Is Board Capital a Double-Edged Sword? New Entry Threats and Firm Performance: On Examining the Moderating Role of Board Capital

Yang Pan, Peng Huang, A. Gopal
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引用次数: 1

Abstract

A significant part of the fast-moving dynamics in the high-tech industries is due to the high rate of new entry in the form of entrepreneurial ventures. Leveraging a novel measure of new entry threats using text mining, we test the conjecture that threats from new entry lead to deterioration in operational performance. In addition, we hypothesize that the relationship is moderated by corporate board capital, a proxy of the board’s ability to leverage outside resources. We distinguish board capital breadth, measuring the diversity or heterogeneity of the board’s social ties, from board capital depth, or the embeddedness of the board in the focal firm’s industry. Our evidences show that a higher level of new entry threats indeed leads to an incumbent’s performance deterioration. Interestingly, we find that the moderating effect of board capital depends on its nature: particularly, board capital breadth mitigates the negative impact of new entry threats, while board capital depth strengthens the negative relationship between new entry threats and firm performance. We discuss the implications for research and practices.
董事会资本是一把双刃剑吗?新进入威胁与公司绩效:董事会资本的调节作用考察
高科技产业中快速发展的动力的一个重要部分是由于创业企业形式的新进入率很高。利用使用文本挖掘的新条目威胁的新度量,我们测试了新条目威胁导致操作性能恶化的猜想。此外,我们假设这种关系受到公司董事会资本的调节,董事会资本代表了董事会利用外部资源的能力。我们将董事会资本广度(衡量董事会社会关系的多样性或异质性)与董事会资本深度(或董事会在焦点公司所在行业的嵌入性)区分开来。我们的证据表明,较高水平的新进入者威胁确实会导致在职者的绩效恶化。有趣的是,我们发现董事会资本的调节作用取决于其性质:特别是董事会资本宽度减轻了新进入威胁的负面影响,而董事会资本深度加强了新进入威胁与公司绩效之间的负向关系。我们讨论了对研究和实践的影响。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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