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Board Formation and Adjustments in New Ventures / 郭國泰 p.1

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Board Formation and Adjustments in New Ventures:

A Resource Dependence Perspective

新創企業董事會之組成與調整：資源依賴觀點

郭國泰國立政治大學企業管理所博士候選人

中華民國九十三年十二月三日


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Agenda

摘要理論背景研究方法主要研究發現及討論意涵及未來研究方向


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摘要


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摘要 -1: 理論背景與研究方法

資源依賴觀點 : 組織存活的關鍵，在於其獲取資源的能力。而許多資源往往不在組

織的控制之下，因此經營者應該設法由組織所處的環境中，獲取生存及成長所需的資源。

資源依賴對於新創企業尤其明顯。為求生存及成長，新創企業常以策略聯盟或創業者個人的網絡等方式，由外界獲取資源，以減低「新之不利 (liability of newness) 」。

本研究認為，董事會也是新創企業獲取資源的一個重要方式。

作者進行了探索性的個案研究，研究對象為五家高科技新創企業。


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摘要 -2: 主要研究發現

董事會的組成並不一定與籌資活動同時發生。當資金來自於機構投資人，而非個人投資者的時候，董事會較可能組成。

董事會的組成，是創業者以部份所有權換取外界重要資源的一種方式。當需要其他更多的資源時，創業者會調整董事會以取得所需的資源。

董事會的調整可分為刻意的 (intended) 調整 : 由創業者發動，以由外界取得資源。被迫的 (demanded) 調整 : 由不滿的董事會成員發動，會減低企業的資源稟賦。

董事會如何提供資源 : 董事會成員運用自己的資產、經驗、聲譽、以及人際網絡來提供個人所擁有的

資源，同時也運用他們的公司的資產、聲譽，以及事業網絡來提供組織所擁有的資源給新創企業。

董事會所提供的資源類型，包括了資金、企業功能、顧問諮詢、商業機會，以及正當性等。

影響董事會組成及調整過程以及資源提供的因素 : 創業投資市場在各國發展的狀況 . 創業團隊本身資源稟賦 . 董事會成員的意圖與資源稟賦 .


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理論背景


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New ventures' survival and growth

Resource dependence perspective: The key to organizational survival is the ability to acquire and maintain

resources” (Pfeffer & Salancik, 1978: 2). Resource dependencies are especially relevant for new ventures.

liability of newness (Stinchcombe 1965). High disbandment rate (e.g. Baum & Oliver, 1991; Carroll & Hannan, 1

989; Hannan & Freeman, 1989; Levinthal, 1991). Different approaches for new ventures to access and acquire ne

cessary external resources: Alliances (e.g. Pisano, 1990, Baum & Oliver, 1991; Miner et al, 1990; S

tuart et al, 1999). Founders' personal networks (e.g. Gulati, 1998; Jarillo, 1989; Larson &

Starr, 1993) Board of directors


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Roles of boards of directors: agency theory vs. resource dependence perspective

Most board researches focused on agency theory and the monitoring Role. e.g. Berle & Means(1932); Fama & Jensen(1983).

Resource dependence theory and the resource provision role is much less emphasized in past board studies.

Researchers called for studies on boards ' resource provision roles in smaller (e.g. Daily, 2002; Huse, 1998) and newer (e.g Daily et al. 2002) firms.


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研究方法

Board Formation and Adjustments in New Ventures / 郭國泰 p.

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Research methodology

Exploratory case studies on 5 high-tech new ventures. Purposeful sampling (Patton, 1990) to select new (McDougall et al,

1994) and small (Hodgetts & Kuratko, 1998) firms. Data collected from both in-depth interviews with founders/CEOs/

CTOs/managers (90 minutes for each interview on average) and publicly available archival sources, including company websites and documents (such as financial reports, annual reports, corporate press releases, public conferences, and magazine or newspaper reports).

Follow-up questions and answers were conducted via email communications iteratively. The data obtained from interviews, email and archival sources were triangulated, revealing a high level of consistency (Denzin, 1978; Janesick, 1994).


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主要研究發現及討論


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A summary of the companies examined

3UpSystems

GroundhogTechnologies

CWebTechnology

Shesay.comWinPerTurn

Corp.

Industry Hardware Software SoftwareInternet/service

Software

Mainproducts/services

Bladeservers

Cellular phonemobility

managementsoftware

Melodyrecognition

software andfirmware

Chinesefemale

communitywebsite

Real-timemulti-lingual

transformationsoftware

Country founded US US Taiwan Taiwan US

Year founded 2001 2001 1999 1999 1997

Year board formed 2001 2002 1999 1999 2001

Number ofemployees (2004)

10+ 20+ 20+ 5+ 20+


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3UPSystems

Groundhog Technologies

CWebTechnology

Shesay.comWinPerTurn

Corp.

Initial funding source

VCFamily &

friends

Family &friends; corporate investors

Corporate investors

Founders

Resources acquired in initial fund

raising

Financial capital; business

functions; consultation;

business opportunities;

legitimacy

Financial capital;

consultation; business

opportunities;

Financial capital; business function;

office space

Financial capital

Founders’ endowments

Second funding source

(Corporate investors)

VCs; corporate investors

Corporate investors

Family & friends

VCs; corporate investors

Resources acquired in

additional fund raising

Unknown yet (joint R&D and other

cooperation efforts are expected)


functions; consultation;

business opportunities;

legitimacy


function (joint product

development); legitimacy (product

credibility)

Financial capital

Financial capital;

legitimacy

Notes : Indicating the formation of the board. Indicating the adjustment of the board.

“ Shaded cell” representing resources provided by board members

time

A summary of board formation/adjustment processes and resource provisions.

(also available on p.3-24 of the paper)


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Processes of board formation and adjustments

Board formations did not always coincide with financing activities.

A board of directors is more likely to be formed when institutional investors participate.

Formation of the board as an exchange of partial ownership for critical external resources.

Adjustments of the board: “intended”vs. “demanded”


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Types of resources provided by the board

Financial capital Functional expertise Consultation Business opportunities Legitimacy


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Means of resource provisions and types of board members

(1) Founders (2) Family & friends (3) Venture capitalists

(4) Corporate investors

Personally endowed resources (individual level)

Assets

Founders’ endowments

Financial capital Financial capital Financial capital

Experience Consultation Consultation Consultation

Reputation Individualendorsements

Individual endorsements

Individual endorsements

Personal networks Customers, business partners,channels

Customers, business partners, channels

Customers, business partners, channels

Organizationally endowed resources (firm level)

Assets

(Not applicable)

(Not applicable)

Financial capital Financial capital

Reputation Organizational endorsements

Organizationalendorsements

Business networks Customers, business partners, channels

Customers,business partners, channels


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Factors influencing board formation/adjustment processes and resource provisions

Maturity of venture capital industry Founders ' resource endowments Financiers' intentions and resource endowments


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意涵及未來研究方向


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Implications for theories and future research suggestions

For new venture survival and growth theories New ventures do rely on board members to obtain resources, but this

approach has its price and risks. Future research suggestions:

• a comparative perspective (alliances, networks, boards)

• more in-depth studies on the board as a means of resource provision

• an organizational life cycle perspective

For corporate governance theories Board formation as an exchange of partial ownership for critical

external resources. Future research suggestions: an organizational life cycle perspective.


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Managerial implications

Implications for entrepreneurs Financial capital is far from being the only criterion for choosing board

members. In addition to mobilizing personal networks or soliciting alliances to

access and acquire necessary resources, entrepreneurs can sometimes consider adding new resourceful board members as an alternative.

Possible side effects such as dilution of ownership or loss of power need to be taken care of as well.

Implications for financiers (VCs, corporate investors) The most successful investors contribute critical resources to nourish the

young firms they invest, so they assure high returns on their investment. Constantly enhancing the resource endowments is a must for investors

to compete in the harsh entrepreneurial financing market.


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Thank you. Any questions?

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