The Influence of Experiential, Inherited and External Knowledge on the Internationalization of Venture Capital Firms

International Business Review, 21 (5), 929-940 (2012). DOI: 10.1016/j.ibusrev.2011.11.001

12 Pages Posted: 30 Mar 2016

See all articles by Sofie De Prijcker

Sofie De Prijcker

Ghent University

Sophie Manigart

Vlerick Business School; Ghent University

Mike Wright

Nottingham University Business School

Wouter De Maeseneire

Vlerick Business School; Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Date Written: March 30, 2012

Abstract

This paper examines the effect of different types of international knowledge accumulation on the internationalization of venture capital firms, as a particular type of professional service firms. We distinguish between experiential knowledge acquired through previous activities, inherited knowledge through the management team and external knowledge through network partners. Hypotheses are developed for both the likelihood and the number of cross-border investments. The hand collected dataset comprises a combination of survey and archival data on a unique sample of 110 venture capital firms from five different European countries. Analyses indicate a positive effect of experiential and inherited knowledge on internationalization, but external knowledge has limited impact. Intense international contacts even decrease international activities. Together, these results highlight the importance of experiential and inherited knowledge to overcome information asymmetries inherent in the internationalization of professional service firms, and of venture capital firms in particular.

Keywords: experiential knowledge; external knowledge; human capital; inherited knowledge; venture capital

Suggested Citation

De Prijcker, Sofie and Manigart, Sophie and Wright, Mike and De Maeseneire, Wouter, The Influence of Experiential, Inherited and External Knowledge on the Internationalization of Venture Capital Firms (March 30, 2012). International Business Review, 21 (5), 929-940 (2012). DOI: 10.1016/j.ibusrev.2011.11.001. Available at SSRN: https://ssrn.com/abstract=2756538

Sofie De Prijcker

Ghent University ( email )

Kuiperskaai 55E
Ghent, 9000
Belgium

Sophie Manigart (Contact Author)

Vlerick Business School ( email )

Reep 1
Ghent, BE-9000
Belgium

Ghent University ( email )

Sint-Pietersplein 7
Gent, 9000
Belgium

Mike Wright

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom
+44 115 951 5257 (Phone)
+44 115 951 5204 (Fax)

Wouter De Maeseneire

Vlerick Business School ( email )

Reep 1
Ghent
BE-9000 Ghent
Belgium

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

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