nach oben

International Entrepreneurship and Management Journal

Erschienen in:

01.09.2016

Growth of born globals: the role of the entrepreneur’s personal factors and venture capital

verfasst von: Elisa Ughetto

Erschienen in: International Entrepreneurship and Management Journal | Ausgabe 3/2016

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

This paper examines to what extent the human capital of entrepreneurs and the receipt of venture capital (VC) financing affect the growth of born globals (BGs). The study analyzes a sample of 242 BGs resulting from a survey on high-tech start-ups operating in the ICT and electronics sectors, located in different countries throughout the world. A multivariate explorative analysis controlling for the endogenous nature of VC is conducted. The results indicate that the experience of the entrepreneur in having previously established another entrepreneurial firm positively affects the growth of BGs. A negative effect is associated with the presence of heterogeneity in the management team in terms of education background. With regard to the linkage between financial capital and growth, it is found that both VC financing and the number of founders (a proxy for the availability internal capital) positively influence the growth of BGs.

Vorheriger Artikel The moderating role of anticipated affective ambivalence in the formation of entrepreneurial intentions

Nächster Artikel Erratum to: Growth of born globals: the role of the entrepreneur’s personal factors and venture capital

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Nur mit Berechtigung zugänglich

This distinction has been previously applied in studies investigating the impact of human capital characteristics on firms’ performances (see for example Colombo and Grilli 2005; Cooper et al. 1994; Westhead et al. 2001; Williams 2013).

The average number of years of education of entrepreneurs is not found to be a significant predictor of firms’ growth in Colombo and Grilli (2005).

Different measures of heterogeneity of management team’s competences have been proposed, ranging from different education backgrounds, functions endorsed and length of industry experience. Roure and Maidique (1986) consider the number of functions that are filled by founders as a measure of team completeness and find that successful companies have more heterogeneous founding teams. Eisenhardt and Schoonhoven (1990) show that the standard deviation of the years of industry-specific experience of the entrepreneurs is positively correlated to firms’ growth. Colombo and Grilli (2005) provide evidence that the combination of complementary capabilities of founders relating to economic-managerial and scientific-technical education results in superior growth.

Instead, Almus and Nerlinger (1999) do not find a statistically significant impact of prior entrepreneurial or managerial work experience on growth.

Baum and Silverman (2004) and Colombo and Grilli (2010) try to disentangle the two different effects by examining whether the same start-up characteristics that attract VC financing are also associated with start-up performance. A convergence between these effects is interpreted in the light of a “scout” function, while a divergence is interpreted in the light of a “coach” function.

CrunchBase (run by TechCrunch) is a popular Internet blog on technology start-ups and investors. The dataset is quite new and it shows a good potential for research purposes. The dataset can be found and downloaded at http://www.crunchbase.com/.

The Appendix reports the results of an alternative methodology, the structural equation modeling (SEM), which allows to see both the direction and effect of the explanatory variables, as well as the mediating role of VC, on the dependent variable. Overall, the results of the SEM analysis are in line with OLS results. SEM estimates show an additional significant effect displayed by the variable AGE.

Almus, M., & Nerlinger, E. (1999). Growth of new technology-based firms: which factors matter? Small Business Economics, 13, 141–154.CrossRef

Andersson, S. (2000). The internationalization of the firm from an entrepreneurial perspective. International Studies of Management & Organization, 30(1), 63–93.CrossRef

Armstron, J. S., & Overton, T. S. (1977). Estimating non-response bias in mail surveys. Journal of Marketing Research, 14(3), 396–402.CrossRef

Autio, E., Sapienza, H. J., & Almeida, J. G. (2000). Effects of age at entry, knowledge intensity, and imitability on international growth. The Academy of Management Journal, 43(5), 909–924.CrossRef

Bagozzi, R. P., & Yi, Y. (2012). Specification, evaluation, and interpretation of structural equation models. Journal of the Academy of Marketing Science, 40(1), 8–34.CrossRef

Barney, J. A. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.CrossRef

Baronchelli, G., & Cassia, F. (2014). Exploring the antecedents of born-global companies’ international development. International Entrepreneurship and Management Journal, 10(1), 67–79.CrossRef

Baum, J., & Silverman, B. (2004). Picking winners or building them? Alliance, intellectual, and human capital as selection criteria in venture financing and performance of biotechnology startups. Journal of Business Venturing, 19, 411–436.CrossRef

Becker, G. S. (1975). Human Capital. Chicago: Chicago Univ. Press.

Bloodgood, J. M., Sapienza, H. J., & Almeida, J. G. (1996). The internationalization of new high potential U.S. ventures: antecedents and outcomes. Entrepreneurship: Theory and Practice, 20(4), 61–76.

Bosma, N., Van Praag, M., Thurik, R., & de Wit, G. (2004). The value of human capital and social capital investments for the business performance of start-ups. Small Business Economics, 23, 227–236.CrossRef

Cannone, G., & Ughetto, E. (2014). Born globals: a cross-country survey on high-tech start-ups. International Business Review, 23(1), 272–283.CrossRef

Cannone, G., & Ughetto, E. (2015). Internationalization flows of high-tech start-ups: a gravity model. European Business Review, 27(1), 60–79.CrossRef

Carpenter, R., & Petersen, B. (2002). Capital market imperfections, high-tech investment and new equity financing. Economic Journal, 112, 54–72.CrossRef

Chandler, G. N., & Jansen, E. (1992). The entrepreneur’s self-assessed competence and venture performance. Journal of Business Venturing, 7, 223–236.CrossRef

Colombo, M. G., & Grilli, L. (2005). Entrepreneurs’ human capital and the growth of new technology-based firms: a competence-based view. Research Policy, 34, 795–816.CrossRef

Colombo, M. G., & Grilli, L. (2010). On growth drivers of high-tech start-ups: exploring the role of entrepreneurs’ human capital and venture capital. Journal of Business Venturing, 25(6), 610–626.CrossRef

Cooper, A. C., & Bruno, A. V. (1977). Success among high-technology firms. Business Horizons, 20, 16–22.CrossRef

Cooper, A. C., Gimeno-Gascon, F. J., & Woo, C. Y. (1994). Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing, 9, 371–395.CrossRef

Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18(3), 301–331.CrossRef

Davila, A., Foster, G., & Gupta, M. (2003). Venture capital financing and the growth of start-up firms. Journal of Business Venturing, 18, 689–708.CrossRef

Eisenhardt, K. M. (2013). Top management teams and the performance of entrepreneurial firms. Small Business Economics, 40, 805–816.CrossRef

Eisenhardt, K. M., & Schoonhoven, C. B. (1990). Organizational growth: linking founding team, strategy, environment and growth among U.S. semiconductor ventures, 1978–1988. Administrative Science Quarterly, 35, 504–529.CrossRef

Engel, D., & Keilbach, M. (2007). Firm level implication of early stage venture capital investment: an empirical investigation. Journal of Empirical Finance, 14, 150–167.CrossRef

Feeser, H. R., & Willard, G. E. (1990). Founding strategy and performance: a comparison of high and low growth high tech firms. Strategic Management Journal, 11, 87–98.CrossRef

Gabrielsson, M., Kirpalani, V. H., Dimitratos, P., Solberg, C. A., & Zucchella, A. (2008). Born globals: propositions to help advance the theory. International Business Review, 17, 385–401.CrossRef

Gimeno, J., Folta, T. B., Cooper, A. C., & Woo, C. Y. (1997). Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly, 42, 750–783.CrossRef

Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: the organization as a reflection of its top managers. Academy of Management Review, 9(2), 193–206.

Heckman, J. (1990). Varieties of selection bias. American Economic Review, 80, 313–318.

Hellmann, T., & Puri, M. (2002). Venture capital and the professionalization of start-up firms: empirical evidence. Journal of Finance, 57(1), 169–197.CrossRef

Herrmann, P., & Datta, D. (2002). CEO successor characteristics and the choice of foreign entry mode: an empirical study. Journal of International Business Studies, 33(3), 551–569.CrossRef

Hoyle, R. H. (1995). Structural equation modeling. Concepts, issues and applications. California: Sage Pulications Inc.

Jantunen, A., Nummela, N., Puumalainen, K., & Saarenketo, S. (2008). Strategic orientations of born globals. Do they really matter? Journal of World Business, 43, 158–170.CrossRef

Javalgi, R. G., & Todd, P. R. (2011). Entrepreneurial orientation, management commitment, and human capital: the internationalization of SMEs in India. Journal of Business Research, 64, 1004–1010.CrossRef

Johanson, J., & Vahlne, J. E. (1977). The internationalization process of the firm. A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1), 23–32.CrossRef

Johnson, J. E. (2004). Factors influencing the early internationalization of high-technology start-ups: US and UK evidence. Journal of International Entrepreneurship, 2, 139–154.CrossRef

Jones, M. V., Coviello, N., & Tang, Y. K. (2011). International Entrepreneurship research (1989–2009): a domain ontology and thematic analysis. Journal of Business Venturing, 26, 632–659.CrossRef

Kiss, A. N., Danis, W. M., & Cavusgil, S. T. (2012). International entrepreneurship research in emerging economies: a critical review and research agenda. Journal of Business Venturing, 27, 266–290.CrossRef

Knight, G., & Cavusgil, S. T. (1996). The born global firm: a challenge to traditional internationalization theory. Advances in International Marketing, 8, 11–26.

Kungwansupaphan, C., & Siengthai, S. (2014). Exploring entrepreneurs’ human capital components and effects on learning orientation in early internationalizing firms. International Entrepreneurship and Management Journal, 10(3), 561–587.CrossRef

Loane, S., Bell, J., & McNaughton, R. (2007). A cross-national study on the impact of management teams on the rapid internationalization of small firms. Journal of World Business, 42(4), 489–504.CrossRef

Madsen, T. K., & Servais, P. (1997). The internationalization of born globals: an evolutionary process? International Business Review, 6(6), 561–583.CrossRef

Moen, O. (2002). The born globals: a new generation of small European exporters. International Marketing Review, 19(2), 156–175.CrossRef

Oviatt, B. M., & McDougall, P. P. (1997). Challenges for internationalization process theory: the case of international new ventures. Management International Review, 37(2), 85–99.

Oviatt, B. M., & McDougall, P. P. (2005). Defining international entrepreneurship and modeling the speed of internationalization. Entrepreneurship: Theory and Practice, 29(5), 537–553.

Pennings, J. M., Lee, K., & Witteloostuijn, A. (1998). Human capital, social capital, and firm dissolution. The Academy of Management Journal, 41(4), 425–440.CrossRef

Preece, S. B., Miles, G., & Baetz, M. C. (1998). Explaining the international intensity and global diversity of early stage technology based firms. Journal of Business Venturing, 14, 259–281.CrossRef

Roure, J. B., & Maidique, M. A. (1986). Linking prefunding factors and high-technology venture success: an exploratory study. Journal of Business Venturing, 1, 295–306.CrossRef

Ruzzier, M., Antoncic, B., Hisrich, R. D., & Konecnik, M. (2007). Human capital and SME internationalization: a structural equation modeling study. Canadian Journal of Administrative Sciences, 24, 15–29.CrossRef

Sapienza, H. J. (1992). When do venture capitalists add value? Journal of Business Venturing, 7, 9–27.CrossRef

Siegel, R., Siegel, E., & Macmillan, I. C. (1993). Characteristics distinguishing high growth ventures. Journal of Business Venturing, 8, 169–180.CrossRef

Sleuwaegen, L., & Onkelinx, J. (2014). International commitment, post-entry growth and survival of international new ventures. Journal of Business Venturing, 29(1), 106–120.CrossRef

Stuart, R. W., & Abetti, P. A. (1990). Impact of entrepreneurial and management experience on early performance. Journal of Business Venturing, 5, 151–162.CrossRef

Vella, F., & Verbeek, M. (1999). Estimating and interpreting models with endogenous treatment effects. Journal of Business and Economic Statistics, 17, 473–478.

Westhead, P., & Cowling, M. (1995). Employment change in independent owner-managed high technology firms in Great Britain. Small Business Economics, 7, 111–140.CrossRef

Westhead, P., Wright, M., & Ucbasaran, D. (2001). The internationalization of new and small firms: a resource-based view. Journal of Business Venturing, 16, 333–358.CrossRef

Wiersema, M. F., & Bantel, K. A. (1992). Top management team demography and corporate strategic change. The Academy of Management Journal, 35(1), 91–121.CrossRef

Williams, D. R. (2013). Human and financial capital as determinants of biopharmaceutical IPO de-listings. Journal of Business Research, 66, 2612–2618.CrossRef

Zucchella, A., Palamara, G., & Denicolai, S. (2007). The drivers of the early internationalization of the firm. Journal of World Business, 42(3), 268–280.CrossRef

Titel: Growth of born globals: the role of the entrepreneur’s personal factors and venture capital
verfasst von: Elisa Ughetto
Publikationsdatum: 01.09.2016
Verlag: Springer US
Erschienen in: International Entrepreneurship and Management Journal / Ausgabe 3/2016
Print ISSN: 1554-7191
Elektronische ISSN: 1555-1938
DOI: https://doi.org/10.1007/s11365-015-0368-1

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 3/2016

Evaluating the impact of prior experience in entrepreneurial intention

The moderating role of anticipated affective ambivalence in the formation of entrepreneurial intentions

What entrepreneurs discover when creating opportunities? Insights from Skype and YouTube ventures

Erratum to: Growth of born globals: the role of the entrepreneur’s personal factors and venture capital

The effects of psychological capital and risk tolerance on service workers’ internal motivation for firm performance and entrepreneurship

Best fit, best practice, or stuck in the middle? The impact of unit ownership on unit HR performance in franchise systems

Premium Partner