Working with Unfamiliar Partners: Relational Embeddedness and Partner Selection in Private Equity Syndicates

Babson College Entrepreneurship Research Conference (BCERC) 2006

Frontiers of Entrepreneurship Research 2006

13 Pages Posted: 10 Feb 2009 Last revised: 10 Mar 2009

See all articles by Miguel Meuleman

Miguel Meuleman

Vlerick Business School; University of Nottingham

Andy Lockett

Nottingham University Business School (NUBS)

Michael Wright

affiliation not provided to SSRN

Date Written: January 21, 2009

Abstract

While one stream of research in partner selection has emphasized stability in a firm's social network, another stream has emphasized the need to expand a firm's network. In order to reconcile these two perspectives, we explore transaction, partner and industry conditions that lead firms to work with unfamiliar partners. Using a unique hand-collected dataset, results from the formation of private equity investment syndicates demonstrate that firms are more likely to select unfamiliar partners for lower levels of primary and behavioral uncertainty and higher levels of competition. Our findings provide insights in conditions that lead firms to expand their social network.

Keywords: Entrepreneurship

JEL Classification: M13

Suggested Citation

Meuleman, Miguel and Lockett, Andy and Wright, Michael, Working with Unfamiliar Partners: Relational Embeddedness and Partner Selection in Private Equity Syndicates (January 21, 2009). Babson College Entrepreneurship Research Conference (BCERC) 2006; Frontiers of Entrepreneurship Research 2006. Available at SSRN: https://ssrn.com/abstract=1331033

Miguel Meuleman (Contact Author)

Vlerick Business School ( email )

Reep 1
Gent, 9000
Belgium
0032(0)92109770 (Phone)
0032(0)92109790 (Fax)

University of Nottingham

University Park
Nottingham, NG8 1BB
United Kingdom

Andy Lockett

Nottingham University Business School (NUBS) ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom

Michael Wright

affiliation not provided to SSRN ( email )

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