The Dynamics of Entrepreneurial Contexts
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The Dynamics of Entrepreneurial Contexts

Frontiers in European Entrepreneurship Research

Edited by Ulla Hytti, Robert Blackburn and Silke Tegtmeier

Context is everything in entrepreneurship research. This book compellingly demonstrates the ways in which the distinctive European cultural, societal and geographic environments enable research into new entrepreneurial phenomena. It also gives guidance as to how future research should endeavour to understand the influences of context.
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Chapter 7: Building dynamic capabilities – chairperson’s leadership, knowledge and experience in SMEs

Daniel Yar Hamidi

Abstract

This chapter aims theoretically and empirically to balance firm internal and external perspectives on board work and chairpersonship in the empirical setting of small and medium-sized enterprises (SMEs). The chapter advances our understanding of the effects of chairpersons on building dynamic capabilities towards innovativeness in SMEs. We apply and integrate a team production perspective with strategic management research to examine the effects of chairpersons’ leadership, knowledge and experience on building dynamic capabilities. We develop hypotheses and test these on data from multiple respondents in 315 small and medium-sized Norwegian enterprises. Our results show that chairperson leadership has a strong significant effect on firms’ ability to build dynamic capabilities. We also demonstrate in our analysis that chairpersons’ firm-specific knowledge has a robust positive association with firms’ abilities to build dynamic capabilities. However, our examination also reveals that chairpersons’ industry experience has a moderate reverse effect on firms’ abilities to build dynamic capabilities.

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