||Formal and Informal Board/TMT Relationship on Entrepreneurial Risk Taking: Moderating Effect of Environmental Hostility and Prospector Strategy
||Department of Business Administration
entrepreneurial risk taking
board of directors
This thesis reports the results of a study designed to investigate the relationship between entrepreneurial risk taking and formal or informal board/TMT relationship, with environmental hostility as well as strategy posture of prospector in a sample of 105 Taiwanese firms. Formal board/TMT relationship includes both board passiveness and CEO duality, and informal board/TMT relationship indicates family ties between board and TMT. Moderated hierarchical regression analysis was used to investigate the relative predictive power of contingency approach for exploring association between the board/TMT relationship, and entrepreneurial risk taking within hostile environment and prospector orientation of firms. The empirical finding indicated that there is a negative relationship between board passiveness and entrepreneurial risk taking. Whereas firms facing hostile environment are still risk taking, whether board passiveness influence entrepreneurial risk taking or not. When CEO and chairperson is the same one, CEO duality, is conducive to entrepreneurial risk taking. Whereas the separation of CEO and chairperson is contributive to entrepreneurial risk taking when a firm faces a hostile environment, or when it adopts prospector strategic orientation. However, informal relationship is also good for entrepreneurial risk taking in this study in both situations. Besides, their family members promote entrepreneurship through their skills and it also reduces the information asymmetry as well as agency problem.
Table of Contents iii
List of Tables v
List of Figure vi
Chapter 1 Introduction 1
1-1. Research Background and Motivations 1
1-2. Research Objectives 3
1-3. The Organization of This Study 4
Chapter 2 Literature Review 6
2-1. The Main Effects of Formal Board/TMT Relationship on Entrepreneurial Risk Taking 6
2-2. The Main Effects of Informal Board/TMT Relationship on Entrepreneurial Risk Taking 11
2-3. Moderating Effects of Environmental Hostility 12
2-4. Moderating Effects of Strategic Posture 14
Chapter 3 Research Design and Methodology 17
3-1. Sample and Data Collection 17
3-2. The Conceptual Framework 19
3-3. Measurement 21
3-4. Statistic Method 25
Chapter 4 Analysis and Results 28
4-1. Descriptive Analysis 28
4-2. Data Reliability and Validity 29
4-3. Correlation Analysis 32
4-4. Regression Research 34
Chapter 5 Conclusions and Suggestions 38
5-1. Research Conclusions 38
5-2. Managerial Implications 43
5-3. Limitations and Recommendation for Future Studies 44
Appendix: Survey Questionnaire 53
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