Resource access needs and capabilities as mediators of the relationship between VC firm size and syndication
AbstractDrawing from the resource-based view and transaction costs economics, we develop a theoretical framework to explain why small and large firms face different levels of resource access needs and resource access capabilities, which mediate the relationship between firm size and hybrid governance. Employing a sample of 317 venture capital firms, drawn across 6 European countries, we empirically assess our framework in the context of venture capital syndication. We estimate a path model using structural equation modeling and find, consistent with our theoretical framework, mediating effects of different types of resource access needs and resource access capabilities between VC firm size and syndication frequency. These findings advance the small business literature by highlighting the trade-offs that size imposes on firms that seek to manage their access to external resources through hybrid governance strategies.
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Bibliographic InfoPaper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 10/648.
Length: 41 pages
Date of creation: Mar 2010
Date of revision:
venture capital; firm size; investment syndication; resource access capabilities; resource access needs; transaction cost economics; hybrid governance;
Other versions of this item:
- Ernst Verwaal & Hans Bruining & Mike Wright & Sophie Manigart & Andy Lockett, 2010. "Resources access needs and capabilities as mediators of the relationship between VC firm size and syndication," Small Business Economics, Springer, vol. 34(3), pages 277-291, April.
- G2 - Financial Economics - - Financial Institutions and Services
- G3 - Financial Economics - - Corporate Finance and Governance
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-11 (All new papers)
- NEP-CFN-2010-06-11 (Corporate Finance)
- NEP-ENT-2010-06-11 (Entrepreneurship)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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