Venturing into the unknown with strangers: Substitutes of relational embeddedness in cross-border partner selection in venture capital syndicates
File(s)JBV meuleman et al.docx (231.39 KB)
Accepted version
Author(s)
Meuleman, M
Jaaskelainen, M
Maula, MVJ
Wright, M
Type
Journal Article
Abstract
Syndicating with prior partners through relationally embedded ties may be widespread, but not always optimal when investing across borders especially if few prior partners operate in the focal market. However, the substitutes of relational embeddedness for trust creation in cross-border partner selection are poorly understood. We develop and test a model of how relational embeddedness interacts with structural embeddedness and legal and normative institutions and how relational embeddedness and these three substitutes jointly affect cross-border partner selection in venture capital syndicates. We test the hypotheses in the context of cross-border venture capital syndication in 12 European countries. Our findings based on a case-control analysis suggest that although relational embeddedness is a key driver of future partnering, structural embeddedness and trust generating institutions such as high quality legal frameworks and industry associations facilitate cross-border partnering and diminish the need to rely on relationally embedded ties in cross-border partner selection.
Date Issued
2017-01-18
Date Acceptance
2017-01-04
Citation
Journal of Business Venturing, 2017, 32 (2), pp.131-144
ISSN
0883-9026
Publisher
Elsevier
Start Page
131
End Page
144
Journal / Book Title
Journal of Business Venturing
Volume
32
Issue
2
Copyright Statement
© 2017 Elsevier Ltd. All rights reserved. This manuscript is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
Identifier
http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000398748900001&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=1ba7043ffcc86c417c072aa74d649202
Subjects
Social Sciences
Business
Business & Economics
Cross-border venture capital
Syndication
Embeddedness
Institutions
Partner selection
INTERNATIONAL-BUSINESS
STRATEGIC ALLIANCES
EMERGING ECONOMIES
LONGITUDINAL ANALYSIS
MARKET UNCERTAINTY
SOCIAL-STRUCTURE
TRUST
PERFORMANCE
ORGANIZATIONS
NETWORKS
Publication Status
Published