(De)centralized governance and the value of platform-based new ventures: The moderating role of teams and transparency

Pierluigi Martino (), Tom Vanacker (), Igor Filatotchev () and Cristiano Bellavitis ()
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Pierluigi Martino: University of Pisa
Tom Vanacker: Ghent University
Igor Filatotchev: King’s College London
Cristiano Bellavitis: Syracuse University

Small Business Economics, 2025, vol. 64, issue 4, No 9, 1763-1790

Abstract: Abstract Drawing on institutional and demand-side perspectives, we investigate performance implications of (de)centralized governance modes in platform-based new ventures, and the conditions under which (de)centralization generates more value. Using a sample of 1,431 Initial Coin Offerings (ICOs), a new source of entrepreneurial finance, we find that centralization of decision-making is positively associated with platforms’ market value. Further, we consider how platform characteristics affect this relationship, finding that both the presence of an experienced Chief Technology Officer (CTO) and project transparency negatively moderate the positive relationship between centralization and market value. Thus, decentralized platforms need leaders with technical experience and project transparency to generate more value. Overall, this study provides a better understanding of the boundary conditions that increase the value of (de)centralized governance.

Keywords: Entrepreneurial finance; Platform governance; Decentralization; Platform performance; Initial Coin Offerings; Demand-side theory (search for similar items in EconPapers)
JEL-codes: G10 G23 G30 L26 M13 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11187-024-00964-6

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