When do Domestic Alliances help Ventures Abroad? Direct and Moderating Effects from a Learning Perspective

While the importance of strategic alliances for new venture internationalization is well acknowledged, the effect of domestic partners remains less understood. Building on organizational learning theory\u27s vicarious learning arguments, we suggest that internationally experienced domestic partners positively influence new ventures\u27 international intensity. Moreover, acknowledging that ventures may have multiple learning sources, we argue that the effect is more pronounced when substituting for the lack of new ventures\u27 top management teams\u27 international experience, or when complementing the insights about foreign markets received from foreign alliance partners. The analysis of 194 publicly held new ventures largely supports our hypotheses

The Impact of Early Imprinting on Evolution of New Venture Networks

Given the argued importance of networks to new ventures, this paper is intended to fill a noted gap in the literature pertaining to the factors that influence the evolution of new ventures\u27 alliance networks. Drawing on the imprinting literature, we propose that one has to look beyond the first partner per se, and instead focus on the extant relationships the initial partner has with other firms. More specifically, we argue and find that the network size and centrality of a new venture\u27s initial alliance partner influence the subsequent size of the new venture\u27s network

Examination of Foreign Venture Capitalists’ Role in Developing Economies

Rizični kapital (eng. venture capital) je odigrao važnu ulogu u Sjedinjenim Američkim Državama, koja se očitovala u podržavanju nastajanja i rasta inovativnih poduzeća te industrija u razvoju. Kao posljedica toga, većina današnje literature odiše primjerima iz iskustva zapadnih zemalja. Međutim, ulagači rizičnog kapitala počeli su se na Zapadu suočavati s prezasićenim domaćim tržištma te su, pridruživši se valu internacionalizacije, sve više počeli iskazivati interes za investicijske prilike u gospodarstvima u razvoju. Ovaj rad stoga daje pregled posebnosti i izazova s kojima se inozemni ulagači rizičnog kapitala suočavaju u ekonomijama u razvoju kroz diskusiju (1) broja, vrste i stadija prilika za investiranje, (2) mogućnosti izlaznih strategija iz istih, (3) te stanja pravnih okvira po pitanju intelektualnih autorskih prava, opće transparentnosti te državnih mjera i politike u ekonomijama u razvoju. Nakon općeg pregleda izazova s kojima se inozemni ulagač rizičnog kapitala suočava, ovaj rad donosi zaključke isticanjem razlika u ulogama koje takvi investitori imaju u ekonomijama u razvoju, a koje su posljedica raspravljanih posebnosti. Vjerujemo da će inozemni ulagač rizičnog kapitala (1) služiti kao selektivni mehanizam, identificirajući poduzeća s jakim potencijalom, (2) mehanizam za prijenos znanja, posebice po pitanju menadžerskih praksi, (3) te mehanizam umrežavanja, pomažući kako domaćim poduzećima da se internacionaliziraju, tako i inozemnim, u njihovoj potrazi za ulaskom na tržišta ekonomija u razvoju te identificiranju zdravih investicijskih prilika. Tek kad svi institucionalni okviri postanu pogodni za provođenje operacija i praksi inozemnog ulagača rizičnog kapitala, možemo očekivati vrstu investicija koju smo navikli vidjeti u SAD-u: investicije koje će podržavati “pravi” tip poduzetništva i inicirati poduzetničku kulturu koja predstavlja temelj za razvoj svake ekonomije.In the United States, venture capitalists (VCs) played an important role in supporting innovative companies and establishing emerging industries. Consequently, much of the literature on VCs is characterized by a Western bias. However, faced with crowding markets in the home territory, Western VCs have joined the internationalization wave and became increasingly interested in transitional economies. This paper examines the specificities and consequent challenges of developing economies for incoming foreign venture capitalists (FVCs) through discussion of (1) number, type and stage of opportunities for investments, (2) possibilities of exiting options from the investment, and (3) the state of the legal framework pertaining to intellectual property rights, overall transparency, and government policies in place. Upon examining the challenges, this paper concludes with the resulting differences in the role FVCs play in developing economies by suggesting that the role of FVC will first serve as a (1) selecting mechanism identifying high potential companies, (2) knowledge transfer mechanism, especially in management related issues, (3) networking mechanism, helping both host countries’ companies to internationalize and developed firms to tap into developing markets. Only once all the institutional frameworks become conducive to facilitating venture capitalist’s operations as seen in the U.S. for example, can we expect the practice of venture investing to encourage the “proper” type of entrepreneurship, and initiate the “start up” culture we typically envision when talking about the role of VC investment in the Western context

The interplay of need and opportunity in venture capital investment syndication

This study examines the syndication of investments novel to a VC firm as a function of the firm's need and opportunity to do so. We distinguish two types of uncertainty that firms face when considering novel investments: egocentric, pertaining to making the right decisions, and altercentric, pertaining to being evaluated as a potential partner on the investment. Whereas the former increases the firm's need to syndicate the investment, the latter reduces the firm's opportunity to do so, making it contingent upon the firm's status and reputation for attracting potential partners. Using data on first-round venture capital investments, we find that novel investments are more likely to be syndicated. Moreover, this relationship is stronger for firms with higher status and weaker for firms with higher reputation. These results highlight a relational aspect of uncertainty, inherent in a particular VC firm -- investment dyad, and suggest that status and reputation play different roles in aligning the need and opportunity to syndicate novel investments.Venture capital syndication Novel investments Status Reputation

The impact of early imprinting on the evolution of new venture networks

Given the argued importance of networks to new ventures, this paper is intended to fill a noted gap in the literature pertaining to the factors that influence the evolution of new ventures' alliance networks. Drawing on the imprinting literature, we propose that one has to look beyond the first partner per se, and instead focus on the extant relationships the initial partner has with other firms. More specifically, we argue and find that the network size and centrality of a new venture's initial alliance partner influence the subsequent size of the new venture's network.Networks New ventures Imprinting Panel Data

Mirror, mirror — A gendered lens on female entrepreneurs’ facial attractiveness in reward-based crowdfunding

Scholars investigating women's attractiveness have documented its disadvantages (the “beauty is beastly” effect), especially in male-typed domains, including entrepreneurship. However, reward-based crowdfunding research demonstrates that these platforms reverse gender biases typically found in traditional entrepreneurial finance. Thus, in reward-based crowdfunding, the adverse effect of women's attractiveness needs to be re-examined. In a sample of 7447 Kickstarter projects, we find that facial attractiveness increases funding success for women more than for men and that sex differences in attractiveness effects are greater in male-typed categories like technology. A post-hoc reveals a surprising attractiveness penalty for men in the technology sector and offers insights for future research