Contextual status effects: The performance effects of host-country network status and regulatory institutions in cross-border venture capital

Loading...
Thumbnail Image
Journal Title
Journal ISSN
Volume Title
A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
Date
2021-06
Major/Subject
Mcode
Degree programme
Language
en
Pages
Series
Research Policy, Volume 50, issue 5
Abstract
Network status is generally considered to be a valuable firm asset; however, its effects are not well understood in the context of cross-border VC investments, as foreign VC firms can have different statuses in their home and host countries, and prior research has considered only the effects of home-country network status. Theorizing the importance of a foreign VC firm's network status in the host country for cross-border VC investments, we hypothesize a positive performance effect for network status in the host country. Furthermore, we theorize that the performance effect of a VC firm's network status in the host country is stronger in countries with weaker host-country regulatory institutions. We test these hypotheses using a global sample of cross-border VC investments and find support for our arguments.
Description
Funding Information: We would also like to acknowledge valuable comments on previous versions of the paper from Douglas Cumming, Gokhan Ertug, Isin Guler, Sophie Manigart, Miguel Meuleman, Mike Peng, Brian Pinkham, and Ilan Vertinsky, as well as from the participants of the Academy of Management Meetings in Atlanta and the SMS Special Conference in Hong Kong, and the seminar participants at Aalto University, Copenhagen Business School, Erasmus University Rotterdam, and Tilburg University. Publisher Copyright: © 2021 The Authors Copyright: Copyright 2021 Elsevier B.V., All rights reserved.
Keywords
Cross-border venture capital, Institutions, Networks, Status multiplicity
Other note
Citation
Liu , Y & Maula , M 2021 , ' Contextual status effects: The performance effects of host-country network status and regulatory institutions in cross-border venture capital ' , Research Policy , vol. 50 , no. 5 , 104216 . https://doi.org/10.1016/j.respol.2021.104216