Directors in new technology-based ventures: An empirical inquiry

Abstract

In the emerging literature on venture boards, little research examines the association between different categories of venture directors and strategic firm outcomes. We conduct an empirical inquiry into how founder-directors, venture capitalist investor-directors and corporate venture investor-directors are related to inter-organizational alliances, innovation, and exits. In our longitudinal study based on hand-collected data on 156 medical device ventures in the US, we find that founder-directors are positively associated with patents and negatively associated with supply chain agreements. VC-directors are positively associated with exits but are negatively associated with R&D, supply chain agreements and patents. CVC-directors are negatively associated with patents and first product introductions. Adopting an abductive approach, we suggest potential mechanisms based on interviews with venture directors and CEOs and suggest future directions for venture boards scholarship.