Abstract:

We examine how venture CEOs can effectively resolve stalemates with new professional executives. Using multi-case inductive method, we analyze 21 actual top management team (TMT) stalemates – a communication breakdown between task-dependent parties – through in-depth interviews with CEOs, new executives, and incumbent members in four Hong Kong fintech ventures that raised venture capital. We primarily contribute to venture strategic leadership in several ways. We introduce stalemates as a key social challenge associated with TMT professionalization in scaling ventures. More importantly, we induct a contingency framework of four CEO behaviors for resolving emergent stalemates. We found that effective CEOs use private mediation for horizontal stalemates and use structural crafting for vertical stalemates, but not vice versa. In contrast, CEO-led open discussion and CEO’s closure, resolution behaviors suggested in prior literature, were ineffective for both vertical and horizontal stalemates. Finally, we offer a fresh vision of leadership brokering by highlighting the space in which the brokering occurs and revealing the constructive aspect of divisive brokering. We conclude by discussing the resolution choice perspective and suggesting boundary conditions of our framework. Overall, our study enriches the theoretical conversation on venture strategic leadership. 

General information:

Attendance to this seminar is possible by invitation only. Please send an e-mail to secbs-abs@uva.nl if your are interested in attending this seminar.