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

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