Corporate Directors and Entrepreneurial Innovation: An Empirical Study

Abstract

This paper presents the findings of a study of the association between corporate governance and entrepreneurial innovation in a major Asian metropolitan city. We identified three primary attributes of entrepreneurial innovation: preference for risk-taking, acceptance of changes, and development of new initiatives. While we intended to establish the relationship between corporate governance and entrepreneurial innovation, our research yielded mixed results. CEO/Chairman duality was found to be positively related to preference for risk-taking and development of new initiatives of firms, but not to the acceptance of changes in firms. Results also showed that whether directors were executive or non-executive had no significant impact on the level of entrepreneurial innovation of their firms. However, share-ownership of directors was found to be related to risk-taking preference, but not to acceptance of changes and development of new initiatives of firms.