Understanding global flows of venture capital: Human networks as the "carrier wave" of globalization

Journal of International Business Studies

Volumn 40, Issue 8, 2009, Pages 1241-1259

  Madhavan, Ravi ^a   Iriyama, Akie ^b  

^a UNIVERSITY OF PITTSBURGH   (United States)

^b 326F Jacobs Management Center   (United States)

Author keywords

Cross border capital flows; Globalization; Immigration; Networks; Transnational technical communities; Venture capital

Indexed keywords

EID: 70349316619     PISSN: 00472506     EISSN: 14786990     Source Type: Journal    
DOI: 10.1057/jibs.2009.6     Document Type: Article

References (62)

1. Aguilera, R. V., & Jackson, G. 2003. The cross-national diversity of corporate governance: Dimensions and determinants. Academy of Management Review, 28(3): 447-465.00.
2. Aharoni, Y. 1960. The foreign investment decision process. Boston, MA: Harvard Graduate School of Business Administration.
3. Ahlstrom, D., & Bruton, G. D. 2006. Venture capital in emerging economies: Networks and institutional change. Entrepreneurship Theory and Practice, 30(2): 299-320.
4. Almeida, P., & Kogut, B. 1999. Localization of knowledge and the mobility of engineers in regional networks. Management Science, 45(7): 905-917.
5. Alonso, W. 2001. Citizenship, nationality and other identities. Journal of International Affairs, 48(2): 585-599.
6. Alsan, M., Bloom, D. E., & Canning, D. 2006. The effect of population health on foreign direct investment inflows to lowand middle-income countries. World Development, 34(4): 613-630.
7. Anderson, B. 1991. Imagined communities (2nd ed.). London: Verso.
8. Baum, J. A. C., & Silverman, B. S. 2004. Picking winners or building them? Alliance, intellectual, and human capital as selection criteria in venture financing and performance of biotechnology startups. Journal of Business Venturing, 19(3): 411-436.
9. Beaverstock, J. V. 2004. 'Managing across borders': Knowledge management and expatriation in professional service legal firms. Journal of Economic Geography, 4(2): 157-179.
10. Bergstrand, J. H. 1985. The gravity equation in international trade: Some microeconomic foundations and empirical evidence. Review of Economic and Statistics, 67(3): 474-481.
11. Bordo, M. D., Taylor, A. M., & Williamson, J. G. 2003. Globalization in historical perspective. Chicago: National Bureau of Economic Research.
12. Borrus,M., Ernst, D., & Haggard, S. 2000. International production networks in Asia: Rivalry or riches? London: Routledge.
13. Bouquet, C., Hébert, L., & Delios, A. 2004. Foreign expansion in service industries: Separability and human capital intensity. Journal of Business Research, 57(1): 35-46.
14. Brown, J. S., & Duguid, P. 1991. Organizational learning and communities-of-practice: Toward a unified view of working, learning, and innovation. Organization Science, 2(1): 40-57.
15. Brown, J. S., & Duguid, P. 2001. Knowledge and organization: A social-practice perspective. Organization Science, 12(2): 198-213.
16. Brown, J. S., & Duguid, P. 2002. Local knowledge: Innovation in the networked age. Management Learning, 33(4): 427-437.
17. Buch, C. M., Kokta, R. M., & Piazolo, D. 2003. Foreign direct investment in Europe: Is there redirection from the South to the East? Journal of Comparative Economics, 31(1): 94-109.
18. Buckley, P. J., & Ghauri, P. N. 2004. Globalization, economic geography and the strategy of multinational enterprises. Journal of International Business Studies, 35(2): 81-98.
19. Bygrave, W. D. 1988. The structure of the investment networks of venture capital firms. Journal of Business Venturing, 3(2): 137-157.
20. Castilla, E. J. 2003. Networks of venture capital firms in Silicon Valley. International Journal of Technology Management, 25(1/2): 113-135.
21. Davidson, W. H. 1980. The location of foreign direct investment activity: Country characteristics and experience effects. Journal of International Business Studies, 11(2): 9-22.
22. Dewhurst, F. W., & Cegarra Navarro, J. G. 2004. External communities of practice and relational capital. The Learning Organization, 11(4/5): 322-331.
23. Di Giovanni, J. 2005. What drives capital flows? The case of cross-border M&A activity and financial deepening. Journal of International Economics, 65(1): 127-149.
24. Dossani, R., & Kenney, M. 2002. Creating an environment for venture capital in India. World Development, 30(2): 227-253.
25. Ernst, D., & Kim, L. 2001. Global production networks, knowledge diffusion, and local capability formation: A conceptual framework. Honolulu, HI: East-West Center.
26. Fiet, J. O. 1996. Fragmentation in the market for venture capital. Entrepreneurship: Theory and Practice, 21(2): 5-20.
27. Florida, R., & Kenney, M. 1988. Venture capital, high technology, and regional development. Regional Studies, 22(1): 33-48.
28. Gillespie, K., Riddle, L., Sayre, E., & Sturges, D. 1999. Diaspora interest in homeland investment. Journal of International Business Studies, 30(3): 623-634.
29. Glick-Schiller, N., Basch, L., & Szanton Blanc, C. 1995. From immigrant to transmigrant: Theorizing transnational migration. Anthropological Quarterly, 68(1): 48-63.
30. Gompers, P. A., & Lerner, J. 1999. The venture capital cycle. Cambridge, MA: MIT Press.
31. Granovetter, M. 1985. Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 91(3): 481-510.
32. Guarnizo, L. E., & Smith, M. P. 1998. The locations of transnationalism. In M. P. Smith & L. E. Guarnizo (Eds), Transnationalism from below: 3-34. New Brunswick, NJ: Transaction Publishers.
33. Gujarati, D. N. 1995. Basic econometrics (3rd ed.). New York: McGraw-Hill.
34. Guler, I., & Guillen, M. 2005. The internationalization of venture capital firms: An empirical examination. Academy of Management Best Paper Proceedings, 2005: I1-I6.
35. Haveman, J. 2006. International Trade Data. http://www. macalester.edu/research/economics/PAGE/HAVEMAN/Trade. Resources/TradeData.html. Accessed 21 February 2006.
36. Jensen, M., & Heesen, M. 2005. VC outlook 2010: A brave, global world. Venture Capital Journal, 1(August): 1.
37. Kelly, P., & Hay, M. 2000. Deal-makers: Reputation attracts quality. Venture Capital, 2(3): 183-202.
38. Kenney, M., & Florida, R. (Eds) 2003. Locating global advantage. Palo Alto, CA: Stanford Business Press.
39. Kenney, M., & Patton, D. 2005. Entrepreneurial geographies: Support networks in three high-technology industries. Economic Geography, 81(2): 201-228.
40. Kenney, M., Haemmig, M., & Goe, W. R. 2008. The globalization of the venture capital industry. In J. T. Macher & D. C. Mowery (Eds), Innovation in global industries: US firms competing in a new world: 313-340. Washington, DC: National Academies Press.
41. Kenney, M., Han, K., & Tanaka, S. 2004. The globalization of venture capital: The cases of Taiwan and Japan. In A. Bartzokas & S. Mani (Eds), Financial systems, corporate investment in innovation and venture capital: 52-84. Northampton, MA: Edward Elgar.
42. Kim, P., Aldrich, H., & Keister, L. 2006. Access (not) denied: The impact of financial, human, and cultural capital on entrepreneurial entry in the United States. Small Business Economics, 27(1): 5-22.
43. Landolt, P., Autler, L., & Baires, S. 1999. From "hermano lejano'' to "hermano mayor": The dialectics of Salvadoran transnationalism. Ethnic and Racial Studies, 22(2): 290-315.
44. Makel, M. M., & Maula, M. V. J. 2006. Interorganizational commitment in syndicated cross-border venture capital investments. Entrepreneurship: Theory and Practice, 30(2): 273-298.
45. Makhija, M. V., Kim, K., & Williamson, S. D. 1997. Measuring globalization of industries using a national industry approach: Empirical evidence across five countries and over time. Journal of International Business Studies, 28(4): 679-710.
46. Martin, R. L., & Moldoveanu, M. C. 2003. Capital versus talent: The battle that's reshaping business. Harvard Business Review, 81(7): 36-41.
47. Morgan, G. 2001. Transnational communities and business systems. Global Networks, 1(2): 113-130.
48. Murtha, T. P., Lenway, S. A., & Hart, J. A. 2001. Managing new industry creation: Global knowledge formation and entrepreneurship in high technology. Palo Alto, CA: Stanford Business Press.
49. Nachum, L., & Zaheer, S. 2005. The persistence of distance? The impact of technology on MNE motivations for foreign investment. Strategic Management Journal, 26(8): 747-767.
50. Neter, J., Wasserman, W., & Kumar, M. H. 1985. Applied linear statistical models (2nd ed.). Homewood, IL: Irwin.
51. Podolny, J. M. 2001. Networks as the pipes and prisms of the market. American Journal of Sociology, 107(1): 33-60.
52. Portes, A. 1996. Global villagers: The rise of transnational communities. The American Prospect, 7(25): 74-77.
53. Portes, A., Haller, W. J., & Guarnizo, L. E. 2002. Transnational entrepreneurs: An alternative form of immigrant economic adaptation. American Sociological Review, 67(2): 278-298.
54. Powell, W. W., Koput, K. W., Bowie, J. I., & Smith-Doerr, L. 2002. The spatial clustering of science and capital: Accounting for biotech firm-venture capital relationships. Regional Studies, 36(3): 291-305.
55. Saxenian, A. 2002. Transnational communities and the evolution of global production networks: The cases of Taiwan, China and India. Industry and Innovation, 9(3): 183-202.
56. Sorenson, O., & Stuart, T. E. 2001. Syndication networks and the spatial distribution of venture capital investments. American Journal of Sociology, 106(6): 1546-1588.
57. Sørheim, R. 2003. The pre-investment behavior of business angels: A social capital approach. Venture Capital, 5(4): 337-364.
58. Steier, L., & Greenwood, R. 2000. Entrepreneurship and the evolution of angel financial networks. Organization Studies, 21(1): 163-192.
59. Takenaka, A. 1999. Transnational community and its ethnic consequences. American Behavioral Scientist, 42(9): 1459-1474.
60. Wright, M., Pruthi, S., & Lockett, A. 2005. International venture capital research: From cross-country comparisons to crossing borders. International Journal of Management Reviews, 7(3): 135-165.
61. Wooldridge, J. M. 2003. Introductory econometrics. Mason, OH: South-Western.
62. Zaheer, S., & Zaheer, A. 2006. Trust across borders. Journal of International Business Studies, 37(1): 21-29. 1339-1358