Abstract Monitoring mechanism is an important kind of institutional arrangement. Based on institutional theory and the dynamic capabilities view, we construct a theoretical framework to examine the relationships among monitoring mechanisms, entrepreneurial competence (EC), and firm performance. Results from a survey of 195 firms show that, a separate leadership structure is positively related to EC, and ownership concentration is negatively related to EC. Furthermore, EC is conducive for firm performance.
|
Received: 13 November 2009
|
|
|
|