Outcome-Related Hypotheses;65
10.3;3.3 Performance-Related Hypotheses;69
10.4;3.4 Combined Theoretical Model;71
11;4 Analysis of VCs’ Founder Turnover Decisions;73
11.1;4.1 Research Design;74
11.2;4.2 Dataset and Variable Description;82
11.3;4.3 Descriptive Statistics;87
11.4;4.4 Conjoint Analysis;104
11.5;4.5 Implications for Subsequent Course of Analysis;111
12;5 Determinants and Impact of Founder Turnover;113
12.1;5.1 Research Design;113
12.2;5.2 Dataset;114
12.3;5.3 Variable Description;129
12.4;5.4 Descriptive Statistics;143
12.5;5.5 Empirical Analysis of Determinants of Founder Turnover;180
12.6;5.6 Empirical Analysis of Performance Impact of Founder Turnover;199
12.7;5.7 Results in the Light of the Theoretical Model;210
13;6 Conclusion;212
13.1;6.1 Results;212
13.2;6.2 Recommendations;214
13.3;6.3 Caveat;216
13.4;6.4 Future Research;217
14;Appendix;219
15;List of References;255
Prior Research and Theoretical Background.- Hypotheses and Combined Theoretical Model.- Analysis of VCs’ Founder Turnover Decisions.- Determinants and Impact of Founder Turnover.- Conclusion.
2 Prior Research and Theoretical Background (S. 11-12)
At the outset of this chapter, in section 2.1, I give an overview of the existing literature on management turnover in start-ups. In section 2.2, I describe existing research gaps and formulate the intended contributions of this thesis to entrepreneurship theory and literature. Subsequently, in section 2.3, three fields of theory and their relevance in the context of founder turnover are presented. First, I look at corporate governance in venture capital financed start-ups. Second, I introduce job matching theory as an important reference. Third, organizational psychology is discussed as a field of theory adding an important relational perspective to the understanding of founder turnover in start-up companies. Chapter 2 lays the foundation for the subsequent derivation of hypotheses to follow in chapter 3.
2.1 Literature Review
This section provides an overview of the most important publications related to founder turnover. I briefly discuss each single contribution before I sum up the results at the end of this section. Broad research on management turnover in large corporations has been carried out since the early 1960s6 and has remained at the heart of corporate governance research and organization theory until recently (Fee and Hadlock 2004, Lucier et al. 2004, Bresser et al. 2007). However, it is not in the focus of this thesis to present the broad literature on management turnover in large companies, but rather to highlight the particularities of founder turnover in venture capital backed start-ups. While managers in large corporations typically have the status of employees, new venture founders are entrepreneurs and hold major shares in their companies.
This leads to important differences between large corporations and rela tively small start-up firms regarding the inherent dynamics affecting management turnover. Wasserman (2003) names three main differences between large company CEO turnover and founder CEO turnover. First, he argues that the separation of ownership and control is much less emphasized in start-up firms than in large corporations. Second, he points out that compared to mature big corporations the identity of organizational founders is tightly linked to that of the organization. Third, with regards to inside versus outside succession, in start-ups successors are quasi always taken from outside of the company – compared to large corporations, where the opposite is observed more often (Borokhovich et al. 1996).
Researchers’ interest in management turnover in small venture capital financed start-up companies can be traced back to the mid 1990s (Lerner 1995). Lerner shows that VCs’ representation on the board of their portfolio companies increases around the time of CEO turnover. According to the common understanding of VCs being active investors he argues that investors increase their monitoring effort around the time of corporate crisis and take action by replacing the CEO. Bruton et al. (1997) look at CEO dismissals by boards of directors on which venture capitalists serve. They conclude that a CEO’s failure on the strategic rather than on the operational dimension leads to his dismissal by the board.
