IDEAS home Printed from https://ideas.repec.org/a/taf/veecee/v14y2012i1p43-59.html
   My bibliography  Save this article

Relational norms and entrepreneurs’ confidence in venture capitalists' cooperation: the mediating role of venture capitalists' strategic and managerial involvement

Author

Listed:
  • Ronit Yitshaki

Abstract

This study examines the relationships between relational norms and entrepreneurs' confidence in the cooperation of their venture capitalist (VC) investors. Based on quantitative data collected from 120 Israeli high tech entrepreneurs, thefindings indicate that relational norms between entrepreneurs and VCs (i.e., shared beliefs and perceived similarities) are positively associated with entrepreneurs' confidence in their VCs' cooperation. However, it was found that VCs' strategic involvement mediates the positive relationship between relational norms and entrepreneurs confidence in their VCs' cooperation, whereas VCs' managerial involvement mediates the negative relationship between relational norms and entrepreneurs' confidence in VCs' cooperation. These findings are supported by six interviews made with entrepreneurs. The findings extend the current literature by indicating that although relational norms serve as a prime criterion for selecting between investment opportunities by VCs, they cannot ensure relational continuity over time as entrepreneurs' confidence in their VCs' cooperation is mediated by VCs' involvement. The findings also suggest that entrepreneurs consider ‘the optimal balance' between relational norms and control as aligned with strategic rather managerial involvement.

Suggested Citation

  • Ronit Yitshaki, 2012. "Relational norms and entrepreneurs’ confidence in venture capitalists' cooperation: the mediating role of venture capitalists' strategic and managerial involvement," Venture Capital, Taylor & Francis Journals, vol. 14(1), pages 43-59, January.
    • Handle: RePEc:taf:veecee:v:14:y:2012:i:1:p:43-59
    DOI: 10.1080/13691066.2012.662839
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13691066.2012.662839
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13691066.2012.662839?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alqatawni, Tahsen, 2013. "The Relationship Conflict between Venture Capital and Entrepreneur," MPRA Paper 48005, University Library of Munich, Germany.
    2. Lingyu Hu & Jibao Gu & Jianlin Wu & Augustine A. Lado, 2018. "Regulatory focus, environmental turbulence, and entrepreneur improvisation," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 129-148, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:veecee:v:14:y:2012:i:1:p:43-59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TVEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.