How does VC feedback affect start-ups?

Venture Capital

Volumn 13, Issue 3, 2011, Pages 243-265

  Chugh, Harveen ^a   Nicolaou, Nicos ^b   Barnes, Simon ^c  

^a ROYAL HOLLOWAY UNIVERSITY OF LONDON   (United Kingdom)

^b UNIVERSITY OF CYPRUS   (Cyprus)

^c Circadia Ventures LLP   (United Kingdom)

Author keywords

escalation of commitment; feedback; organizational learning; start ups; university spin offs; venture capital

Indexed keywords

EID: 84861117614     PISSN: 13691066     EISSN: 14645343     Source Type: Journal    
DOI: 10.1080/13691066.2011.600285     Document Type: Article

References (69)

1. Aldrich, H. E. and Martinez, M. A. 2001. Many are called, but few are chosen: An evolutionary perspective for the study of entrepreneurship. Entrepreneurship Theory and Practice, 25: 41-56.
2. Argyris, C. 1976. Single-loop and double-loop models in research on decision making. Administrative Science Quarterly, 21(3): 363-375.
3. Argyris, C. and Schön, D. A. 1978. Organizational learning: A theory of action perspective, Reading, MA: Addison-Wesley.
4. Argyris, C. and Schön, D. A. 1996. Organizational learning II: Theory, method and practice, Reading, MA: Addison-Wesley.
5. Bailey, K. D. 1994. Typologies and taxonomies: An introduction to classification techniques, Thousand Oaks, California: Sage Publications.
6. Bapuji, H. and Crossan, M. 2004. From questions to answers: Reviewing organizational learning research. Management Learning, 35(4): 397-417.
7. Berglund, H., Hellström, T. and Sjölander, S. 2007. Entrepreneurial learning and the role of venture capitalists. Venture Capital, 9(3): 165-181.
8. Brockner, J. 1992. The escalation of commitment to a failing course of action: Toward theoretical progress. Academy of Management Review, 17(1): 39-61.
9. Brown, J. S. and Duguid, P. 1991. Organizational learning and communities-of-practice: Towards a unified view of working learning and innovation. Organization Science, 2(1): 40-47.
10. Bygrave, W. and Zacharakis, A. 2008. Entrepreneurship, New York: John Wiley and Sons, Inc.
11. Cohen, W. M. and Levinthal, D. A. 1990. Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1): 128-152.
12. Cope, J., Cave, F. and Eccles, S. 2004. Attitudes of venture capital investors towards entrepreneurs with previous business failures. Venture Capital, 6(2/3): 147-172.
13. Crossan, M. M., Lane, H. W. and White, R. E. 1999. An organizational learning framework: From intuition to institution. Academy of Management Review, 24(3): 522-537.
14. Cyert, R. M. and March, J. G. 1963. A behavioral theory of the firm, 2nd ed, New Jersey: Prentice Hall.
15. DeTienne, D. R., Shepherd, D. and De Castro, J. O. 2008. The fallacy of 'only the strong survive': The effects of extrinsic motivation on the persistence decisions for under-performing firms. Journal of Business Venturing, 23: 528-546.
16. Easterby-Smith, M., Antonacopoulou, E., Simm, D. and Lyles, M. 2004. Constructing contributions to organizational learning: Argyris and the next generation. Management Learning, 35(4): 371-380.
17. Easterby-Smith, M. and Lyles, M. 2003. Re-reading organizational learning: Selective memory, forgetting, and adaptation. Academy of Management Executive, 17(2): 51-55.
18. Eisenhardt, K. M. 1989. Building theories from case study research. Academy of Management Review, 14(4): 532-550.
19. Eisenhardt, K. M. and Graebner, M. E. 2007. Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50(1): 25-32.
20. Ferlie, E., Fitzgerald, L., Wood, M. and Hawkins, C. 2005. The nonspread of innovations: The mediating role of professionals. Academy of Management Journal, 48(1): 117-134.
21. Fox, F. V. and Staw, B. M. 1979. The trapped administrator: Effects of job insecurity and policy resistance upon commitment to a course of action. Administrative Science Quarterly, 24: 449-471.
22. Franklin, R., Holi, M. and Lapinski, J. 2007. Spinning out quality: University spin-out companies in the UK, Cambridge, UK: Library House.
23. Gatewood, E.J., Shaver, K.G., Powers, J.B. and Gartner, W.B. 2002. Entrepreneurial expectancy, task effort, and performance. Entrepreneurship Theory and practice, 27(2): 187-206.
24. Gephart, R. P. 2004. From the editors: Qualitative research and the Academy of Management Journal. Academy of Management Journal, 47(4): 454-462.
25. Gimeno, J., Folta, T. B., Cooper, A. C. and Woo, C. Y. 1997. Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly, 42: 750-783.
26. Hakim, C. 1987. Research design: Strategies and choices in the design of social research, London: Routledge.
27. Hedberg, B. 1981. "How organizations learn and unlearn". In Handbook of organizational design, Edited by: Nystrom, P. C. and Starbuck, W. H. London: Oxford University Press, 3-27.
28. Lee, T. W., Mitchell, T. R. and Sablynski, S. 1999. Qualitative research in organizational and vocational psychology, 1979-1999. Journal of Vocational Behavior, 55: 161-187.
29. Lehtonen, O. and Lahti, T. 2009. 2009. The role of advisors in the venture capital investment process. Venture Capital, II(3): 229-54.
30. Lerner, J., Shane, H. and Tsai, A. 2003. Do equity financing cycles matter? Evidence from biotechnology alliances. Journal of Financial Economics, 67: 411-446.
31. Levie, J. and Gimmon, E. 2008. Mixed signals: Why investors may misjudge first time high technology venture founders. Venture Capital, 10(3): 233-256.
32. Maitlis, S. and Lawrence, T. B. 2007. Triggers and enablers of sensegiving in organizations. Academy of Management Journal, 50(1): 57-84.
33. Mason, C. M. and Harrison, R. T. 2003. 'Auditioning for money': What do technology investors look for at the initial screening stage?. Journal of Private Equity, 6(2): 29-42.
34. Mason, C. M. and Harrison, R. T. 2004. Does investing in technology-based firms involve higher risk? An exploratory study of the performance of technology and non-technology investments by business angels. Venture Capital, 6(4): 313-332.
35. McCarthy, A. M., Schoorman, D. F. and Cooper, A. C. 1993. Reinvestment decisions by entrepreneurs: Rational decision-making or escalation of commitment. Journal of Business Venturing, 8: 9-24.
36. McNamara, G., Moon, H. and Bromiley, P. 2002. Banking on commitment: Intended and unintended consequences of an organization's attempt to attenuate escalation of commitment. Academy of Management Journal, 45(2): 443-452.
37. Miles, M. B. and Huberman, A. M. 1994. Qualitative data analysis: An expanded sourcebook, 2nd ed, Thousand Oaks, CA: Sage.
38. Nicolaou, N. and Birley, S. 2003. Academic networks in a trichotomous categorisation of university spinouts. Journal of Business Venturing, 18(3): 333-359.
39. O'Shea, R., Chugh, H. and Allen, T. 2008. Determinants and consequences of university spinoff activity: A conceptual framework. Journal of Technology Transfer, 33(6): 653-666.
40. Ortín-Ángel, P. and Vendrell-Herrero, F. 2010. Why do university spin-offs attract more venture capitalists?. Venture Capital, 12(4): 285-306.
41. Patton, M. Q. 1990. Qualitative evaluation and research methods, 2nd ed, London: Sage.
42. Pentland, B. T. 1999. Building process theory with narrative: From description to explanation. Academy of Management Review, 24(4): 711-724.
43. Peters, M. 2004. How the campuses compare. The Guardian, 4 April [Online] Available at: http://www.guardian.co.uk/business/2004/apr/04/theobserver.observerbusiness5?INTCMP= SRCH (accessed June 12, 2004)
44. Pratt, M. G., Rockman, K. W. and Kauffman, J. B. 2006. Constructing professional identity: The role of work and identity learning cycles in the customization of identity among medical residents. Academy of Management Journal, 49(2): 235-262.
45. Rothaermel, F. T. and Thursby, M. 2005. Incubator firm failure or graduation? The role of university linkages. Research Policy, 34: 1076-1090.
46. Rothaermel, F. T., Agung, S. D. and Jiang, L. 2007. University entrepreneurship: A taxonomy of the literature. Industrial and Corporate Change, 16(4): 691-791.
47. Sapienza, H. J. 1992. When do venture capitalists add value?. Journal of Business Venturing, 7: 9-27.
48. Sapienza, H. J. and Korsgaard, M. A. 1996. Procedural justice in entrepreneur-investor relations. Academy of Management Journal, 39(3): 544-574.
49. Schulz, M. 2002. "Organizational learning". In The Blackwell companion to organizations, Edited by: Joel, A. and Baum, C. 415-441. Oxford: Blackwell.
50. Scott, J. 1990. A matter of record: Documentary sources in social research, Cambridge: Basil Blackwell.
51. Senge, P. M. 1990. The fifth discipline: The art and practice of the learning organisation, New York: Currency Doubleday.
52. Shane, S. 2004. Academic entrepreneurship: University spinoffs and wealth creation, Cheltenham, UK: Edward Elgar.
53. Shane, S. and Stuart, T. 2002. Organizational endowments and the performance of university start-ups. Management Science, 48(1): 154-170.
54. Shepherd, D. A. and Zacharakis, A. 2001. The venture capitalist-entrepreneur relationship: control, trust and confidence in co-operative behaviour. Venture Capital, 3(2): 129-149.
55. Shepherd, D. A. and Zacharakis, A. 2002. Venture capitalists' expertise: A call for research into decision aids and cognitive feedback. Journal of Business Venturing, 17: 1-20.
56. Smith, K. B. 2002. Typologies, taxonomies, and the benefits of policy classification. Policy Studies Journal, 30(3): 379-395.
57. Staw, B. M. 1976. Knee-deep in the big muddy: A study of escalating commitment to a chosen course of action. Organizational Behavior and Human Performance, 16(1): 27-44.
58. Staw, B. M. 1981. The escalation of commitment to a course of action. Academy of Management Review, 6(4): 577-587.
59. Staw, B. M. and Ross, J. 1978. Commitment to a policy decision: A multi-theoretical perspective. Administrative Science Quarterly, 23: 40-64.
60. Staw, B. M. and Ross, J. 1989. Understanding behavior in escalation situations. Science, 246(4927): 213-220.
61. Strauss, A. and Corbin, J. 1998. Basics of qualitative research: Techniques and procedures for developing grounded theory, 2nd ed, Thousand Oaks, CA: Sage.
62. Timmons, J. A. and Spinelli, S. 2007. New venture creation: Entrepreneurship for the 21st century (7th ed.), New York, NY: McGraw-Hill/Irwin.
63. Van de Ven, A. H. 1992. "Longitudinal methods for studying the process of entrepreneurship". In The state and the art of entrepreneurship, Edited by: Donald, L. Sexton and John, D. Kasarda. 214-242. Boston: PWS-Kent.
64. Wang, C. and Chugh, H. 2010. Entrepreneurial learning: Past research and future challenges Babson college entrepreneurship research conference, Lausanne, Switzerland
65. Whetten, D. A. 1989. What constitutes a theoretical contribution?. Academy of Management Review, 14(4): 490-495.
66. Woo, C. Y., Daellenbach, U. and Nicholls-Nixon, C. 1994. Theory building in the presence of'randomness': The case of venture creation and performance. Journal of Management Studies, 31(4): 507-524.
67. Wright, M., Lockett, A., Clarysse, B. and Binks, M. 2006. University spin-out companies and venture capital. Research Policy, 35(4): 481-501.
68. Yin, R. K. 2003. Case study research: Design and methods, 3rd ed, Thousand Oaks, CA: Sage.
69. Zacharakis, A. L. and Meyer, G. D. 1998. A lack of insight: Do venture capitalists really understand their own decision process?. Journal of Business Venturing, 13: 57-76.