The Role of Governmental Venture Capital in the Venture Capital Ecosystem: An Organizational Ecology Perspective

Bertoni, Fabio; Colombo, Massimo G.; Quas, Anita

doi:10.1177/1042258717735303

Cited by 60 publications

(64 citation statements)

References 70 publications

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“…Although this study addressed the advantages of focusing on the U.S. context, there could be some room for further research opportunities using non-U.S. samples to include cultural or policy-wide differences of VC investment. Given the startup and VC ecosystem could be different across countries [83], future research can consider institutional variables and cross-national dimension by collecting cross-country data. Second, Tobin's Q has a limit for revealing the startups' financial performance or actual value.…”

Section: Discussionmentioning

confidence: 99%

The Role of Venture Capital Investment in Startups’ Sustainable Growth and Performance: Focusing on Absorptive Capacity and Venture Capitalists’ Reputation

Jeong¹,

Kim

Son

et al. 2020

Sustainability

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This study provides evidence on how venture capital (VC) investment affects startup firms’ sustainable growth and performance. Despite the rich and abundant research on the relationship between VC investment and startup performance, there is no clear evidence about the contribution of VC investment on the performance and market value of invested firms. In order to accurately measure the impact of VC investment, this study explored how VC investment at each stage of growth affects a startup’s sustainable growth and performance. Based on signaling theory and information asymmetry, this study proposed a positive link between initial-stage VC investment and a startup’s growth and performance. Using a sample of 363 firms listed from 2000 to 2007, this study demonstrated that startups are sustained and perform better as they receive their VC investment at the initial stage. The level of potential absorptive capacity positively moderated this association, unlike realized absorptive capacity, which did not show significant moderating effects.

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Section: Discussionmentioning

confidence: 99%

The Role of Venture Capital Investment in Startups’ Sustainable Growth and Performance: Focusing on Absorptive Capacity and Venture Capitalists’ Reputation

Jeong¹,

Kim

Son

et al. 2020

Sustainability

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show abstract

“…When the products and services provided by enterprises are more unique, the business activities in which they engage are different from those of their competitors, and the technical fields in which they invest in research and development are less involved. As a result, they need more special market information to assist them [16,43]. In order to improve the quality of information and obtain complex and rapidly changing information, enterprises usually use highly embedded network relationships in order to ensure the correctness of information and obtain more favorable information [44,45].…”

Section: Hypothesis 3a (H3a)mentioning

confidence: 99%

A Study on the Sustainable Development Strategy of Firms: Niche and Social Network Theory

2019

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In the industrial environment, individual enterprises survive by obtaining specific resources. Niche theory uses adaptations of the organizational niche and the environment to explain the survival opportunities of generalist and specialist organizations. However, it does not explain in depth the key to the sustainable development of many enterprises with poor conditions, which have productive social relationships and can obtain the resources that are needed for sustainable development from these relationships. In this study, 106 valid questionnaires were obtained through e-mail. Taiwanese firms investing in China were taken as the enterprise groups, and SPSS statistical software was used to test the empirical relationships among niche characteristics, network relationships, and enterprise performance. The research draws the following conclusions. (1) When the external environment changes unfavorably, the financial performance of firms with a high degree of network embeddedness and large niche width is poorer than that of firms with a low degree of network embeddedness. (2) When the external environment changes unfavorably, the financial performance of firms with a low degree of network centrality and high niche specificity is better than that of firms with a high degree of network centrality. These results can provide suggestions for management theory and practice.

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“…At the same time, prior work experience in the VC industry is likely to make IEs adept in selecting and supporting their investees [23,[69][70][71]. Such skillsets in themselves constitute a niche resource, which reduces their need to syndicate, and accordingly is likely to lower their intensity of syndication.…”

Section: Prior Vc Investing Experiencementioning

confidence: 99%

Foreign Venture Capital Firms in a Cross-Border Context: Empirical Insights from India

Joshi

Chandrashekar²,

Brem

et al. 2019

Sustainability

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Syndication or co-investment is a potent way of pooling resources among peer Venture Capital (VC) firms. This is even more vital for Foreign VC firms (FVCFs) when investing in destinations that are geographically distant from their countries of origin. Although FVCFs are relatively abundantly endowed in terms of financial capital, they are distinctly disadvantaged in terms of their social capital when investing in geographies that are distinctly different in terms of their institutions, norms, and culture from their own. One of the ways in which FVCFs overcome this impediment is by investing in human resources that serve as a bridge between their financial and social capital. Accordingly, the primary aim of this study is to investigate the relationship between the resources of FVCFs and their syndication intensity. Using the technique of logistic regression, we arrive at several interesting findings. FVCFs with a greater proportion of investment executives with prior founding experience in India and those with lower proportions of professionals of Indian origin demonstrate lower syndication intensity. Similarly, the syndication intensity diminishes with the increase in size of the investing team. FVCFs with greater fund size demonstrate a lower need for syndication. Greater endowment of social capital as proxied by the age of the VC firm is seen to enhance the syndication intensity.

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The Role of Governmental Venture Capital in the Venture Capital Ecosystem: An Organizational Ecology Perspective

Cited by 60 publications

References 70 publications

The Role of Venture Capital Investment in Startups’ Sustainable Growth and Performance: Focusing on Absorptive Capacity and Venture Capitalists’ Reputation

The Role of Venture Capital Investment in Startups’ Sustainable Growth and Performance: Focusing on Absorptive Capacity and Venture Capitalists’ Reputation

A Study on the Sustainable Development Strategy of Firms: Niche and Social Network Theory

Foreign Venture Capital Firms in a Cross-Border Context: Empirical Insights from India

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