Overcoming the Matthew Effect in Status Dominated Environments – a Configurational Analysis of Venture Capital Investments
Year: 2018
Author: Berger, Elisabeth S. C., Kuckertz, Andreas
Credit and Capital Markets – Kredit und Kapital, Vol. 51 (2018), Iss. 2 : pp. 293–314
Abstract
Entering status dominated environments as new entrant is a difficult endeavor. Accumulated advantages go along with the tendency of incumbents to succeed, whereas entrants are likely to lose (Matthew effect). This study examines what combination of deal resources accumulated by venture capital partners lead to high deal performance in order to analyze if new entrants can nonetheless overcome the burden of being new, i. e. having a low status position and only weak ties with current actors in status dominated environments. Our configurational analysis of 333 venture capital investments reveals opportunities for entrants to succeed that go beyond joining forces with established actors. Our findings contribute to research on interorganizational network formation and the strategic actions new entrants on the VC market may take to be successful. Furthermore, the study sheds light on the effect of syndicated opposed to single venture capitalist deals and suggests that successful syndicates require a certain degree of homogeneity among the investors.
Journal Article Details
Publisher Name: Global Science Press
Language: English
DOI: https://doi.org/10.3790/ccm.51.2.293
Credit and Capital Markets – Kredit und Kapital, Vol. 51 (2018), Iss. 2 : pp. 293–314
Published online: 2018-06
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 22
Keywords: Performance New Entrants Status Syndicate Tie Strength M13 D85 G24 L14 L26
Author Details
Berger, Elisabeth S. C. Email
Kuckertz, Andreas Email
-
Standing up against crisis-induced entrepreneurial uncertainty: Fewer teams, more habitual entrepreneurs
Kuckertz, Andreas
International Small Business Journal: Researching Entrepreneurship, Vol. 39 (2021), Iss. 3 P.191
https://doi.org/10.1177/0266242621997782 [Citations: 23]
| Section Title | Page | Action | Price |
|---|---|---|---|
| Overcoming the Matthew Effect in Status Dominated Environments – a Configurational Analysis of Venture Capital Investments | 1 |