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Founder/Chief Executive Officer Exit: A Social Capital Perspective of New Ventures

Charles E. Bamford, Garry D. Bruton and Yvonne L. Hinson

Journal of Small Business Management, 2006, vol. 44, issue 2, 207-220

Abstract: The founder/chief executive officer (CEO) exit is a significant event for all business organizations. However, a social capital perspective suggests that the exit of the founder/CEO may be more disruptive for new start‐ups due to the critical role the founder/CEO plays in the new organization and the heightened potential chance for failure of a new venture. A social capital perspective suggests that the ability of the entrepreneurial firm to perform better is affiliated with the social capital within the organization. This study supports a social capital perspective of CEO exit and social capital's impact on performance. It helps establish a foundation of study of CEO exit and new ventures from this perspective.

Date: 2006
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Citations: View citations in EconPapers (4)

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DOI: 10.1111/j.1540-627X.2006.00164.x

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