Board structure and corporate entrepreneurship: A case study of U.K

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This study examines the relationship between corporate governance that is board structure and composition and corporate entrepreneurship. Existing research examines aspects of governance and entrepreneurship without any consideration of the links that may exist between these two drivers. This study seeks to address this gap. Five propositions were developed to test the relationship of board structure and corporate entrepreneurship: relationship between ratio of outsiders and the level of corporate entrepreneurship; relationship between the presence of outside board of directors with ownership and the level of corporate entrepreneurship; relationship between board size and corporate entrepreneurship level in the organisation; relationship between the frequency of board meetings and entrepreneurial activities; relationship between the frequency of board committee meetings and entrepreneurial activities. A mixed method approach (pragmatic) was employed for testing these 5 propositions in triangulating and elaborating upon the research findings. Two qualitative studies were undertaken to ascertain the nature of corporate entrepreneurship and corporate governance, as they are generally perceived. This, along with other evidences, enabled the development of a corporate entrepreneurship index and corporate governance index. A quantitative analysis using survey and secondary data was then undertaken, based on the FTSE100 companies to ascertain the nature of relationship between these two indices. Qualitative case studies were then used through an interview process to gain deeper understanding of the issues involved. The findings indicated that certain aspects of board structure and composition such as board size, frequency of board and sub-committee meetings were found to impact negatively on entrepreneurial activities. Key words: Corporate governance, corporate entrepreneurship, board structure, board composition, triangulation.