Contextual status effects: The performance effects of host-country network status and regulatory institutions in cross-border venture capital

Yu Liu*, Markku Maula

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

2 Citations (Scopus)
201 Downloads (Pure)

Abstract

Network status is generally considered to be a valuable firm asset; however, its effects are not well understood in the context of cross-border VC investments, as foreign VC firms can have different statuses in their home and host countries, and prior research has considered only the effects of home-country network status. Theorizing the importance of a foreign VC firm's network status in the host country for cross-border VC investments, we hypothesize a positive performance effect for network status in the host country. Furthermore, we theorize that the performance effect of a VC firm's network status in the host country is stronger in countries with weaker host-country regulatory institutions. We test these hypotheses using a global sample of cross-border VC investments and find support for our arguments.

Original languageEnglish
Article number104216
JournalResearch Policy
Volume50
Issue number5
DOIs
Publication statusPublished - Jun 2021
MoE publication typeA1 Journal article-refereed

Keywords

  • Cross-border venture capital
  • Institutions
  • Networks
  • Status multiplicity

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