IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

A cross-country investigation of micro-angel investment activity: The roles of new business opportunities and institutions

  • De Clercq, Dirk
  • Meuleman, Miguel
  • Wright, Mike

Building on international business literature and institutional theory, we examine the joint roles of new business opportunity availability and key formal and informal institutions in a country for explaining the incidence of micro-angel investment activity. Micro-angel investments should increase to the extent that countries demonstrate (1) greater availability of new business opportunities, (2) more protective legal systems, and (3) stronger embeddedness of members in interrelationships. More protective legal systems and stronger embeddedness also may play moderating roles, such that they amplify the relationship between the availability of new business opportunities and the incidence of micro-angel investment activity. Finally, legal protection and embeddedness can substitute for each other, such that the effect of one becomes suppressed at higher levels of the other. Data drawn from different cross-national data sources support these hypotheses. This study is among the first to explain cross-country differences in micro-angel investment activity.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sciencedirect.com/science/article/pii/S0969593111000114
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Elsevier in its journal International Business Review.

Volume (Year): 21 (2012)
Issue (Month): 2 ()
Pages: 117-129

as
in new window

Handle: RePEc:eee:iburev:v:21:y:2012:i:2:p:117-129
Contact details of provider: Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description

Order Information: Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic
Web: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic

References listed on IDEAS
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.:

as in new window
  1. Mourad Dakhli & Dirk De Clercq, 2004. "Human capital, social capital, and innovation: a multi-country study," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(2), pages 107-128, March.
  2. Miguel Meuleman & Andy Lockett & Sophie Manigart & Mike Wright, 2010. "Partner Selection Decisions in Interfirm Collaborations: The Paradox of Relational Embeddedness," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 995-1019, 09.
  3. Sobel, Russell S., 2008. "Testing Baumol: Institutional quality and the productivity of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 23(6), pages 641-655, November.
  4. William L. Megginson, 2004. "Toward A Global Model Of Venture Capital?," Journal of Applied Corporate Finance, Morgan Stanley, vol. 16(1), pages 89-107.
  5. Daniel Berkowitz & Karina Pistor & Jean-Francois Richard, 2001. "Economic Development, Legality, and the Transplant Effect," William Davidson Institute Working Papers Series 410, William Davidson Institute at the University of Michigan.
  6. Jeng, Leslie A. & Wells, Philippe C., 2000. "The determinants of venture capital funding: evidence across countries," Journal of Corporate Finance, Elsevier, vol. 6(3), pages 241-289, September.
  7. William Bygrave & Michael Hay & Emily Ng & Paul Reynolds, 2003. "Executive forum: A study of informal investing in 29 nations composing the Global Entrepreneurship Monitor," Venture Capital, Taylor & Francis Journals, vol. 5(2), pages 101-116, April.
  8. Ted Baker & Eric Gedajlovic & Michael Lubatkin, 2005. "A framework for comparing entrepreneurship processes across nations," Journal of International Business Studies, Palgrave Macmillan, vol. 36(5), pages 492-504, September.
  9. Isabel Grilo & Roy Thurik, 2008. "Determinants of entrepreneurial engagement levels in Europe and the US," Industrial and Corporate Change, Oxford University Press, vol. 17(6), pages 1113-1145, December.
  10. Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 893-921, October.
  11. N. Berger, Allen & F. Udell, Gregory, 1998. "The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle," Journal of Banking & Finance, Elsevier, vol. 22(6-8), pages 613-673, August.
  12. Garbacz, Christopher & Thompson, Herbert G, 2002. "Estimating Telephone Demand with State Decennial Census Data from 1970-1990," Journal of Regulatory Economics, Springer, vol. 21(3), pages 317-29, May.
  13. Lockett, Andy & Murray, Gordon & Wright, Mike, 2002. "Do UK venture capitalists still have a bias against investment in new technology firms," Research Policy, Elsevier, vol. 31(6), pages 1009-1030, August.
  14. Desislava Dikova & Padma Rao Sahib & Arjen van Witteloostuijn, 2010. "Cross-border acquisition abandonment and completion: The effect of institutional differences and organizational learning in the international business service industry, 1981–2001," Journal of International Business Studies, Palgrave Macmillan, vol. 41(2), pages 223-245, February.
  15. Li, Li, 2005. "The effects of trust and shared vision on inward knowledge transfer in subsidiaries' intra- and inter-organizational relationships," International Business Review, Elsevier, vol. 14(1), pages 77-95, February.
  16. Szyliowicz, Dara & Galvin, Tiffany, 2010. "Applying broader strokes: Extending institutional perspectives and agendas for international entrepreneurship research," International Business Review, Elsevier, vol. 19(4), pages 317-332, August.
  17. Harry P Bowen & Dirk De Clercq, 2008. "Institutional context and the allocation of entrepreneurial effort," Journal of International Business Studies, Palgrave Macmillan, vol. 39(4), pages 747-767, June.
  18. Baumol William J. & Litan Robert E & Schramm Carl J, 2007. "Sustaining Entrepreneurial Capitalism," Capitalism and Society, De Gruyter, vol. 2(2), pages 1-38, November.
  19. Simon Johnson & John McMillan & Christopher Woodruff, 2002. "Property Rights and Finance," NBER Working Papers 8852, National Bureau of Economic Research, Inc.
  20. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
  21. Isabel Grilo & Jesus-Maria Irigoyen, 2006. "Entrepreneurship in the EU: To Wish and not to be," Small Business Economics, Springer, vol. 26(4), pages 305-318, 05.
  22. László Szerb & Gábor Rappai & Zsolt Makra & Siri Terjesen, 2007. "Informal Investment in Transition Economies: Individual Characteristics and Clusters," Small Business Economics, Springer, vol. 28(2), pages 257-271, March.
  23. Colin M. Mason & Richard T. Harrison, 2008. "Measuring business angel investment activity in the United Kingdom: a review of potential data sources," Venture Capital, Taylor & Francis Journals, vol. 10(4), pages 309-330, July.
  24. Shaomin Li & Kiran Karande & Dongsheng Zhou, 2009. "The Effect of the Governance Environment on Marketing Channel Behaviors: The Diamond Industries in the U.S., China, and Hong Kong," Journal of Business Ethics, Springer, vol. 88(3), pages 453-471, October.
  25. Jay Pil Choi & Marcel Thum, 2002. "Corruption and the Shadow Economy," CESifo Working Paper Series 633, CESifo Group Munich.
  26. Gordon Redding, 2005. "The thick description and comparison of societal systems of capitalism," Journal of International Business Studies, Palgrave Macmillan, vol. 36(2), pages 123-155, March.
  27. André van Stel & Roy Thurik & David Storey, 2006. "The effect of business regulations on nascent and young business entrepreneurship," Scales Research Reports H200609, EIM Business and Policy Research.
  28. David M Brock & Oded Shenkar & Amir Shoham & Ilene C Siscovick, 2008. "National culture and expatriate deployment," Journal of International Business Studies, Palgrave Macmillan, vol. 39(8), pages 1293-1309, December.
  29. Jonsson, Sara & Lindbergh, Jessica, 2010. "The impact of institutional impediments and information and knowledge exchange on SMEs' investments in international business relationships," International Business Review, Elsevier, vol. 19(6), pages 548-561, December.
  30. Colm O'Gorman & Siri Terjesen, 2005. "Financing the Celtic Tigress: Venture financing and informal investment in Ireland," Venture Capital, Taylor & Francis Journals, vol. 8(1), pages 69-88, September.
  31. Huang, Ying & Sternquist, Brenda, 2007. "Retailers' foreign market entry decisions: An institutional perspective," International Business Review, Elsevier, vol. 16(5), pages 613-629, October.
  32. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, March.
  33. De Clercq, Dirk & Danis, Wade M. & Dakhli, Mourad, 2010. "The moderating effect of institutional context on the relationship between associational activity and new business activity in emerging economies," International Business Review, Elsevier, vol. 19(1), pages 85-101, February.
  34. Markus M. M�kel� & Markku V. J. Maula, 2008. "Attracting cross-border venture capital: the role of a local investor," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 20(3), pages 237-257, May.
  35. Andrei Shleifer & Robert W. Vishny, 1995. "A Survey of Corporate Governance," Harvard Institute of Economic Research Working Papers 1741, Harvard - Institute of Economic Research.
  36. Claessens, Stijn & Laeven, Luc, 2002. "Financial development, property rights, and growth," Policy Research Working Paper Series 2924, The World Bank.
  37. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
  38. John Armour & Douglas Cumming, 2006. "The legislative road to Silicon Valley," Oxford Economic Papers, Oxford University Press, vol. 58(4), pages 596-635, October.
  39. Paul Reynolds & Niels Bosma & Erkko Autio & Steve Hunt & Natalie De Bono & Isabel Servais & Paloma Lopez-Garcia & Nancy Chin, 2005. "Global Entrepreneurship Monitor: Data Collection Design and Implementation 1998–2003," Small Business Economics, Springer, vol. 24(3), pages 205-231, 02.
  40. De Clercq, Dirk & Sapienza, Harry J., 2006. "Effects of relational capital and commitment on venture capitalists' perception of portfolio company performance," Journal of Business Venturing, Elsevier, vol. 21(3), pages 326-347, May.
  41. Carla Millar & Chong-Ju Choi & Philip Cheng, 2009. "Co-Evolution: Law and Institutions in International Ethics Research," Journal of Business Ethics, Springer, vol. 87(4), pages 455-462, July.
  42. Bosworth, Derek & Yang, Deli, 2000. "Intellectual property law, technology flow and licensing opportunities in the People's Republic of China," International Business Review, Elsevier, vol. 9(4), pages 453-477, August.
  43. Cumming, Douglas & Schmidt, Daniel & Walz, Uwe, 2010. "Legality and venture capital governance around the world," Journal of Business Venturing, Elsevier, vol. 25(1), pages 54-72, January.
  44. Kwon, Seok-Woo & Arenius, Pia, 2010. "Nations of entrepreneurs: A social capital perspective," Journal of Business Venturing, Elsevier, vol. 25(3), pages 315-330, May.
  45. Marshall, Ronald Scott, 2003. "Building trust early: the influence of first and second order expectations on trust in international channels of distribution," International Business Review, Elsevier, vol. 12(4), pages 421-443, August.
  46. Markku Maula & Erkko Autio & Pia Arenius, 2005. "What Drives Micro-Angel Investments?," Small Business Economics, Springer, vol. 25(5), pages 459-475, December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:21:y:2012:i:2:p:117-129. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.