The effects of organizational learning on innovation and performance of venture capital-backed firms: the moderating effect of syndication

Abstract

PurposeDespite the innovation and performance of venture capital (VC)-backed firms receiving extensive attention, how and under what conditions VC influences innovation and performance remains unclear. The present paper draws on organizational learning (OL) theory to examine the moderating effect of syndication on backed firms.Design/methodology/approachDrawing on a literature review that connects OL and innovation to the performance of VC-backed firms, this study examines the effects of OL on innovation and firm performance among these firms by questioning the moderating effect of VC syndication. A sample of 78 VC-backed firms was used to test the robustness of the proposed model and causal relationships through the use of partial least squares structural equation modeling (PLS-SEM).FindingsThe empirical evidence demonstrates that the intervention of venture capitalists can not only stimulate innovation, but also have a significantly positive effect on firm performance. Furthermore, the evidence reveals that syndication of VC investment supports backed firms in improving the firms' performance and generating innovation from acquired knowledge.Originality/valueTo the best of the authors' knowledge, this study is the first in North Africa that focuses on the moderating effects of venture capital syndication on the relationships between OL, innovation and firm performance.

The effects of the COVID-19 pandemic on tourism entrepreneurial intention among university students: The role of entrepreneurship education

“…The evaluation criteria depend on whether the constructs used in the model are reflective or formative (Hair et al, 2017). In this study, a reflective model is used, and the evaluation criteria adopted are commonly used by the scientific community to assess and interpret results established through the PLS-SEM method (Götz et al, 2010; Hair et al, 2017; Laachach and Ettahri, 2023b; Sarstedt et al, 2014; Tenenhaus et al, 2005).…”