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The more the merrier?: The effect of group size on effectiveness in SMEfunding campaigns
Luleå University of Technology, Luleå.
Umeå University, Faculty of Social Sciences, Umeå School of Business.
Umeå University, Faculty of Social Sciences, Umeå School of Business.
Imperial College Business School, UK.
2010 (English)In: Strategic Organization, ISSN 1476-1270, E-ISSN 1741-315X, Vol. 8, no 1, 43-68 p.Article in journal (Refereed) Published
Abstract [en]

To overcome resource shortages, companies can subscribe to groups that, in competition with other groups,seek to obtain external funding for the joint development of innovations. In this context, the authors argue smaller groups are better equipped to be successful in external funding campaigns. Based on five-year panel data from a sample of 53 Swedish groups of small and medium-sized companies, the authors find support for a claim suggesting that due to the adverse effect of group size on governance and internal cohesion, the costs associated with group size will outweigh benefits, which reduce the ability to compete for external funding. Consistent with their expectations, the authors find that the adverse effect of group size on fundraising effectiveness is mitigated by internal and external governance devices including the presence of external directors on the group board and interlocking board memberships, and by a bottom-up group formation process.

Place, publisher, year, edition, pages
SAGE , 2010. Vol. 8, no 1, 43-68 p.
Keyword [en]
funding campaigns, fundraising, group size, innovation, resource mobilization, size paradox
Identifiers
URN: urn:nbn:se:umu:diva-32394DOI: 10.1177/1476127009360402ISI: 000275232500003OAI: oai:DiVA.org:umu-32394DiVA: diva2:303084
Available from: 2010-03-11 Created: 2010-03-11 Last updated: 2017-12-12Bibliographically approved

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Wincent, JoakimEricsson, Jessica

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