Work

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

Year: 2021

Type: article

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.

Source: Research Policy

DOI: 10.1016/j.respol.2021.104216

Authors: Yu Liu, Markku Maula

Institutions: Erasmus University Rotterdam, Aalto University

Language: English

Topic: Private Equity and Venture Capital

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,760