A contingent model of network utilization in early financing of technology ventures

Most of the entrepreneurship literature has addressed the benefits and necessity of using social network ties as opposed to market methods in early venture finance, but it has largely understated the potential limitations and costs of doing so. Specifically, very sparse research has examined the factors that influence entrepreneurs' choice between using networks versus market methods. In this study, we propose a contingent model of network utilization when approaching initial investors, based on the dimensions of human capital of the entrepreneurs. We test this model with primary field survey data from 226 new high-tech ventures in Singapore and Beijing. The results show that high occupational status and relevant industrial work experience are positively associated with the entrepreneurs' propensity to utilize existing networks by enhancing the resourcefulness of their network ties (social capital); however, such influences are alleviated by entrepreneurs' marketing or managerial experience, which increases the entrepreneurs' ability to interact with strangers (an aspect of social competence)

Knowledges of the creative economy: Towards a relational geography of diffusion and adaptation in Asia

10.1111/j.1467-8373.2006.00313.xAsia Pacific Viewpoint472173-19

Do venture capitalists add value? A comparative study between Singapore and US

This study provides a comprehensive overview of venture capital (VC) funds in Singapore. By examining the effects on their public listed investees, a profile of VC-backed listed companies in Singapore is analysed. It is found that value added of VCs to their investees can be attributed in several aspects: their equity stake taking, board seat, and especially in their timing of initial public offerings (IPOs) to market heights. The findings in the paper have several implications. Although the role of VC firms in Singapore is important in creating public companies, their participation with respect to their investees still lags behind their counterparts in the US. Their value added in management functions needs to be emphasized so that they can contribute more to the investees and thus, enhance their own returns. For companies seeking VC support or already preparing IPO with VC support, they should know what VCs can and cannot provide. For instance, they can expect the VCs to help in the timing of IPOs, but in management support, the help provided by the VCs in Singapore is limited compared to their US counterparts.

Industry dynamics in Growth Triangles : the E&E industry in SIJORI 25 years on

Launched in 1989 and encompassing Singapore, the Malaysian state of Johor, and Batam Island in Indonesia, the SIJORI Growth Triangle sought to market these territories as a ‘single investment destination’ offering differing factor endowments in close proximity. Singapore was the ‘core’ of the region; Johor and Batam occupied the land, labour, and resource-intensive ‘non-core’ spaces. During the 1990s, investment flows into the three territories, particularly in the electrical and electronics (E&E) industry, mirrored this division of labour. Through scrutinising trends in E&E firm entries, nationality, and industry branch in Singapore, Johor, and Batam for the 1993–2012/14 period, this article sheds light on the recent evolution of the E&E sector in the Growth Triangle. We document an increasing disconnect between the three nodes that has substantially reduced SIJORI's significance as an integrated industrial cross-border region