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The cognitive dimension of corporate governance in fast growing entrepreneurial firms

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  • Peter Wirtz

    (Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon)

Abstract

This article explores the specific morphology and functioning of the governance system of fast growing entrepreneurial firms. Corporate governance is conceptualized as a complex system composed of different mechanisms and various actors, reaching beyond the corporate board and its members. To explain the link between the governance system at large and growth, I build on a general model of corporate governance first proposed by Charreaux (2008), where governance potentially influences managerial behavior through two levers: financial discipline and cognition. I argue that, in the specific case of entrepreneurial firms, corporate governance may play a central role in sustaining high levels of growth through the extensive use of the cognitive lever. Beyond its theoretical implications, the model is also instrumental in providing a consistent framework for an exploration of existing empirical research. I review research specifically devoted to the governance of entrepreneurial firms which experience strong growth and find support for the rationale underlying the proposed model.
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  • Peter Wirtz, 2011. "The cognitive dimension of corporate governance in fast growing entrepreneurial firms," Post-Print halshs-00642749, HAL.
    • Handle: RePEc:hal:journl:halshs-00642749
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    Cited by:

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    4. Dziri Houda & Jarboui Anis, 2017. "The venture capitalist’s cognitive approach: Validation through the Tunisian context," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1323371-132, January.
    5. Fernández-Pérez, Virginia & Alonso-Galicia, Patricia Esther & Rodríquez-Ariza, Lázaro & Fuentes-Fuentes, María del Mar, 2015. "Professional and personal social networks: A bridge to entrepreneurship for academics?," European Management Journal, Elsevier, vol. 33(1), pages 37-47.
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    9. Manel Gharbi & Anis Jarboui, 2023. "Ownership Structure, Board Characteristics, and Firm Diversification: Evidence from an Emerging Country," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 3-20.
    10. Christophe Bonnet & Peter Wirtz & Martine Séville, 2013. "Nascent Governance: The Impact Of Entrepreneurial Finance On Board Formation And Roles," Grenoble Ecole de Management (Post-Print) halshs-00850021, HAL.
    11. Peter Wirtz, 2019. "Are Corporate Governance Theories Relevant to Account for the History and Long- Term Survival of Old Catholic Orders?," Working Papers hal-02083983, HAL.
    12. Laurence Cohen & Peter Wirtz, 2018. "Caractéristiques des entrepreneurs, finance entrepreneuriale et trajectoires de croissance," Working Papers hal-01723858, HAL.
    13. Saïsset, L.A. & Couderc, J.P., 2013. "Les trois dimensions de la gouvernance coopérative : à la recherche d'un équilibre instable. Le cas des caves coopératives en Languedoc-Roussillon [France]," Working Papers MoISA 201302, UMR MoISA : Montpellier Interdisciplinary center on Sustainable Agri-food systems (social and nutritional sciences): CIHEAM-IAMM, CIRAD, INRAE, L'Institut Agro, Montpellier SupAgro, IRD - Montpellier, France.
    14. Sara Sassetti & Giacomo Marzi & Vincenzo Cavaliere & Cristiano Ciappei, 2018. "Entrepreneurial cognition and socially situated approach: a systematic and bibliometric analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 116(3), pages 1675-1718, September.
    15. Lepage, Fanny & Cheriet, Foued, 2021. "Gouvernance et croissance des grandes exploitations agricoles : la place de l’agri-entrepreneur," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 375(January-M).
    16. Louis-Antoine Saïsset & Géraldine Riviere-Giordano & Paul Amadieu, 2016. "The key role of stakeholders on wine cooperatives governance and performance," Post-Print hal-02742867, HAL.
    17. Philippe Desbrières, 2012. "Les apports de la stratégie à la finance entrepreneuriale - The contributions of strategy to entrepreneurial finance," Working Papers CREGO 1120801, Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations.
    18. Joëlle Bédat & Peter Wirtz, 2023. "The scale-up process and the nascent board’s modus operandi : The role of attention and self-efficacy [Processus de scale-up et fonctionnement du CA naissant : Le rôle de l’attention et de l’autoef," Post-Print halshs-04054887, HAL.
    19. Hamza Fadhila & Azouzi Mohamed Ali & Jarboui Anis, 2014. "CEO's commitment bias, ownership concentration, and innovation decision: Behavioral management of CEO's discretion," Cogent Economics & Finance, Taylor & Francis Journals, vol. 2(1), pages 1-24, December.
    20. Sarah Tiba & Frank J. van Rijnsoever & Marko P. Hekkert, 2019. "Firms with benefits: A systematic review of responsible entrepreneurship and corporate social responsibility literature," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(2), pages 265-284, March.

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