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Entrepreneurship and organizational design: investor specialization

Entrepreneurship and organizational design: investor specialization
Entrepreneurship and organizational design: investor specialization
Purpose: this paper seeks to investigate the impact of venture capital firm organization (VC) on operations at portfolio companies, emphasizing particularly value added and involvement. Design/methodology/approach: prior literature indicates the importance of organizational design on the VC firm's engagement and monitoring practices. A survey methodology is used to examine such relationships, including the significance of human capital for the process of investor engagement. Findings: the paper finds that VC organizations with a market focus and deal specialization are much more involved in portfolio companies than the firms who diversify their portfolios. This suggests that organizational focus is an important construct for explaining the degree of support accorded to portfolio companies by venture capitalists. The research also evaluates the performance outcomes of VC firm organization. Originality/value: the research emphasizes the importance of organizational factors in the investment strategies of venture capital firms
entrepreneurialism, entrepreneurs, investors, organizational design, venture capital
0025-1747
883-896
Casson, Peter D.
5ac137b1-dc94-41fb-82c5-736ad5be75c2
Nisar, Tahir M.
6b1513b5-23d1-4151-8dd2-9f6eaa6ea3a6
Casson, Peter D.
5ac137b1-dc94-41fb-82c5-736ad5be75c2
Nisar, Tahir M.
6b1513b5-23d1-4151-8dd2-9f6eaa6ea3a6

Casson, Peter D. and Nisar, Tahir M. (2007) Entrepreneurship and organizational design: investor specialization. Management Decision, 45 (5), 883-896. (doi:10.1108/00251740710753693).

Record type: Article

Abstract

Purpose: this paper seeks to investigate the impact of venture capital firm organization (VC) on operations at portfolio companies, emphasizing particularly value added and involvement. Design/methodology/approach: prior literature indicates the importance of organizational design on the VC firm's engagement and monitoring practices. A survey methodology is used to examine such relationships, including the significance of human capital for the process of investor engagement. Findings: the paper finds that VC organizations with a market focus and deal specialization are much more involved in portfolio companies than the firms who diversify their portfolios. This suggests that organizational focus is an important construct for explaining the degree of support accorded to portfolio companies by venture capitalists. The research also evaluates the performance outcomes of VC firm organization. Originality/value: the research emphasizes the importance of organizational factors in the investment strategies of venture capital firms

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More information

Published date: 2007
Keywords: entrepreneurialism, entrepreneurs, investors, organizational design, venture capital

Identifiers

Local EPrints ID: 47666
URI: https://eprints.soton.ac.uk/id/eprint/47666
ISSN: 0025-1747
PURE UUID: 813352e7-75b5-462c-8a73-d17b587aa1dc

Catalogue record

Date deposited: 07 Aug 2007
Last modified: 13 Mar 2019 20:59

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