AN EMPIRICAL INVESTIGATION OF THE UTILIZATION OF EXTERNAL AND INTERNAL BOARD OF DIRECTORS AND MANAGEMENT ADVISORY ASSISTANCE ON THE PERFORMANCE OF SMALL BUSINESS

Diane J. Garsombke University of Wisconsin Superior

Thomas W . Garsombke

University of Minnesota Crookston


Abstract

This article reports the usage and effectiveness of advisory bodies (i.e. advisory boards, boards of directors, management consultants, accountants, family, and friends) that exist in smaller businesses. The authors find that advisory boards have the most significant impact on various company performance criteria. This result implies that strategic marketing and planning is enhanced by the use of advisory boards. Additionally, the authors discover that the entrepreneur's attitude is even more important than previously researched inhibitors of lack of resources to greater use of advisors.

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