SME growth speed: The relationship with boardcapital

Abstract

This study examines the effects of board capital on small andmedium enterprise (SME) growth speed using a robust regres-sion model, in a sample of the every firm listed on the MAB(alternative Spanish stock market). We adopted the resource-based view (RBV), the resource dependency perspective, andthe Penrosean theory to argue that directors’characteristicsprovide the resources required for SMEs to achieve a highergrowth rate. Our research concludes that the board’s func-tional diversity positively affects SME growth, the extent ofprior training among the directors of quoted SMEs is higherthan expected, and there is no relationship between the pre-vious experience of directors in CEO positions and SME growth