The role and contribution of outside board members in micro and small enterprises
2016 (English)Conference paper (Refereed)
The purpose of this study is to further the understanding of how outside directors in micro and small enterprises contribute to the development of these firms.
Many studies has emphasized the importance of external directors on company boards, especially in small firms. However, this area has still received little attention by researchers and the external representatives in micro and small firms are very few. The service role is deemed to be most important due to the lack of internal resources in small firms.
Interviews have been conducted with 50 small business owners in Sweden identifying 12 companies with external directors who have been examined further.
Guided by the internal need within the corporation the external directors in general fill 2 different roles. Either as long term supporters of the owners or as a complement to the owners questioning their choices and providing specific expertise. Outside funding can often work as a catalyst for including external directors on the board.
Implications and Value
This article focus on boards in micro and small firms which has previously been neglected and highlight the service role of external directors and how this role is utilized in different ways.
Place, publisher, year, edition, pages
corporate governance, SMEs, board of directors
Research subject Business Studies
IdentifiersURN: urn:nbn:se:umu:diva-131746OAI: oai:DiVA.org:umu-131746DiVA: diva2:1075693
Research in Entrepreneurship and Small Business, RENT