Corporate governance and performance of small high-tech firms in Sweden

The approach uses data from a sample of 183 small high-tech firms, new, technology-based firms (small high-tech firms) in Sweden (54 variables under the headings of work experience, board and advice, financing, motivation-performance priorities, technological innovation and strategy). This study identifies some core areas of importance in corporate governance. Few managers in this study had a strong background and experience of finance and the preparation of business. Only 64 per cent of the managers have had previous work experience before starting the firm. The survey makes it clear that the small high-tech firms are likely to have a strong link with banking institutions. The consequence of these links is that most of the firm's capital supply is from banks, and that there are strong ownership links between banks and industry. The background of the founder does seem to have had an effect on the problem of financing and ownership issues. It is private sector organizations (banks) and families that are most frequently consulted by small high-tech firms (However, low means). It is also the private and public sector organizations, in connection with external board membership, regional development agencies and banks that are most frequently consulted. In the future, it is reasonable to search for factor patterns that can begin to explain and predict the direction of corporate governance in small new technology-based firms. (C) 2005 Elsevier Ltd. All rights reserved.