SME growth speed: The relationship with board capital

Abstract

ABSTRACT This study examines the effects of board capital on small and medium enterprise (SME) growth speed using a robust regression model, in a sample of the every firm listed on the MAB (alternative Spanish stock market). We adopted the resource-based view (RBV), the resource dependency perspective, and the Penrosean theory to argue that directors’ characteristics provide the resources required for SMEs to achieve a higher growth rate. Our research concludes that the board’s functional diversity positively affects SME growth, the extent of prior training among the directors of quoted SMEs is higher than expected, and there is no relationship between the previous experience of directors in CEO positions and SME growth.