The Impact of Investment Networks on Venture Capital Firm Performance: A Contingency Framework

18 Pages Posted: 21 Jan 2017

See all articles by Cristiano Bellavitis

Cristiano Bellavitis

Auckland Business School, Management and International Business

Igor Filatotchev

City University London - Sir John Cass Business School

Vangelis Souitaris

City University London - Faculty of Management

Date Written: January 2017

Abstract

Venture capital (VC) syndicates involve repeated transactions among partners and therefore possess network‐like characteristics. Although networks provide access to important externalities, extant literature has not studied the effects of the focal firm's resource needs on performance benefits arising from different network structures. We investigate the impact of two proxies for firm‐level resources, namely maturity and status, on the relationship between network cohesion and VC performance. We find that mature and high status VCs benefit less from network cohesion. We also show that maturity and status simultaneously determine the performance effects of network cohesion.

Suggested Citation

Bellavitis, Cristiano and Filatotchev, Igor and Souitaris, Vangelis, The Impact of Investment Networks on Venture Capital Firm Performance: A Contingency Framework (January 2017). British Journal of Management, Vol. 28, Issue 1, pp. 102-119, 2017. Available at SSRN: https://ssrn.com/abstract=2902949 or http://dx.doi.org/10.1111/1467-8551.12162

Cristiano Bellavitis (Contact Author)

Auckland Business School, Management and International Business ( email )

12 grafton rd
Auckland
Auckland, Auckland 0000
New Zealand

Igor Filatotchev

City University London - Sir John Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom

Vangelis Souitaris

City University London - Faculty of Management ( email )

London
United Kingdom
+44 (0) 20 7040 5131 (Phone)
+44 (0) 20 7040 8328 (Fax)

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