UNLOCKING A COMPANY'S SUCCESS INVOLVES INDUSTRY DYNAMICS AND COMPETITION. WHILE MANAGEMENT GETS THE SPOTLIGHT IN RESEARCH, DR. PETER KLEIN, PROFESSOR OF ENTREPRENEURSHIP, DELVES INTO THE ROLE OF OWNERS IN SHAPING A COMPANY'S PERFORMANCE.
How do the experiences, backgrounds, and capabilities of the owners of companies impact how likely the company is to succeed, whether the company will grow. What we think is important about ownership is that the owner is the one who has to decide how a resource or asset will be used under unexpected circumstances. You have the ultimate responsibility over some resources or assets. The buck stops with you.
KLEIN’s RESEARCH REVEALS THE INTRICACIES OF OWNERSHIP COMPETENCE BY EXAMINING THREE SUBCOMPONENTS, WHICH PROVIDE INSIGHT INTO THE DIVERSE ROLES THAT OWNERS PLAY IN THE BUSINESS.
“We can split that up into these subcomponents, matching competence, governance, competence, time competence. So matching competence is the ability to figure out what kinds of assets or resources are a good match for your own ownership capability. Governance competence is governing or managing or creating value out of the resources or assets that you currently own. Timing competence is knowing when to make a change. Many times those three different capabilities go together in the same person or the same team, but they could be separate.”
KLEIN SAYS VARIOUS OWNERSHIP STRUCTURES ALSO IMPACT DECISION-MAKING DYNAMICS AND PERFORMANCE. STAKEHOLDER MODELS SHOULD RECOGNIZE THE UNIQUE ROLE OF OWNERS IN DECISION-MAKING. OWNERSHIP REPRESENTS THE ULTIMATE RESPONSIBILITY FOR A VENTURE'S SUCCESS.
THE BUSINESS REVIEW IS A PRODUCTION OF LIVINGSTON MCKAY AND THE HANKAMER SCHOOL OF BUSINESS AT BAYLOR UNIVERSITY.