Determinants of intra-board behavioral integration in high-tech start-ups

Ekaterina Bjørnåli (), Sarosh Asad () and Siri Terjesen ()
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Ekaterina Bjørnåli: Norwegian University of Science and Technology
Sarosh Asad: University of Groningen
Siri Terjesen: Florida Atlantic University

Journal of Management & Governance, 2024, vol. 28, issue 1, No 8, 215-236

Abstract: Abstract The board of directors’ behavioral dynamics can strongly influence an entrepreneurial firm’s success. Drawing on the behavioral theory of corporate governance, this study identifies and tests factors that facilitate behavioral integration in boards of high technology start-ups. We unpack the black box of board behavior with primary data collected from a survey-based sample of 149 CEOs of Norwegian high-tech start-ups supplemented by quantitative archival information. We find that intra-board behavioral integration (i.e., board members’ propensity to clearly understand one another’s issues and needs, actively solve, and share relevant information and resources) is positively affected by greater levels of informal communication between CEOs and board members. Next, we find that inter-board trust (i.e., board members interact with absolute integrity, tell the truth at meetings, trust one another, and keep mutual promises) mediates this relationship such that higher levels of inter-board trust result in greater concordance between information communication frequency and inter-board behavioral integration. We then examine the role of an efficacious board chair who motivates and uses each board member’s competence, formulates proposals for decisions and summarizes conclusions after board negotiation, and chairs board discussions without promoting their agenda, finding that efficacious board chair leadership moderates the relationship between informal communication frequency and intra-board trust. We discuss the implications of these findings for the theory and practice.

Keywords: Board of directors; Board chair leadership; Trust; Behavioral integration; Corporate governance; Entrepreneurship (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10997-023-09679-4

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