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Full-Text Articles in Social and Behavioral Sciences
From Founders To Firm: Examining The Retention Of Founder-Ceo Social Capital In Venture-Backed Firms, Bret R. Fund
From Founders To Firm: Examining The Retention Of Founder-Ceo Social Capital In Venture-Backed Firms, Bret R. Fund
The Journal of Entrepreneurial Finance
This paper examines how organizations protect themselves from the negative social and economic consequences associated with the loss of a key member and their social capital. Drawing on the social capital and upper echelons literatures, the author(s) hypothesize that social capital can be institutionalized. The corresponding hypotheses are tested on a sample of 125 venture-backed software firms and the results demonstrate that the institutionalization of a founder-CEO’s social capital leads to better performance for a firm. The results provide a basis for understanding how social mechanisms influence economic organization as well as succession and compensation in a new venture context.