Learning patterns in venture capital investing in new industries

Industrial and Corporate Change

Volumn 21, Issue 6, 2012, Pages 1389-1426

  Dimov, Dimo ^a   de Holan, Pablo Martin ^b   Milanov, Hana ^c  

^a NEWCASTLE UNIVERSITY BUSINESS SCHOOL   (United Kingdom)

^b EMLYON BUSINESS SCHOOL   (France)

^c IE BUSINESS SCHOOL   (Spain)

Author keywords

[No Author keywords available]

Indexed keywords

CAPITAL MARKET; FIRM SIZE; HIGH TECHNOLOGY INDUSTRY; INVESTMENT; LEARNING; ORGANIZATIONAL FRAMEWORK;

UNITED STATES;

EID: 84870412726     PISSN: 09606491     EISSN: 14643650     Source Type: Journal    
DOI: 10.1093/icc/dts010     Document Type: Article

References (87)

1. Allison, P. D. (2005), Fixed Effects Regression Methods for Longitudinal Data Using SAS. SAS Institute: Cary, NC.
2. Amburgey, T. L. and A. S. Miner (1992), 'Strategic momentum: the effects of repetitive, positional and contextual momentum on merger activity,' Strategic Management Journal, 13, 335-348.
3. Amburgey, T. L., D. Kelly and W. P. Barnett (1993), 'Resetting the clock: the dynamics of organizational change and failure,' Administrative Science Quarterly, 38, 51.
4. Andersen, P. K. and R. D. Gill (1982), 'Cox's regression model for counting processes: a large sample study,' Annals of Statistics, 10, 1100-1120.
5. Argote, L. (1999), Organizational Learning: Creating, Retaining, and Transferring Knowledge. Kluwer Academic: Boston.
6. Argote, L., S. L. Beckman and D. Epple (1990), 'The persistence and transfer of learning in industrial settings,' Management Science, 36, 140-155.
7. Barnett, W. P. and G. R. Carroll (1995), 'Modeling internal organizational change,' Annual Review of Sociology, 21, 217-236.
8. Baum, J. A. C., S. X. Li and J. M. Usher (2000), 'Making the next move: how experiential and vicarious learning shape the locations of chains' acquisitions,' Administrative Science Quarterly, 45, 766-801.
9. Benkard, C. L. (2000), 'Learning and forgetting: the dynamics of aircraft production,' American Economic Review, 90, 1034-1054.
10. Blossfeld, H. P., K. Golsch and G. Rohwer (2007), Event History Analysis with Stata. Lawrence Erlbaum Associates: Mahwah, NJ.
11. Boeker, W. (1988), 'Organizational origins: entrepreneurial and environmental imprinting at the time of founding,' in G. R. Carroll (ed.), Ecological Models of Organizations. Ballinger Publishing: Cambridge, MA, pp. 33-51.
12. Carlson, J. G. and A. J. Rowe (1976), 'How much does forgetting cost?' Industrial Engineering, 8, 40.
13. Chesbrough, H. W. (1999), 'The organizational impact of technological change: a comparative theory of national institutional factors,' Industrial and Corporate Change, 8, 447-485.
14. Cox, D. R. (1972), 'Regression models and life-tables,' Journal of the Royal Statistical Society, Series B, 34, 187-220.
15. Cumming, D., G. Fleming and J. A. Suchard (2005), 'Venture capitalist value-added activities, fundraising and drawdowns,' Journal of Banking and Finance, 29, 295-331.
16. Cyert, R. M. and J. G. March (1963), A Behavioral Theory of the Firm. Prentice-Hall: Englewood Cliffs, NJ.
17. Da Rin, M., G. Nicodano and A. Sembenelli (2006), 'Public policy and the creation of active venture capital markets,' Journal of Public Economics, 90, 1699-1723.
18. Darr, E., L. Argote and D. Epple (1995), 'The acquisition, transfer and depreciation of knowledge in service organizations: productivity in franchises,' Management Science, 41, 1750-1762.
19. Day, G. S. (1994), 'The capabilities of market-driven organizations,' Journal of Marketing, 58, 37-52.
20. De Clercq, D. and D. Dimov (2008), 'Internal knowledge development and external knowledge access in venture capital investment performance,' Journal of Management Studies, 45, 585-612.
21. Dimov, D. and H. Milanov (2010), 'The interplay of need and opportunity in venture capital syndication,' Journal of Business Venturing, 25, 331-348.
22. Dimov, D., D. A. Shepherd and K. M. Sutcliffe (2007), 'Requisite expertise, firm reputation, and status in venture capital investment allocation decisions,' Journal of Business Venturing, 22, 481-502.
23. Dougherty, D. (1992), 'Interpretive barriers to successful product innovation in large firms,' Organization Science, 3, 179-202.
24. Dougherty, D. and C. Hardy (1996), 'Sustained product innovation in large, mature organizations: overcoming innovation-to-organization problems,' Academy of Management Journal, 39, 1120-1153.
25. Eckhardt, J. T., S. Shane and F. Delmar (2006), 'Multistage selection and the financing of new ventures,' Management Science, 52, 220-232.
26. Ezell, M. E., K. C. Land and L. E. Cohen (2003), 'Modeling multiple failure time data: a survey of variance-corrected proportional hazards models with empirical applications to arrest data,' Sociological Methodology, 33, 111-167.
27. Fenn, G., N. Liang and S. Prowse (1995), The Economics of the Private Equity Market. Board of Governors of the Federal Reserve System: Washington, DC.
28. Florida, R. L. and M. Kenney (1988a), 'Venture capital and high technology entrepreneurship,' Journal of Business Venturing, 3, 301-319.
29. Florida, R. L. and M. Kenney (1988b), 'Venture capital-financed innovation and technological change in the USA,' Research Policy, 17, 119-137.
30. Freeman, S. (1999), 'Identity maintenance and adaptation: a multilevel analysis of response to loss,' Research in Organizational Behavior, 21, 247-294.
31. Gompers, P. and J. Lerner (1998), 'What drives venture capital fundraising?' Brookings Papers on Economic Activity: Microeconomics, 1998, 149-204.
32. Gompers, P. and J. Lerner (1999), The Venture Capital Cycle. MIT Press: Cambridge, MA.
33. Gompers, P. and J. Lerner (2001), 'The venture capital revolution,' Journal of Economic Perspectives, 15, 145-168.
34. Grambsch, P. M. and T. M. Therneau (1994), 'Proportional hazards tests and diagnostics based on weighted residuals,' Biometrika, 81, 515-526.
35. Greve, H. R. (1998), 'Performance, aspirations and risky organizational change,' Administrative Science Quarterly, 43, 58.
36. Guler, I. (2007), 'Throwing good money after bad? A multi-level study of sequential decision making in the venture capital industry,' Administrative Science Quarterly, 52, 248-285.
37. Gupta, U. (2000), Done Deals: Venture Capitalists Tell Their Stories. Harvard Business Press: Boston, MA, p. 105.
38. Hannan, M. T. and J. Freeman (1984), 'Structural inertia and organizational change,' American Sociological Review, 49, 149-164.
39. Hellman, T. and M. Puri (2002), 'Venture capital and the professionalization of start-up firms: empirical evidence,' Journal of Finance, 57, 169-197.
40. Hisrich, R. D. and A. D. Jankowicz (1990), 'Intuition in venture capital decisions: an exploratory study using a new technique,' Journal of Business Venturing, 5, 49-62.
41. Hochberg, Y. V., A. Ljungqvist and Y. Lu (2007), 'Whom you know matters: venture capital networks and investment performance,' Journal of Finance, 62, 251-302.
42. Holmqvist, M. (2004), 'Experiential learning processes of exploitation and exploration within and between organizations: an empirical study of product development,' Organization Science, 15, 70-81.
43. Hsu, D. H. (2006), 'Venture capitalists and cooperative start-up commercialization strategy,' Management Science, 52, 204-219.
44. Hsu, D. H. and M. Kenney (2005), 'Organizing venture capital: the rise and demise of American Research & Development Corporation, 1946-1973,' Industrial and Corporate Change, 14, 579-616.
45. Huber, G. P. (1991), 'Organizational learning: the contributing processes and the literature,' Organization Science, 2, 88-115.
46. Kortum, S. and J. Lerner (2000), 'Assessing the contribution of venture capital to innovation,' RAND Journal of Economics, 31, 674-692.
47. Lavie, D. and L. Rosenkopf (2006), 'Balancing exploration and exploitation in alliance formation,' Academy of Management Journal, 49, 797-818.
48. Lerner, J. and A. Schoar (2004), 'The illiquidity puzzle: theory and evidence from private equity,' Journal of Financial Economics, 72, 3-40.
49. Levitt, B. and J. G. March (1988), 'Organizational learning,' Annual Review of Sociology, 14, 319-340.
50. MacMillan, I., R. Siegel and P.N. Subbanarasimha (1985), 'Criteria used by venture capitalists to evaluate new venture proposals,' Journal of Business Venturing, 1, 119-128.
51. Manigart, S., K. De Waele, M. Wright, K. Robbie, P. Desbrieres, H. Sapienza et al. (2002), 'Determinants of required return in venture capital investments: a five-country study,' Journal of Business Venturing, 17, 291-312.
52. March, J. G. (1991), 'Exploration and exploitation in organizational learning,' Organization Science, 2, 71-87.
53. March, J. G., M. Schulz and X. Zhou (2000), The Dynamics of Rules: Change in Written Organizational Codes. Stanford University Press: Stanford, CA.
54. Marcus, A. A. and M. L. Nichols (1999), 'On the edge: heeding the warnings of unusual events,' Organization Science, 10, 482-499.
55. Martin de Holan, P. and N. Phillips (2004), 'Remembrance of things past? The dynamics of organizational forgetting,' Management Science, 50, 1603-1613.
56. Mayer, C., K. Schoorsb and Y. Yafeh (2005), 'Sources of funds and investment activities of venture capital funds: evidence from Germany, Israel, Japan, and the United Kingdom,' Journal of Corporate Finance, 11, 586-608.
57. Miller, D. and M.-J. Chen (1996), 'The simplicity of competitive repertoires: an empirical analysis,' Strategic Management Journal, 17, 419-439.
58. Miner, A. S. and P. Anderson (1999), 'Industry and population-level learning: organizational, interorganizational and collective learning processes,' Advances in Strategic Management, 16, 1-30
59. Miner, A. S. and S. J. Mezias. (1996), 'Ugly duckling no more: pasts and futures of organizational learning research,' Organization Science, 7, 88-99.
60. Mintzberg, H. (1978), 'Patterns in strategy formation,' Management Science, 24, 934-948.
61. Morita, J. G., T. W. Lee and R. T. Mowday (1993), 'The regression-analog to survival analysis: a selected application to turnover research,' Academy of Managament Journal, 36, 1430-1465.
62. Mowery, D. C. and N. Rosenberg (1998), Paths of Innovation: Technological Change in 20th Century America. Cambridge University Press: Cambridge, UK.
63. Munari, F. and L. Toschi (2011), 'Do venture capitalists have a bias against investment in academic spin-offs? Evidence from the micro- and nanotechnology sector in the UK,' Industrial and Corporate Change, 20, 397-432.
64. Nelson, R. R. and S. Winter (1982), An Evolutionary Theory of Economic Change. Harvard University Press: Cambridge, MA.
65. Nonaka, I. (1994), 'A dynamic theory of organizational knowledge creation,' Organization Science, 5, 14-37.
66. Ocasio, W. (1997), 'Towards an attention-based view of the firm,' Strategic Management Journal, 18, 187-206.
67. OECD (2003), Venture capital policy review: United States. Directorate for Science, Technology and Industry.
68. Patzelt, H., D. Z. Knyphausen-Aufseß and H. T. Fischer. (2009), 'Upper echelons and portfolio strategies of venture capital firms,' Journal of Business Venturing, 24, 558-572.
69. Prentice, R. L., B. J. Williams and A. V. Peterson (1981), 'On the regression analysis of multivariate failure time data,' Biometrika, 68, 373-379.
70. Sahlman, W. A. (1990), 'The structure and governance of venture-capital organizations,' Journal of Financial Economics, 27, 473-521.
71. Sapienza, H. J. (1992), 'When do venture capitalists add value?' Journal of Business Venturing, 7, 9.
72. Saxenian, A. L. (1994), Regional Advantage: Culture and Competition in Silicon Valley and Route 128. Harvard University Press: Cambridge, MA.
73. Schulz, M. (1998), 'Limits to bureaucratic growth: the density dependence of organizational rule births,' Administrative Science Quarterly, 43, 845-876.
74. Schulz, M. (2001), 'The uncertain relevance of newness: organizational learning and knowledge flows,' Academy of Management Journal, 44, 661-681.
75. Sidhu, J. S., H. R. Commandeur and H. W. Volberda (2007), 'The multifaceted nature of exploration and exploitaiton: value of supply, demand, and spatial search for innovation,' Organization Science, 18, 20-38.
76. Sorenson, O. and T. E. Stuart (2001), 'Syndication networks and the spatial distribution of venture capital investments,' American Journal of Sociology, 106, 1546-1588.
77. 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.
78. Stinchcombe, A. (1965), 'Social structure and organizations,' in J. G. March (ed.), Handbook of Organizations. Rand McNally: New York, pp. 142-193.
79. Stuart, T. and O. Sorenson (2003), 'Liquidity events and the geographic distribution of entrepreneurial activity,' Administrative Science Quarterly, 48, 175-201.
80. Sutton, R. S. and A. G. Barto (1998), Reinforcement Learning: An Introduction. MIT Press: Cambridge, MA.
81. Swaminathan, A. (1996), 'Environmental conditions at founding and organizational mortality: a trial-by-fire model,' Academy of Management Journal, 39, 1350-1377.
82. Therneau, T. M. and P. M. Grambsch (2000), Modeling Survival Data: Extending the Cox Model. Springer-Verlag: New York.
83. Tushman, M. E. and E. Romanelli (1985), 'Organizational evolution: a metamorphosis model of convergence and reorientation,' in B. Staw and L. Cummings (eds), Research in Organizational Behavior, Vol. 7, JAI Publishers: Greenwich, CT, pp. 171-222.
84. Von Burg, U. and M. Kenney (2000), 'Venture capital and the birth of the local area networking industry,' Research Policy, 29, 1135-1155.
85. Widicus, W. W. (1966), 'A Quantitative Analysis of the Small Business Investment Company Program,' Journal of Financial and Quantitative Analysis, 1, 81-111.
86. Zhao, Z., J. Anand and W. Mitchell (2004), 'Transferring collective knowledge: teaching and learning in the Chinese auto industry,' Strategic Organization, 2, 133-167.
87. Zhou, X. (1993), 'The dynamics of organizational rules,' American Journal of Sociology, 98, 1134-1166.