Constraints on the control benefits of brokerage: A study of placement agents in U.S. venture capital fundraising

Administrative Science Quarterly

Volumn 54, Issue 4, 2009, Pages 575-601

  Rider, Christopher I ^a  

^a EMORY UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 77049085968     PISSN: 00018392     EISSN: 19303815     Source Type: Journal    
DOI: 10.2189/asqu.2009.54.4.575     Document Type: Article

References (94)

1. Abolafia, M. Y. 1996 Making Markets: Opportunism and Restraint on Wall Street. Cambridge, MA: Harvard University Press.
2. Ahuja, G. 2000 "The duality of collaboration: Inducements and opportunities in the formation of interfirm linkages", Strategic Management Journal, 21: 317-343.
3. Aldrich, H. E., and E. Auster 1986 "Even dwarfs started small: Liabilities of age and size and their strategic implications", In B. M. Staw and L. L. Cummings (eds.), Research in Organizational Behavior, 8: 165-198. Greenwich, CT: JAI Press.
4. Aldrich, H. E., and P. H. Kim 2007 "Small worlds, infinite possibilities? How social networks affect entrepreneurial team formation and search", Strategic Entrepreneurship Journal, 1: 147-165.
5. Argote, L., and D. Epple 1990 "Learning curves in manufacturing", Science, 247: 920-924.
6. Audia, P. G., and H. R. Greve 2006 "Less likely to fail: Performance, firm size, and factory expansion in the shipbuilding industry", Management Science, 52: 83-94.
7. Barron, D. N., E. West, and M. T. Hannan 1994 "A time to grow and a time to die: Growth and mortality of credit unions in New York City, 1914-1990", American Journal of Sociology, 100: 381-421.
8. Baum, J. A. C., and C. Oliver 1991 "Institutional linkages and organizational mortality", Administrative Science Quarterly, 36: 187-218.
9. Becker, G. S. 1973 "A theory of marriage: Part I", Journal of Political Economy, 81: 813-846.
10. Benjamin, B., and J. M. Podolny 1999 "Status, quality, and social order in the California wine industry", Administrative Science Quarterly, 44: 563-589.
11. Bielby, W. T., and D. D. Bielby 1999 "Organizational mediation of project-based labor markets: Talent agencies and the careers of screenwriters", American Sociological Review, 64: 64-85.
12. Blau, P. 1964 Exchange and Power in Social Life. New York: Wiley.
13. Bonacich, P. 1987 "Power and centrality: A family of measures", American Journal of Sociology, 92: 1170-1182.
14. Burt, R. S. 1976 "Position in networks", Social Forces, 55: 93-122.
15. Burt, R. S. 1983 Corporate Profits and Cooptation. New York: Academic Press.
16. Burt, R. S. 1988 "The stability of American markets", American Journal of Sociology, 94: 356-395.
17. Burt, R. S. 1992 Structural Holes: The Social Structure of Competition. Cambridge, MA: Harvard University Press.
18. Burt, R. S. 1997 "The contingent value of social capital", Administrative Science Quarterly, 42: 339-65.
19. Burt, R. S. 2002 "The social capital of structural holes", In M. Guillen, R. Collins, P. England, and M. Meyer (eds.), The New Economic Sociology: Developments in an Emerging Field: 148-192. New York: Russell Sage Foundation.
20. Burt, R. S. 2004 "Structural holes and good ideas", American Journal of Sociology, 110: 349-399.
21. Burt, R. S. 2005 Brokerage and Closure: An Introduction to Social Capital. Oxford: Oxford University Press.
22. Buskens, V., and A. van de Rijt 2008 "Dynamics of networks if everyone strives for structural holes", American Journal of Sociology, 114: 371-407.
23. Carhart, M., J. Carpenter, A. Lynch, and D. Musto 2002 "Mutual fund survivorship", Review of Financial Studies, 15: 1439-1463.
24. Chung, S. A., H. Singh, and K. Lee 2000 "Complementarity, status similarity and social capital as drivers of alliance formation", Strategic Management Journal, 21: 1-22.
25. Cook, K. S., and R. M. Emerson 1978 "Power, equity and commitment in exchange networks", American Sociological Review, 43: 721-39.
26. Fenn, G. W., N. Liang, and S. Prowse 1997 "The private equity market: An overview", Financial Markets, Institutions and Instruments, 6: 1-105.
27. Fernandez, R. M., and R. V. Gould 1994 "A dilemma of state power: Brokerage and influence in the national health policy domain", American Journal of Sociology, 99: 1455-1491.
28. Fernandez-Mateo, I. 2007 "Who pays the price of brokerage? Transferring constraint through price-setting in the staffing sector", American Sociological Review, 72: 291-317.
29. Fernando, C. S., V. A. Gatchev, and P. A. Spindt 2005 "Wanna dance? How firms and underwriters choose each other? Journal of Finance, 60: 2437-2469.
30. Finlay, W., and J. E. Coverdill 2000 "Risk, opportunism and structural holes: How headhunters manage clients and earn fees", Work and Occupations, 27: 377-405.
31. Freeman, J. H. 2001 "Venture capital and modern capitalism", In V. Nee and R. Swedberg (eds.), The Economic Sociology of Capitalism: 144-167. Princeton, NJ: Princeton University Press.
32. Freeman, J. H., G. R. Carroll, and M. T. Hannan 1983 "The liability of newness: Age dependence in organizational death rates", American Sociological Review, 48: 692-710.
33. Galaskiewicz, J. 1979 Exchange Networks and Community Politics. Beverly Hills, CA: Sage.
34. Gargiulo, M., G. Ertug, and C. Galunic 2009 "The two faces of control: Network closure and individual performance among knowledge workers", Administrative Science Quarterly, 54: 299-333.
35. Gompers, P., and J. Lerner 2001 The Money of Invention: How Venture Capital Creates New Wealth. Boston: Harvard Business School Press.
36. Gould, R. V. 1989 "Power and social structure in community elites", Social Forces, 68: 531-552.
37. Gould, R. V., and R. M. Fernandez 1989 "Structures of mediation: A formal approach to brokerage in transaction networks", Sociological Methodology, 19: 89-126.
38. Granovetter, M. 1985 "Economic action and social structure: The problem of embeddedness", American Journal of Sociology, 91: 481-510.
39. Gulati, R. 1995 "Social structure and alliance formation patterns: A longitudinal analysis", Administrative Science Quarterly, 40: 619-652.
40. Gulati, R., and M. Gargiulo 1999 "Where do interorganizational networks come from? American Journal of Sociology, 104: 1439-1493.
41. Hallen, B. L. 2008 "The causes and consequences of the initial network positions of new organizations: From whom do entrepreneurs receive investments? Administrative Science Quarterly, 53: 685-718.
42. Han, S. 1994 "Mimetic isomorphism and its effect on the audit services market", Social Forces, 73: 637-664.
43. Hannan, M. T., and J. H. Freeman 1984 "Structural inertia and organizational change", American Sociological Review, 49: 149-164.
44. Hargadon, A., and R. I. Sutton 1997 "Technology brokering and innovation in a product development firm", Administrative Science Quarterly, 42: 716-749.
45. Haveman, H. 1993 "Follow the leader: Mimetic isomorphism and entry into new markets", Administrative Science Quarterly, 38: 593-627.
46. Higgins, M., and R. Gulati 2003 "Getting off to a good start: The effects of upper echelon affiliations on underwriter prestige", Organization Science, 14: 244-263.
47. Hochberg, Y., A. Ljungqvist, and Y. Lu 2007 "Whom you know matters: Venture capital networks and investment performance", Journal of Finance, 63: 251-301.
48. Jensen, M. 2003 "The role of network resources in market entry: Commercial banks' entry into investment banking, 1991-1997", Administrative Science Quarterly, 48: 466-497.
49. Jonsson, S., H. R. Greve, and T. Fujiwara-Greve 2009 "Undeserved loss: The spread of legitimacy loss to innocent organizations in response to reported corporate deviance", Administrative Science Quarterly, 54: 195-228.
50. Kaplan, S. N., and A. Schoar 2005 "Private equity performance: Returns, persistence, and capital flows", Journal of Finance, 60: 1791-1823.
51. Karmin, C. 2009 "Pay-to-play probes go nation-wide", Wall Street Journal, May 2: B3.
52. Karmin, C., and P. Lattman 2009 "Criminal case ensnares aides to ex-New York comptroller", Wall Street Journal, March 20: C1.
53. Khurana, R. 2002 "Market triads: A theoretical and empirical analysis of market intermediation", Journal for the Theory of Social Behavior, 32: 239-262.
54. King, G., and L. Zeng 2001 "Logistic regression in rare events data", Political Analysis, 9: 137-163.
55. Lazarsfeld, P. F., and R. K. Merton 1954 "Friendship as a social process: A substantive and methodological analysis", In M. Berger (ed.), Freedom and Control in Modern Society: 18-66. New York: Van Nostrand.
56. Levinthal, D. 1991 "Random walks and organizational mortality", Administrative Science Quarterly, 36: 397-420.
57. Levitt, S. D., and C. Syverson 2008 "Market distortions when agents are better informed: The value of information in real estate transactions", Review of Economics and Statistics, 90: 599-611.
58. Lincoln, J. R. 1984 "Analyzing relations in dyads: Problems, models, and an application to interorganizational research", Sociological Methods and Research, 13: 45-76.
59. Marsden, P. V. 1982 "Brokerage behavior in restricted exchange networks", In P. V. Marsden and N. Lin (eds.), Social Structure and Network Analysis: 201-218. Beverly Hills, CA: Sage.
60. Marsden, P. V. 1983 "Restricted access in networks and models of power", American Journal of Sociology, 88: 686-717.
61. McPherson, M., L. Smith-Lovin, and J. Cook 2001 "Birds of a feather: Homophily in social networks", Annual Review of Sociology, 27: 415-444.
62. Metrick, A., and A. Yasuda 2009 "The economics of private equity funds", Review of Financial Studies (in press).
63. Mizruchi, M. 1989 "Similarity of political behavior among large American corporations", American Journal of Sociology, 95: 401-424.
64. Mizruchi, M., and L. B. Stearns 2001 "Getting deals done: The use of social networks in bank decision-making", American Sociological Review, 66: 647-671.
65. Obstfeld, D. 2005 "Social networks, the tertius iungens orientation, and involvement in innovation", Administrative Science Quarterly, 50: 100-130.
66. Padgett, J. F., and C. K. Ansell 1993 "Robust action and the rise of the Medici, 1400-1434", American Journal of Sociology, 98: 1259-1319.
67. Podolny, J. 1993 "A status-based model of market competition", American Journal of Sociology, 98: 829-872.
68. Podolny, J. 1994 "Market uncertainty and the social character of economic exchange", Administrative Science Quarterly, 39: 458-483.
69. Podolny, J. 2001 "Networks as the pipes and prisms of the market", American Journal of Sociology, 107: 33-60.
70. Podolny, J. 2005 Status Signals: A Sociological Study of Market Competition. Princeton, NJ: Princeton University Press.
71. Podolny, J., and J. Baron 1997 "Resources and relationships: Social networks and mobility in the workplace", American Sociological Review, 62: 673-693.
72. Private Equity International 2006 "The surveys", A Guide to Private Equity Fund Placement Specialists: 75-96. London: Private Equity International.
73. Rao, H. 1994 "The social construction of reputation: Certification contests, legitimation, and the survival of organizations in the American automobile industry, 1895-1912", Strategic Management Journal, 15: 29-44.
74. Reagans, R., and E. W. Zuckerman 2008 "Why knowledge does not equal power: The network redundancy trade-off", Industrial and Corporate Change, 17: 903-944.
75. Ryall, M. D., and O. Sorenson 2007 "Brokers and competitive advantage", Management Science, 53: 566-583.
76. Simmel, G. 1955 Conflict and the Web of Group Affiliations. K. Wolff and R. Bendix, eds. (First published in 1922.) Glencoe, IL: Free Press.
77. Sørensen, A. B. 1996 "The structural basis of social inequality", American Journal of Sociology, 101: 1333-1365.
78. Sorenson, O., and T. E. Stuart 2001 "Syndication networks and the spatial distribution of venture capital investments", American Journal of Sociology, 106: 1546-1586.
79. Sorenson, O., and T. E. Stuart 2008 "Bringing the context back in: Settings and the search for syndicate partners in venture capital investment networks", Administrative Science Quarterly, 53: 266-294.
80. Staw, B. M., and L. D. Epstein 2000 "What bandwagons bring: Effects of popular management techniques on corporate performance, reputation, and CEO pay", Administrative Science Quarterly, 45: 523-556.
81. Still, M. C., and D. Strang 2009 "Who does an elite organization emulate? Administrative Science Quarterly, 54: 58-89.
82. Stinchcombe, A. L. 1965 "Social structure and organizations", In J. G. March (ed.), Handbook of Organizations: 142-193. Chicago: Rand McNally.
83. Stuart, T. E. 1998 "Network positions and propensities to collaborate: An investigation of strategic alliance formation in a high-technology industry", Administrative Science Quarterly, 43: 668-698.
84. Stuart, T. E., and O. Sorenson 2007 "Strategic networks and entrepreneurial ventures", Strategic Entrepreneurship Journal, 1: 211-227.
85. Stuart, T. E., H. Hoang, and R. Hybels 1999 "Interorganizational endorsements and the performance of entrepreneurial ventures", Administrative Science Quarterly, 44: 315-349.
86. Stuart, T. E., S. Z. Ozdemir, and W. W. Ding 2007 "Vertical alliance networks: The case of university-biotechnology-pharmaceutical alliance chains", Research Policy, 36: 477-498.
87. Swensen, D. 2000 Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment. New York: Free Press.
88. Thompson, J. 1967 Organizations in Action: Social Science Bases of Administrative Theory. New York: McGraw-Hill.
89. Thompson, R. 2005 "Venture capital's comeback", Harvard Business School Bulletin, March. http://www.alumni.hbs.edu/bulletin/2005/march/venturecapital.html. Accessed September 2, 2008.
90. Tomz, M., J. Wittenberg, and G. King 2003 CLARIFY: Software for Interpreting and Presenting Statistical Results. Version 2.1. Stanford University, University of Wisconsin, and Harvard University. January 5. Available at http://gking.harvard.edu/.
91. Walker, G., B. Kogut, and W. Shan 1997 "Social capital, structural holes and the formation of an industry network", Organization Science, 8: 109-125.
92. Weigelt, K., and C. Camerer 1988 "Reputation and corporate strategy: A review of recent theory and applications", Strategic Management Journal, 9: 443-454.
93. White, H. 1981 "Where do markets come from? American Journal of Sociology, 87: 517-547.
94. Zaheer, A., and G. Soda 2009 "Network evolution: The origins of structural holes", Administrative Science Quarterly, 54: 1-31.