Venture capital: The effect of local and global social ties on firm performance

Bringmann, Katja; Vanoutrive, Thomas; Verhetsel, Ann

doi:10.1111/pirs.12261

Cited by 11 publications

(9 citation statements)

References 88 publications

(105 reference statements)

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“…The international network helps firms to be internationally entrepreneurial orientated [54]. As pointed out by Bringmann and Vanoutrive and Verhetsel [55], firms with strong global ties and deep relationship acquire useful resources which configure their innovation competencies and performance while a firm with a lack of ties is often unable to compete effectively in the markets. Therefore, many valuable resources and capabilities can be gained through international network ties and relationship.…”

Section: International Network and Sustainable Competitive Performancementioning

confidence: 99%

Do International Capabilities and Resources Configure Firm’s Sustainable Competitive Performance? Research within Pakistani SMEs

Ullah

Khattak

et al. 2018

Sustainability

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Market conditions in emerging economies are often reported as less stable and volatile. The business sector, especially Small and Medium Enterprises (SMEs) in emerging economies, face several shortcomings including lack of resources, lack of finance, lack of support and lack of human skills, etc. Hence, they look to international support and resources to survive in a long run in the dynamic markets. This research examines the role of international finance, international technology, international experience and international network in SME firms’ Sustainable Competitive Performance (SCP) in Pakistan. SMEs are a major source of employment and value creation and, therefore, are very relevant to Pakistan economic and social development and improved sustainability. Hypotheses were tested on the data set collected from 304 emerging SMEs. After Structural Equation Modelling (SEM) was applied in Analysis of a Moment Structures (AMOS), the results indicate that international finance, international experience and international network significantly positively contribute to SCP, but international technology is not a significant predictor of SCP. This research recommends top managers and policy makers to give enough attention to the particular international resources and capabilities in order to configure their firm survival in the turbulent market.

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Section: International Network and Sustainable Competitive Performancementioning

confidence: 99%

Do International Capabilities and Resources Configure Firm’s Sustainable Competitive Performance? Research within Pakistani SMEs

Ullah

Khattak

et al. 2018

Sustainability

View full text Add to dashboard Cite

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“…Further work by Taylor and Levitt (2005) has focused on knowledge flow, which is an essential part of our study. We have presented valuable content about interorganizational knowledge flows (Baierl et al, 2016;Bringmann et al, 2018;Lee et al, 2017). In the case analysis, we observed that for coopetitors can pool R&D activities and get access to the competitors' resources, as well as knowledge (Bengtsson and Kock, 2000), which can promote innovation (Ritala et al, 2016) and competitiveness.…”

Section: Coopetitive Dynamics and Knowledge Flowsmentioning

confidence: 99%

“…First, the literature suggests that knowledge transfer between VC firms has a positive effect on innovation development in the new ventures (Salvetat et al, 2013;Singh and Stout, 2018;Abrahamsson and Isaksson, 2018). As mentioned in the literature above, VC resources are essential in coopetition and knowledge (Bringmann et al, 2018) as coopetition ensures knowledge transfer as a vital source of competitive advantage in new ventures (Levy et al, 2001;Ilvonen and Vuori, 2013). Accordingly, another knowledge gap emerges regarding the type of relationship between knowledge transfer among VC firms and innovation development in the new ventures.…”

Section: Coopetitive Dynamics and Knowledge Flowsmentioning

confidence: 99%

“…Coopeting firms manage knowledge with skills, processes and systems that enable interorganizational knowledge flows for value creation, maintaining and developing their competitive advantage (Levy et al, 2001). On the other hand, studies found that the resources of the venture capital (VC) firms and their expertise in start-up development and scaling are especially relevant and valuable in coopetition and knowledge management (KM) (Bringmann et al, 2018). Considering the significance of innovation and knowledge flows in new venture development, this study aims to explore the importance of interorganizational dynamics and knowledge flows between coopeting VC firms.…”

Section: Introductionmentioning

confidence: 99%

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Coopetitive dynamics and inter-organizational knowledge flow among venture capital firms

Sindakis

Aggarwal²,

Chen

2019

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Purpose The purpose of this paper is to analyze important theoretical work conducted in the research streams of coopetition dynamics and knowledge flows in the area of start-up entrepreneurship. The authors see in practice that venture capital (VC) firms are a highly essential component of the environment that gives birth to entrepreneurial ventures, helping them to grow profoundly. Interorganizational collaborations facilitate VC firms to be a beneficial partner because except for providing funding, they also possess knowledge-based resources to support the new business. Design/methodology/approach A systematic review of the literature was conducted, using relevant keywords and academic databases. Then, the backward search was implemented to examine the references of the selected papers, and finally, the forward search to explore the citations of the selected papers. After the selection of papers, they were classified according to their content. A thorough search of the extant literature was done in Scopus and Google Scholar using a combination of keywords such as coopetition, knowledge flows, VC firms, interorganizational and inter-firm knowledge dynamics. Findings This paper highlights the capability of venture capitalists and provides insights as to how knowledge transfer and sharing between VC firms affect new venture’s growth and prosperity. Research limitations/implications This paper attempts to provide new perspectives and explore the significance of interorganizational coopetition and knowledge transfer and sharing between VC firms when they take part in the support and development of new ventures (e.g. start-ups). A theoretical model is proposed via the coopetition dynamics and inter-firm knowledge flows in the VC sector framework. Originality/value This paper adds to the existing theoretical knowledge and underlines the topic of interorganizational coopetition and knowledge flows between VC firms. This is the first attempt, on the one hand, to link inter-firm knowledge flows and new venture development, while on the other to examine the dynamics between VC firms and the collective contribution for the growth of start-ups.

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“…For the start-ups, finance and advisory services provided by the CBVCs are indispensable for not only its survival (Bertoni et al, 2015;Faria & Barbosa, 2014) but also its internationalization (Humphery-Jenner & Suchard, 2013). An interesting fact shown in prior research is that foreign VC firms outperform the local counterparts in terms of value-adding service (Bringmann et al, 2018). As a result, portfolio financed by CBVCs is more likely to succeed in Initial Public Offering (IPO) (H. Chen et al, 2010).…”

Section: Introductionmentioning

confidence: 99%

Going Abroad, Friends on Board: Cross-Border Venture Capital and Syndication Strategy in China

2021

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Cross-border venture capitals (CBVCs) are increasingly prevailing in recent decades, inter alia in emerging markets like China. The venture capital (VC) firms investing outside their home countries are faced with foreignness which is broadly regarded as liability. The primary aim of this article is to contribute to our understanding how foreignness affects VC’s strategy when entering emerging markets, particularly with respect to the foreignness originated from cultural distance. The data consist of over 5,000 CBVC deals taking place in China mainland from 1988 to 2016. Our empirical study shows that, with foreignness growing, it turns from liability into advantage in the context of CBVCs. We find an inverse U-shape relationship between foreignness and syndication, with VC firm’s reputation as the moderator. Besides, foreign VC firms establish local subsidiary when faced with foreignness, which serves as alternative to syndication. The key contribution of this article is that foreignness turns from liability into advantage in emerging markets, which exerts a curvilinear impact on the entry strategy of VC firms. This study advances the knowledge of foreignness and VC strategy, and sheds new light on entrepreneurial activities in emerging markets.

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Venture capital: The effect of local and global social ties on firm performance

Cited by 11 publications

References 88 publications

Do International Capabilities and Resources Configure Firm’s Sustainable Competitive Performance? Research within Pakistani SMEs

Do International Capabilities and Resources Configure Firm’s Sustainable Competitive Performance? Research within Pakistani SMEs

Coopetitive dynamics and inter-organizational knowledge flow among venture capital firms

Going Abroad, Friends on Board: Cross-Border Venture Capital and Syndication Strategy in China

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