International Journal of Entrepreneurial Venturing (13 papers in press)
Better safe than sorry? The effect of trust on venture capitalists
by Carolin Helmreich
Abstract: This study investigates the impact of trust among nations on the formation of multinational venture capital syndicates. The data set is based on ThomsonONE and comprises 859 realised triads among lead venture capitalists, their syndicate partners, and portfolio firms. We find that bilateral trust has a significant positive impact on the probability of cooperation in a syndicate. The magnitude of this relationship depends on the status of venture capital markets. The relevance of bilateral trust to the probability of cooperation increases for investments in large venture capital markets with high deal numbers. In line with previous findings on venture capitalists' constricted scrutiny in boom phases, we find that trust becomes less relevant for cooperation during upswings of deal activity in the target market. Consistent with research that finds access to capital as one major reason for syndication, recent capital abundance in the syndicate partner's market reduces the impact of bilateral trust on the probability of cooperation.
Keywords: trust; venture capital; syndication; inter-firm alliances; relationship formation; partner selection; internationalisation; venture capital markets.
Environmental orientation among nascent and established entrepreneurs: An empirical analysis of differences and their causes
by Jacob Hörisch, Jana Kollat, Steven A. Brieger
Abstract: This paper investigates differences between nascent and established
entrepreneurs with regard to their ventures environmental orientation. Based
on quantitative data of more than 10,000 entrepreneurs, analyses of variance
(ANOVA) are conducted. The results show that the average environmental
orientation is significantly higher among nascent than among established
entrepreneurs. Variables are identified which influence the magnitude of these
differences, as they exert different effects on environmental orientation among
nascent and established entrepreneurs, such as household income or media
reports. Based on the findings, implications for policymakers, entrepreneurs as
well as for entrepreneurship education are drawn to use the potential of nascent
environmental entrepreneurs more comprehensively. For instance, teaching
institutions need to give realistic impressions of the challenges and potentials of
environmental entrepreneurship. Similarly, environmental entrepreneurs should
think about the specific challenges connected with environmentally-oriented
ventures, such as potential trade-offs between environmental and economic
objectives, at early stages of their entrepreneurial activity.This paper investigates differences between nascent and established entrepreneurs with regard to their ventures
Keywords: Environmental entrepreneurship; environmental orientation; Global Entrepreneurship Monitor; nascent entrepreneurship; established entrepreneurship; trade-offs; entrepreneur; sustainability; firm-age.
How does context influence entrepreneurship education outcomes? Empirical evidence from Bangladesh and Germany
by Petra Dickel, Linda Kleemann, Tarun Kanti Bose
Abstract: This study uses quasi-experimental data from 245 students in Bangladesh and Germany to explore the effect of entrepreneurship education on entrepreneurial attitudes (perceived desirability and perceived feasibility) and entrepreneurial intentions. The study specifically focuses on how context factors influence entrepreneurship education outcomes. Difference-in-differences analysis with propensity score matching is used to control for selection bias. The results show that the perceived entrepreneurship environment significantly affects the impact of entrepreneurship education and that the strength and direction of effects differ between the two countries. The implications of these results for entrepreneurship research, educators and policy makers are discussed accordingly.
Keywords: entrepreneurship education; contingency approach; quasi-experimental design; self-selection bias.
Which factors determine the gender gap in the entrepreneurial action? Evidence from Mexico
by José Manuel Saiz-Álvarez, Lucía Rodríguez-Aceves
Abstract: The empirical evidence about how the gender gap influences on the entrepreneurial intention and its effects on the entrepreneurial action are still limited. The objective of this paper is to analyse the main factors to explain the entrepreneurial gender gap in Mexico related to entrepreneurial intention and entrepreneurial action and moderated by income, education, and marital status. Our findings show that, first, although women have a high entrepreneurial intention in Mexico, they are reluctant to create firms due to a high perceived behavioural control, so their entrepreneurship action is deficient. As a result, the Mexican labour market continues being very traditional with low rates of female participation Second, the entrepreneurial intention tends to decrease with income. Third, single men with completed graduate and/or postgraduate studies and high levels of income are more prone for entrepreneurship in Mexico.
Keywords: gender gap; entrepreneurial action; entrepreneurial intention; GEM; Mexico; women entrepreneurship; education; marital status; income; perceived behavioural control.
Understanding the financial decision-making of entrepreneurial firms: A conceptual framework of resource logics and effectuation
by Christopher Weigand
Abstract: This study investigates the financial resource logic that entrepreneurs apply in the early stages of firm development by using effectuation as a theoretical lens. Prior research has shown that entrepreneurs' financial decisions are not always rational and deviate from economic-rational predictions in several cases, thereby calling for a behavioural-oriented perspective. The present study proposes an effectual financial resource logic as a behavioural economic approach as opposed to a causal financial resource logic as a conventional economic approach. The theoretical dichotomy provides a more nuanced understanding of entrepreneurs' financial reasoning beyond what is known from traditional finance theories, thus helping to align entrepreneurial practice and theory. This study introduces a conceptual framework that departs from the narrow economic view on financial reasoning, offering an alternative rationale for an inverse financial preference order. Finally, it generates two key propositions for future research and provides a financial decision-making aid for entrepreneurs.
Keywords: entrepreneurial finance; financial decision-making; new venture financing; financial resource logic; start-up financing; capital structure; pecking-order hypothesis; effectuation; entrepreneurship.
RADICALLY RETHINKING THE WAY CROWDFUNDING WORKS: THE CASE OF JUMPSTARTFUND AND THE HYPERLOOP
by Nikolaus Lipusch, Dominik Dellermann, Ulrich Bretschneider, Philipp Ebel, Jan Marco Leimeister
Abstract: In this research, we explore the unique case of JumpStartFund, a new crowdfunding platform that is used to develop the Hyperloop project. To this end, we employ an in-depth single case study to examine the participation architecture of the platform as well as the Hyperloop campaign content, based on which we derive a new crowdfunding model. The derived crowdfunding model differs from existing crowdfunding models in that it allows entrepreneurs to develop their business with the crowdmore actively. Our research has important implications for research and practice. First, we introduce a new crowdfunding model that expands the boundaries of existent models. Second, we explain how our model helps to more efficiently leverage the potential inherent in the crowd thereby redefining entrepreneurial success within crowdfunding. Third, we discuss how our findings contribute to existent research within the context of crowdsourcing.
Keywords: crowdfunding; case study; crowdfunding models; co-creation.
Specialization and Syndication as Risk Management Strategies for Venture Capital Firms in India
by Kshitija Joshi
Abstract: This paper presents an analysis of syndication and domain specialisation strategies pursued by the venture capital (VC) firms in India. Using the theoretical lens of the resource-based view, we explore how three main resource-related attributes: resource structure of the VC firms, resource requirements of the investee ventures and the ease of access to resources, drive the intensities of syndication and specialisation for the VC firms under study. We use the K-means cluster analysis technique, to analyse and profile four distinct VC firm segments: a) low syndication and low specialisation; b) high syndication and low specialisation; c) low syndication and high specialisation; d) high syndication and high specialisation. Our study contributes to the extant literature on VC investment strategies, top management teams and fills an important gap on the literature pertaining to VC firms in India.
Keywords: Venture Capital; Syndication; Specialization; India; Social Capital; Human Capital; Top Management Teams.
Bound for Glory or Cursed for Life? Exploring the Impact of Initial Resources on the Venture Emergence of New Technology-based Firms
by Ferran Giones, Francesc Miralles
Abstract: The value of existent firm's resources in uncertain and dynamic contexts is unclear. It is difficult to determine whether starting a new firm with a strong resource position will give an advantage in technology-intense contexts. We propose a revision of the role of resources in new tech-based ventures. We adopt a mixed-method approach. We use the cases of 21 new technology firms to build propositions on what factors (resources) play a role in new venture emergence. We then test to what extent those resources make an effect on the new venture emergence using a longitudinal dataset of 400 new technology-based firms. The results show that not all resources matter equally in the early-stages of a new technology-based firm. We identify that specific combinations of entrepreneurial experience and industry knowledge has a positive impact, while other resources such as technology assets, surprisingly, do not generate a clear impact.
Keywords: Technology Entrepreneurship; Venture Emergence; Technology Resources; Panel Data Set.
Dont throw in the towel too early! How agency conflicts affect the survival of Corporate Venture Capital units
by Daniel Fischer, Deniz Philipp Kruse, Hannes Leonardy, Christiana Weber
Abstract: We empirically investigate the largely unexplored relationship between corporate top management teams (TMT) and CVC unit managers. Doing so, we provide new insights into the interplay between TMT decisions and CVC managers' behaviour and how agency conflicts between them influence the survival of CVC units. Using a proprietary dataset of 64 CVC units we apply fsQCA in order to identify the interrelatedness, causal asymmetry and equifinality of agency-related conditions leading to survival. We relativise former literature by demonstrating that financial incentivisation of CVC managers need to be complemented by additional factors to impact the survival of CVC units. Further, we conclude that the decision-making autonomy of CVC managers seem to work as a form of non-financial incentive. Finally, we demonstrate that the configuration of providing strategic support, investing with high strategic proximity, and non-autonomously acting CVC managers is related to non-survival of the CVC unit.
Keywords: Corporate Venture Capital; CVC; Survival; Agency Theory; Configuration; Qualitative Comparative Analysis; QCA.
The accounting performance of listed family firms vs. non-family firms: a systematic review of empirical studies
by Noora Heino, Pasi Tuominen, Terhi Tuominen
Abstract: During the past couple of decades, scholars have identified a group of exchange-listed firms that seem to differ from others when it comes to performance: dominantly family-owned firms. However, the factors explaining performance differentials between family-dominated and other listed firms are still quite unclear. In this study, we conduct a systematic review of the empirical research on the accounting performance of listed family firms vs. non-family firms in order to map existing knowledge on the subject. Our review shows that many of the explanations given to performance differentials are assumptions, hypotheses and speculation, while in-depth understanding is lacking mainly due to methodological deficiencies. With this study, we provide new research gaps and avenues for further research in order to encourage more discussion on the topic.
Keywords: listed firm; public company; exhcange-listed company; listed company; firm performance; accounting performance; family firm; family business; ownership; management; systematic review.
Acquisitions by family businesses in continental Europe and their differences compared to private equity investors
by Philipp Schüler, Mark Mietzner, Dirk Schiereck
Abstract: This study explores whether family business investors and private equity investors in continental Europe significantly differ from their investment approach and performance. Therefore, we analyse 126 acquisitions of listed Continental European firms by family business investors or private equity firms from the years 2002 to 2012. Although most of the performance differences between both investor groups are not statistically significant, the results fit with the existing evidence on shareholder activism of institutional investors like private equity funds and corporate raiders. However, there are some significant differences with respect to target firm characteristics. Consequently, we suggest to increasingly consider family business investors in the research on shareholder activism in Continental Europe.
Keywords: minority stake acquisition; shareholder activism; family business; private equity; PE; corporate governance; agency conflicts; Europe.
Managing corporate-startup relationships: what matters for entrepreneurs?
by Franz Simon, Rainer Harms, Holger Schiele
Abstract: Startups have become an important part of corporations' external technology sourcing portfolio. Nonetheless, startups may be reluctant to enter in a relationship with a corporation. Prior research on corporate-startup relationships has primarily focused on the benefits for corporations and neglected the perspective of startups. In a multiple case study, we analyse the collaborations of 12 startups to 30 different corporations to address this gap. The findings show that complementary assets, risks as well as relational characteristics, influence the willingness of startups to enter such collaborations. We deduct nine propositions concerning, e.g., reputation and market access, misappropriation and the commitment of corporations. Further, our analysis highlights differences and similarities according to the maturity of startups. The study contributes to external technology sourcing literature and allows corporate managers to better understand the perspective of entrepreneurs in terms of engaging in strategic partnerships.
Keywords: external technology sourcing; corporate entrepreneurship; startups; corporations; corporate-startup relationships; asymmetric partnerships.
Entrepreneurial orientation at university: a necessity?
by Sawsen Sidrat
Abstract: In this paper, we shed light on the entrepreneurial university in Tunisia. We carried out a quantitative study on 140 Tunisian university officials in order to explore and identify the factors enabling the Tunisian university to become entrepreneurial. Indeed, the practical study has led us to consider the entrepreneurial university as a step towards the evolution of the university. This does not mean that the university will abandon its traditional missions (teaching and research) but it will assume a new mission (entrepreneurship). Our results show that the entrepreneurial orientation at university (innovation, proactivity, autonomy, risk- taking, competitiveness and interdisciplinarity) has a positive impact on the creation and development of an entrepreneurial university. In addition, the hypothetical-inductive approach allowed us to superimpose the theoretical propositions resulting from the literature with the main results of the survey. This has allowed us to refine and enrich the conceptual model by adding a new variable such as interdisciplinarity. The proposed conceptual model can serve as a reference for further research aiming to study the entrepreneurial university.
Keywords: innovation; proactivity; autonomy; risk taking; competitiveness; interdisciplinarity.