Independent venture capital, corporate venture capital, and the internationalisation intensity of technology-based portfolio firms

Joseph A. LiPuma1
1Boston University, Boston, USA

Tóm tắt

Firms that internationalise early in their lives share characteristics with those that receive venture capital. The relationship between receipt of venture capital and the international intensity of 1348 young technology firms is examined, including whether the source of capital, from independent venture capital firms, corporations or private sources, has an impact. The absence of venture capital is shown to be positively associated with increased internationalisation. While previous literature suggests differences in the value added of different sources of venture capital, the results indicate no such differences in their impact on international intensity.

Tài liệu tham khảo

Alderson, A. S., & Beckfield, J. (2004). Power and position in the world city system. American Journal of Sociology, 109, 811–851. Aldrich, H., & Fiol, C. M. (1994). Fools Rush In? The institutional context of industry creation. Academy of Management Review, 19, 645–670. Amit, R., Brander, J., & Zott, C. (1998). Why do venture capital firms exist? Theory and canadian evidence. Journal of Business Venturing, 13, 441–466. Anderson, S., Gabrielsson, J., & Wictor, I. (2004). International activities in small firms: Examining factors influencing the internationalization and export growth of small firms. Canadian Journal of Administrative Sciences, 21, 22–34. Autio, E., Sapienza, H., & Almeida, J. G. (2000). Effects of age at entry, knowledge intensity, and imitability on international growth. Academy of Management Journal, 43, 909–924. Block, Z., & Ornati, O. A. (1987). Compensating corporate venture managers. Journal of Business Venturing, 2, 41–51. Bloodgood, J. M., Sapienza, H. J., & Almeida, J. G. (1996). The internationalization of new high-potential U.S. ventures: Antecedents and outcomes. Entrepreneurship Theory & Practice, 61–76. Bonaccorsi, A. (1992). On the relationship between firm size and export intensity. Journal of International Business Studies, 4, 605–635. Brush, C. G. (1995). International entrepreneurship: The effect of firm age on motives for internationalization. New York: Garland. Burgel, O., & Murray, G. C. (1998). The international activities of british start-up companies in high-technology industries: Differences between internationalisers and non-internationalisers. Babson Kauffman Entrepreneurship Research Conference: Babson College. Calof, J. L. (1993). The impact of size on internationalization. Journal of Small Business Management, 31(4), 60–69. Carpenter, M. A., Pollock, T. G., & Leary, M. M. (2003). Testing a model of reasoned risk-taking: Governance, the experience of principals and agents, and global strategy in high-technology IPO firms. Strategic Management Journal, 24, 803–820. Chesbrough, H. W. (2000). Designing corporate ventures in the shadow of private venture capital. California Management Review, 42(3), 31–49. Cohen, W., & Levinthal, D. (1990). Absorptive capacity: A New perspective on learning and innovation. Administrative Science Quarterly, 35, 128–152. Comment, R., & Jarrell, G. (1995). Corporate focus and stock returns. Journal of Financial Economics, 31, 67–87. Coviello, N. E., & McAuley, A. (1999). Internationalisation and the smaller firm: A review of contemporary empirical research. Management International Review, 39, 223–256. Coviello, N. E., & Munro, H. J. (1995). Growing the entrepreneurial firm: Networking for international market development. European Journal of Marketing, 29(7), 49ff. Davila, A., Foster, G., & Gupta, M. (2003). Venture capital financing and the growth of startup firms. Journal of Business Venturing, 18, 689–708. Dushnitsky, G., & Lenox, M. J. (2004). When does corporate venture capital investment create firm value? University of Pennsylvania and Duke University from http://www-management.wharton.upenn.edu/dushnitsky/documents/1.pdf. Evans, D. S., & Jovanovic, B. (1989). An Estimated Model of entrepreneurial choice under liquidity constraints. Journal of Political Economy, 97, 808–826. George, G., Wiklund, J., & Zahra, S. A. (2005). Ownership and the internationalization of small firms. Journal of Management, 31, 210–233. Gompers, P. A. (1995). Optimal investment, monitoring, and the staging of venture capital. Journal of Finance, 50, 1461–1490. Gompers, P., & Lerner, J. (2001). The venture capital revolution. Journal of Economic Perspectives, 15, 145–169. Gompers, P. A., & Lerner, J. (2002). The venture capital cycle. Cambridge: MIT Press. Granovetter, M. (1984). Small is bountiful: Labor markets and establishment size. American Sociological Review, 49, 323–334. Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17, 109–122. Gupta, A. K., & Sapienza, H. J. (1992). Determinants of venture capital firms’ preferences regarding the industry diversity and geographic scope of their investments. Journal of Business Venturing, 7, 347–362. Harveston, P. D., Kedia, B. L., & Davis, P. S. (2000). Internationalization of born global and gradual globalizing firms: The impact of the manager. Advances in Competitiveness Research, 8(1), 92–99. International Trade Administration, Small & Medium-Sized Exporting Companies (2003).: Statistical Overview. Office of Trade and Industry Information, International Trade Administration, U.S. Department of Commerce. Johanson, J., & Vahlne, J. (1977). The internationalization process of the firm: A model of knowledge development and increasing foreign commitments. Journal of International Business Studies, 8(1), 23–32. Knight, G., & Cavusgil, S. T. (1996). The born global firm: A challenge to traditional internationalization theory. Advances in international marketing, 8, 11–26, New York: JAI Press Knight, G. A., & Cavusgil, S. T. (2004). Innovation, organizational capabilities, and the born-global firm. Journal of International Business Studies, 35(2), 124–141. Knight, G. A., & Cavusgil, S. T. (2005). A taxonomy of born-global firms. Management International Review, 45(3), 15–35. Knight, G. A., & Liesch, P. W. (2002). Information internalisation in internationalising the firm. Journal of Business Research, 55(12), 981–995. Lockett, A., & Wright, M. (2001). The syndication of venture capital investments. Omega, 29, 375–390. Makela, M. M. (2004). Essays on cross-border venture capital: A grounded theory approach, doctoral dissertation. Helsinki University of Technology Institute of Strategy and International Business. Manigart, S., De Waele, K., Wright, M., Robbie, K., Desbrieres, P., Sapienza, H. J., & Beekman, A. (2000). Venture capitalists, investment appraisal and accounting information: A comparative study of the USA, UK, France, Belgium and Holland. European Financial Management, 6(3), 389–494. Manigart, S., De Waele, K., Wright, M., Robbie, K., Desbrieres, P., Sapienza, H. J., & Beekman, A. (2002). Determinants of required return in venture capital investments: A five-country study. Journal of Business Venturing, 17(4), 291–313. Maula, M., Autio, E., & Murray, G. (2003). Prerequisites for the creation of social capital and subsequent knowledge acquisition in corporate venture capital. Venture Capital, 5(2), 117–134. Maula, M., Autio, E., & Murray, G. (2005). Corporate venture capitalists and independent venture capitalists: What do they know, Who do they know, and should entrepreneurs care?. Venture Capital, 7(1), 3–21. Maula, M., & Murray, G. (2001). Complementary value-adding roles of corporate venture capital and independent venture capital investors. Helsinki: Helsinki University of Technology, Institute of Strategy and International Business. Maula, M., & Murray, G. (2002). Corporate venture capital and the creation of US public companies: The impact of sources of venture capital on the performance of portfolio companies. In M. A., Hitt, R. Amit, C. E. Lucier and R. D. Nixon (Eds.), Creating value: Winners in the new business environment, Oxford, UK: Blackwell. Mayer, C., Schoors, K., & Yafeh, Y. (2003). Sources of funds and investment activities of venture capital funds: Evidence from Germany, Israel, Japan, and the UK. SSRN Working Paper McDougall, P. P., & Oviatt, B. M. (2003). Some Fundamental Issues in International Entrepreneurship from http://www.usasbe.org/knowledge/whitepapers/mcdougall2003.pdf. McNally, K. (1995). Corporate venture capital: The financing of technology businesses. International Journal of Entrepreneurial Behaviour & Research, 1(3), 9–28. Oviatt, B., & McDougall, P. P. (1994). Towards a theory of international new ventures. Journal of International Business Studies, 25, 45–63. Penrose, E. (1959). Theory of the growth of the firm. New York: Oxford University Press. Preece, S. B., Miles, G., & Baetz, M. C. (1998). Explaining the international intensity and global diversity of early-stage technology-based firms. Journal of Business Venturing, 14, 259–281. Rauser, V. I. (2002). Value added of corporate venture capital: How do CVC units benefit from their organizational core? Doctoral dissertation, Bamberg, Germany: Otto Friedrich University. Reuber, A. R., &. Fischer, E. (1997). The influence of the management team’s international experience on the internationalization behaviors of SMEs. Journal of International Business Studies, Fourth Quarter, 807–825. Rosenstein, J. (1988). The board and strategy: Venture capital and high technology. Journal of Business Venturing, 3, 159–170. Rosenstein, J., Bruno, A. V. W., Bygrave, W. D., & Taylor, N. T. (1993). The CEO, venture capitalists, and the board. Journal of Business Venturing, 8, 99–113. Sapienza, H. (1992). When do venture capitalists add value? Journal of Business Venturing, 9, 9–27. Sapienza, H. J., Autio, E., & Zahra, S. A. (2003). The effects of early internationalization on young firms’ prospects for survival and growth. Academy of Management Proceedings: G1–G7. Sapienza, H. J., Manigart, S., & Vermeir, W. (1996). Venture capitalist governance and value added in four countries. Journal of Business Venturing, 11, 439–469. Sharma, P., & Chrisman, J. J. (1999). Toward a reconciliation of the definitional issues in the field of corporate entrepreneurship. Entrepreneurship Theory & Practice, 11–27. Shuman, J. C., & Seeger, J. A. (1986). The theory and practice of strategic management in smaller rapid growth firms. American Journal of Small Business, 11, 7–18. Simonin, B. L. (1999). Transfer of marketing know-how in international strategic alliances: An empirical investigation of the role and antecedents of knowledge ambiguity. Journal of International Business Studies, 30, 463–490. Singh, J. V., Tucker, D. J., & House, R. J. (1986). Organizational legitimacy and the liability of newness. Administrative Sciences Quarterly, 31, 171–193. Smith, G. (2001). How early stage entrepreneurs evaluate venture capitalists. Journal of Private Equity, 4(2), 33–45. Soh, P. H. (2003). The role of networking alliances in information acquisition and its implications for new product performance. Journal of Business Venturing, 18, 727–744. Sorenson, O., & Stuart, T. E. (2001). Syndication networks and the spatial distribution of venture capital investments. American Journal of Sociology, 106, 1546–1588. Stinchcombe, A. L. (1965). Social structure and organizations. In J. G March (Eds.), Handbook of organizations. Chicago: Rand-McNally. Stuart, T. E., Hoang, H., & Hybels, R. C. (1999). Interorganizational endorsements and the performance of entrepreneurial ventures. Administrative Science Quarterly, 44, 315–349. Sullivan, D. (1994). Measuring the degree of internationalization of a firm. Journal of International Business Studies, (Q2), 325–342. Uzzi, B. (2000). The Sources and consequences of embeddedness for the economic performance of organizations. American Sociological Review, 61, 674–698. Van Osnabrugge, M., & Robinson, R. J. (2001). The influence of a venture capitalist’s source of funds. Venture Capital, 3(1), 25–39. Westhead, P., Wright, M., & Ucbasaran, D. (2001). The internationalization of new and small firms: A resource-based view. Journal of Business Venturing, 16, 333–358. Wolff, J. A., & Pett, T. L. (2000). Internationalization of small firms: An examination of export competitive patterns, firm size, and export performance. Journal of Small Business Management, 34–47. Zaheer, S. (1995). Overcoming the liability of foreignness. Academy of Management Journal, 38, 341–363. Zahra, S. A., & Garvis, D. M. (2000). International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility. Journal of Business Venturing, 15, 469–492.