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Entrepreneurship in Medium-Size Companies: Exploring the Effects of Ownership and Governance Systems
Shaker A. Zahra
Georgia State University
Donald O. Neubaum
University of Central Florida
Morten Huse
Center for Church Research, Norway; University of Lund/Halmstad, Sweden
Corporate entrepreneurship (CE), which embodies a company’s innovation and venturing activities, is necessary in today’s competitive markets. CE is important for organizational renewal, the creation of new business, and improved performance. CE, however, requires strong and continued support from the company’s top executives. Data from 231 medium-size manufacturing companies show that commitment to CE is high when: (1) executives own stock in their company; (2) the board chair and the chief executive officer are different individuals; (3) the board is medium in size; and, (4) outside directors own stock in the company. The relationships between the ratio of outside directors and CE, and institutional ownership and CE, are mixed. CE is also positively associated with future company performance.
Journal of Management, Vol. 26, No. 5,
947-976 (2000)
DOI: 10.1177/014920630002600509
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