The Rise and Fall of South African Venture Capital: A Coproduction Perspective

40 Pages Posted: 21 Aug 2009

See all articles by David C. Lingelbach

David C. Lingelbach

Stevenson University; Johns Hopkins University

Gordon C. Murray

University of Exeter Business School

Evan Gilbert

Stellenbosch University

Date Written: June 2, 2009

Abstract

An exploratory longitudinal case study of the South African venture capital (VC) industry is used to evaluate two perspectives on the VC emergence process. The first views VC emergence as the resolution of the simultaneity problem. We propose a second perspective, which sees emergence as the product of a teleological process involving coproduction between private sector fund managers and public sector investors. We develop process data from four sources: Semi-structured interviews with current and past VC practitioners in South Africa, archival research at fund managers and newspapers, direct observation, and a review of relevant research. Our analysis shows the centrality of coproduction to the industry’s emergence. These results suggest an alternative to the simultaneity model for explaining VC industry emergence in weak institutional environments.

Keywords: Venture capital, emergence, coproduction, South Africa

Suggested Citation

Lingelbach, David C. and Murray, Gordon C. and Gilbert, Evan, The Rise and Fall of South African Venture Capital: A Coproduction Perspective (June 2, 2009). Available at SSRN: https://ssrn.com/abstract=1459175 or http://dx.doi.org/10.2139/ssrn.1459175

David C. Lingelbach (Contact Author)

Stevenson University ( email )

100 Campus Circle
Owings Mills, MD 21117
United States

Johns Hopkins University ( email )

720 Rutland Avenue
Baltimore, MD 21205-2196
United States

Gordon C. Murray

University of Exeter Business School ( email )

Streatham Court
Rennes Drive
Exeter EX4 4PU
United Kingdom
+44 777 522 0857 (Phone)

HOME PAGE: http://business-school.exeter.ac.uk/staff/profile.php?id=34

Evan Gilbert

Stellenbosch University ( email )

Private Bag X1
Stellenbosch, Western Cape 7602
South Africa

Register to save articles to
your library

Register

Paper statistics

Downloads
217
Abstract Views
1,212
rank
138,885
PlumX Metrics