Crossing the Threshold from Founder Management to Professional Management: A Governance Perspective

14 Pages Posted: 11 Jul 2004

See all articles by Eric Gedajlovic

Eric Gedajlovic

Simon Fraser University (SFU) - Strategy and Business Economics

Michael H. Lubatkin

University of Connecticut - Department of Management

William S. Schulze

Case Western Reserve University - Department of Marketing and Policy Studies

Abstract

We argue that the challenges faced by threshold firms are deeply rooted in governance characteristics (i.e. the incentives, authority and legitimacy) which imbue them with characteristic capabilities, disabilities and path dependencies. Whereas Zahra and Filatotchev (2004) reason the principal problem facing threshold firms relates to organizational learning and knowledge management, we posit resource acquisition and utilization to be equally important. Moreover, we argue governance theory is more able than a knowledge-based perspective to explain the root causes of the learning and resource issues faced by threshold firms as well as the complex set of processes involved in their effective management.

Suggested Citation

Gedajlovic, Eric and Lubatkin, Michael and Schulze, William S., Crossing the Threshold from Founder Management to Professional Management: A Governance Perspective. Journal of Management Studies, Vol. 41, No. 5, pp. 899-912, July 2004, Available at SSRN: https://ssrn.com/abstract=559308

Eric Gedajlovic

Simon Fraser University (SFU) - Strategy and Business Economics ( email )

2053 Main Mall
Vancouver, BC V6T-1Z2
Canada

HOME PAGE: http://www.gedajlovic.com

Michael Lubatkin (Contact Author)

University of Connecticut - Department of Management ( email )

Storrs, CT 06269-1041
United States

William S. Schulze

Case Western Reserve University - Department of Marketing and Policy Studies ( email )

Cleveland, OH 44106
United States

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