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Board task performance in small owner-managed companies - Exploring a construct through three case studies.

Publiceringsår: 2009
Språk: Engelska
Dokumenttyp: Working paper


It is far from evident that small owner-managed companies can use the capacity of a board of directors. A well known construct of board task performance is expressed in the activities of control, strategy making, and service (C-SM-S construct). The aim is to explore the construct, which has been derived from studies on large and medium-sized companies, in a new setting.

The analysis of three case studies shows some misfits between the C-SM-S construct and sheds new light on the construct. For small companies, the existence of a board is not self-evident but determined by internal or external pressures. The board process seems to be incremental. Agency control is replaced by company control.The board’s task in strategy-making seems to be to direct the owners’ attention to the long-range view. The service task seems to be the most obvious for the board. Hypotheses for further research are suggested.


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