For example, board leadership structure affects board strategy involvement in small firms (Machold, et al., 2011), and governance structure, such as ownership, influences debt financing strategy in privately-owned businesses in the U. (Schulze, Lubatkin & Kino, 2003), the CEO compensation strategy in family firms (Gomez-Mejia, Larraza-Kintana & Makri, 2003), the CEO selection strategy (Zajac, 1990), and the corporate R&D investment strategy (Baysinger, Kosnik, & Turk, 1991), which varies from American to Japanese culture (Lee & O'Neill, 2003).
Most studies of ownership in the Chinese context still remain on a general level, which shows that the classifications of firm ownership-state-owned enterprises (SOE), privately-owned firms, and foreign-invested firms-are linked to distinctive types of business strategies (Peng, 2000; Peng, Tan & Tong, 2004; Tan, 2002). The current literature, however, tells us little about how governance structure and selected strategies in Chinese entrepreneurial firms fit together to promote growth momentum resulting in a leading position in the market.
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The two authors contributed equally to the article.
Corporate governance has gradually become an important issue in understanding small and medium-sized enterprises (Gabrielsson & Huse, 2002; George, Wiklund & Zahra, 2005; Huse, 2000; Machold, Huse, Minichilli & Nordqvist, 2011).
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