Role of Venture Capital in Enterprise Innovation Under Psychological Capital and Heterogeneity of Entrepreneur Capital

Abstract

This paper is to explore the impact of entrepreneurial psychological capital and capital heterogeneity on venture capital behavior, and further analyze the effect of venture capital on the innovation activities of enterprises. Based on the existing research results, this paper proposed hypotheses on the relationship between venture capital and technological innovation. According to the data samples of growth enterprises market (GEM) listed companies from 2010 to 2016, the main research variables were defined and a theoretical analysis model was constructed. The theory and empirical research clarify the relationship between venture capital and technological innovation. (1) According to the regression results of venture capital participation as well as innovation input and innovation output, the regression coefficients of venture capital participation are 0.609 and 0.203, which are significant at the levels of 10 and 1%, respectively. It indicates that venture capital participation has a positive impact on the innovation input and output of enterprises. (2) The coefficient of venture capital participation is positive, and the coefficient of HHI × VC is significantly negative. Therefore, the degree of product market competition has a significant moderating effect on the relationship between venture capital participation and technological innovation. Venture capital provides funding support for technological innovation in startups. At the same time, because it holds a certain percentage of shares, it participates in enterprise innovation activities and provides guidance for companies to maintain profitable growth, thereby improving their innovation awareness and level. This research makes up for the shortcomings of the previous research model that uses a single dimension to measure technological innovation. As a result, this study comprehensively investigates the impact of venture capital on the innovation input and output of enterprises, enhancing the integrity and reliability of previous research conclusions.

Role of Technological Knowledge and Entrepreneurial Orientation on Entrepreneurial Success: A Mediating Role of Psychological Capital

“…PsyCap influencing individual behavior, in turn, fosters the organizations’ performance. In support, the study shows that PsyCap empowers entrepreneurs to have confidence in firms’ performance, thus achieving business success ( Zhang et al, 2020 ).…”

“…PsyCap is a vital trait critically affecting the employees’ work behavior. PsyCap refers to an individual positive mental ability to perform the work task, ultimately gaining business success ( Zhang et al, 2020 ). A healthy environment improves individuals’ capability to work and motivates them to achieve a higher degree of success.…”

A double-edged sword: The effects of R&D intensity and capitalization on institutional investment in entrepreneurial firms

“…Second, VCs differ from non-VCs in expertise. A large body of research finds that, by providing their financial, strategic, and management expertise, VCs have valueadded effects on investees (Chemmanur et al, 2011;Croce et al, 2013;Jin et al, 2020;Zhang et al, 2020;Han, 2021); however, other non-VC institutional investors focus more on influencing or monitoring management (Johnson et al, 2010). Therefore, VCs may have an advantage in evaluating the businesses in the long run, especially on the strategic side, including R&D decisions.…”

The effect of authoritarian leadership on young nurses’ burnout: The mediating role of organizational climate and psychological capital

“…Luthans et al [51] and Wu et al [52] have shown that organizational climate has an impact on psychological capital. A good organizational atmosphere can enhance the cohesion within the organization, motivate employees to achieve their goals with full con dence, enhance the resilience of individual employees, and have an effect on the con dence, hope, optimism and resilience of employees [53]. Furthermore, studies have found that psychological capital can predict individual burnout [48,49].…”