This paper compares resource-based and social structural explanations for firms’ network positions and performance. Our distributed lag analysis of an extensive data set of U.S. venture capital investments and their syndicate structures in 1986–2000 suggests that venture capital firms in central network positions increase their market share of portfolio company initial public offerings in subsequent years. Consistent with the social structural argument, our results further demonstrate that prior network positions tend to determine future positions. An analysis of causality shows that past network position tends to dominate the observable quality of firm resources as a determinant of the subsequent performance and position of the firm. Our results also imply that the structure of venture capital syndication networks is rigid and creates high barriers to entry.
|Title of host publication||Frontiers of entrepreneurship research 2002. Babson College, Babson Park, MA, USA|
|Publication status||Published - 2002|
|MoE publication type||A4 Article in a conference publication|