Resolving the Tensions between Monitoring, Resourcing and Strategizing: Structures and Processes in High Technology Venture Boards

41 Pages Posted: 28 Jul 2010

See all articles by Joanne J. Zhang

Joanne J. Zhang

University of Cambridge

Charles Baden‐Fuller

City University, London - Cass Business School; University of Pennsylvania - The Wharton School

John Pool

City University, London - Cass Business School

Date Written: July 27, 2010

Abstract

There are central tensions between the two sides of the board’s functions: that of controlling and monitoring versus that of resource gathering and strategizing. Drawing upon a field study lasting 38 months involving 8 new ventures in the UK high technology sector, we took a close look at the structural composition, knowledge base and behaviours of the board of directors in the early stage high technology ventures. Our findings suggest that the early venture board, often consisting of part-time members with diverse knowledge background, can be seen as an extension of the full time internal top management team. As “collective entrepreneurs,” they play a vital role in the venturing process; pointing to a collaborative model between inside top management team and outside board directors, which goes beyond the principal-agency model. We discuss the wider implications of our work for the field generally.

Keywords: Boards, High Technology Ventures, Processes

JEL Classification: M10, M13

Suggested Citation

Zhang, Joanne J. and Baden-Fuller, Charles and Pool, John, Resolving the Tensions between Monitoring, Resourcing and Strategizing: Structures and Processes in High Technology Venture Boards (July 27, 2010). Available at SSRN: https://ssrn.com/abstract=1650069 or http://dx.doi.org/10.2139/ssrn.1650069

Joanne J. Zhang

University of Cambridge ( email )

Judge Business School Building
Trumpington Street
Cambridge, CB2 1AG
United Kingdom

Charles Baden-Fuller (Contact Author)

City University, London - Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

John Pool

City University, London - Cass Business School ( email )

London
United Kingdom

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