From Software Business Community

Non-financial value-added of entrepreneurial support networks: sources and implications

Authors

Juhana Peltonen

Abstract or summary

Work in progress, comments welcome

This proposed PhD study investigates the so-called non-financial value-added (NFVA) various stakeholders contribute to SMEs. Typically the term NFVA is used in the context of business angels and venture capitalits, but this study also investigates boards of directors, advisory boards, and the top management teams. While research on differnet forms of value-added contributions shows signs of convergence, several key questions remain unanswered. Among them is the relative significance of the value-added as provided by the different stakeholders and their implications on firm performance. To address this gap, this study aims to examine high-impact management decisions and specific contributions made by different stakeholders in the decision making process. The implicatins of the management decisions are further examined up to level of firm performance and internationalization to provide an overall frame of reference in the impact of value-added. The study will be carried out in the context of high-technology firms in Finland. Structured interviews wil be conducted to map firm-specific timelines of approximately 120 firms. The data will be collected from several informants in each firm over three annual interview rounds. Additional longitudinal data will be utilized from the National Software Industry Survey. The main data analysis will employ multiple regression analysis to robustly analyze the mechanisms through which value-added transfers to firm performance. The results of this study will ultimately help to position NFVA of different stakeholders in terms of its significance to firm performance, and in relation to rival sources of similar support to entrepreneurs.

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