Two heads are safer than one: Changes in CEO duality and venture failure
Krause,Ryan Bakker,Rene M. Knoben,Joris
Krause,Ryan
Bakker,Rene M.
Knoben,Joris
Abstract
We study the dynamics of a major design choice in the governance of ventures: whether to distribute power at the top of the venture between a separate CEO and board chair. We propose that ventures are more likely to combine (separate) their CEO and chair positions when operational performance is poor (strong), demonstrating behavior in line with the threat rigidity thesis. Paradoxically, however, ventures would most benefit from a separate CEO and board chair when operational performance is poor. Empirical analysis of data from the Australian mining industry offers general support for our theory, with some interesting nuances. We discuss the implications of our findings for emerging conversations in the literatures on venture boards, boards of directors, and entrepreneurship.
Description
Publisher Copyright: © 2022 The Authors
Date
2022-08
Journal Title
Journal ISSN
Volume Title
Publisher
Research Projects
Organizational Units
Journal Issue
Keywords
board structure, CEO duality, failure, survival, ventures
Citation
Krause, R, Bakker, R M & Knoben, J 2022, 'Two heads are safer than one : Changes in CEO duality and venture failure', Long Range Planning, vol. 55, no. 4, 102218. https://doi.org/10.1016/j.lrp.2022.102218
License
info:eu-repo/semantics/openAccess