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CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University Papers in Innovation Studies, CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University

No 2006/7:
Board control and corporate innovation: an empirical study of small technology-based firms

Jonas Gabrielsson () and Diamanto Politis ()

Abstract: This paper follows a behavioural perspective on boards and governance in exploring the influence of board control on corporate innovation in small technology-based firms. An analysis of 135 Swedish technology-based firms suggests that board involvement in decision control may influence corporate innovation. The empirical results show that board involvement in strategic decision control is positively associated with process innovation, while board involvement in financial decision control is positively associated with organizational innovation. No association is found between board involvement in decision control and product innovation. Overall, the findings suggest that board involvement in decision control may promote corporate innovation but that different kinds of decision control influence different forms of innovation.

Keywords: boards of directors; corporate innovation; decision control; technology-based firms; small firms; (follow links to similar papers)

JEL-Codes: O30; (follow links to similar papers)

23 pages, June 1, 2006

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