Value-creating boards in SMEs: Team production efforts

Abstract

This study theoretically and practically contributes to show how boards in SMEs can contribute to value-creation. Furthermore, a value-creating conceptual framework is developed integrating an extended team production theory. Team production theory has its roots in law and economics, and it is an alternative to agency theory (Blair & Stout, 2001). The extended team production theory has a focus on leadership and managerial behavior, and it integrates core strategy perspectives from both industrial organization and resource approaches. We were honored that an extended version of this article recently accepted for publication in the Handbook of Research in Corporate Governance and Business Ethics (Gabrielsson & Huse, 2023). In this present article, we specifically showcase to what degree boards in practice may create or destroy values within the organization and we apply a novel lens of extended team production theory to do this.