This study explores the signaling and substantive value of high-reputation affiliates to young firms, factors that moderate nature they provide. Specifically, examines extent which venture capitalist (VC) reputation is related first-day valuation post-IPO operating performance firms take public, whether a VC contingent on timing involvement in portfolio firm, firms’ industry-specific experience their geographic proximity. The authors develop time-varying, multi-item composite index use...

We explore the relationship between status and reputation, examining how its dynamics change over time as these two intangible assets coevolve reputation are influenced by participation in highly visible events. Using a sample of more than 400 newly founded venture capital (VC) firms, we find that positively influence each other but has greater effect on status, particularly when firms older. also past current weakens VC age, remains consistent with age. Furthermore, our findings show...

Signaling theorists have paid a great deal of attention to the costs acquiring characteristics that can serve as signals, such endorsements from reputable third parties. However, limited has been devoted penalty associated with providing inaccurate signals and factors exacerbate or attenuate penalties. We examine effect negative feedback loops on venture capital (VC) firms' reputations result failures (delistings) newly public firms they once endorsed. Drawing signaling attribution theories,...

Abstract Manuscript Type Empirical Research Question/Issue This study examines how separation of cash flow and voting rights influences performance firms affiliated with large family business groups. Complementing the dominant view grounded in agency theory, we suggest that has positive influence on firm context Findings/Insights Using data from groups Korea, or Chaebols, between 2003 2010, found is positively associated accounting performance, but not market performance. We also effect...

The network-based model of social contagion has revolved around information on local interactions; its central focus been network topological properties shaping the interactions and, ultimately, outcomes. We extend this approach by introducing global state, or information, into and analyzing how it alters dynamics in six different classes networks: a two-dimensional square lattice, small-world networks, Erd\H{o}s-R\'{e}nyi regular random Holme-Kim Barab\'{a}si-Albert networks. find that...

Purpose The rise of emerging economies in the innovation landscape has often been attributed to positive spillovers capabilities from multinational corporations (MNCs). However, it is less certain that their innovative imported home country function effectively host outset. This study examines performance MNC subsidiaries over time by considering gradual process learning about countries. Design/methodology/approach We employed stochastic frontier analysis measure capabilities, our focal...

Abstract Firms not only combine resources within firm boundaries but tap into, acquire, or consolidate outside boundaries. Alliances and mergers acquisitions (M&A) are distinct vehicles for governing inter-firm resource combinations. Prior studies on the governance choice between them have relied firm- dyad-level attributes to explicate firms make about governance. However, any dyad is a micro-structure embedded in networks that shape flow of information focal dyad. In addition, although...

Family firms take a substantial fraction of economic activities and significantly influence nation’s sustainability. Despite the considerable amount research efforts to determine their performance implications, there is still lack consensus. This study aims address this dissensus in two ways. Theory-wise, we introduce interdependent contingencies that interactively relative strength positive negative effects family involvement: inside chief executive officers (CEOs) business fluctuations....

International joint ventures (IJVs) have long been considered a vibrant venue for innovation, one source of sustainable competitive advantage. Nonetheless, there is paucity research that seeks to understand what determines their innovative performance. We draw attention and examine the control structure IJVs as determinant innovation. Using complementary lenses local embeddedness, liability outsidership, open we argue foreign managerial reduces IJV innovation equity ownership balance between...

This study investigates how group-level benefits and costs are distributed among affiliate firms, by attending to structural differentiation resulting position structure observed in the hierarchical business group equity network. We conceive of each affiliated firm as occupying one three distinct positions regard maintaining operational control over a large number firms: (1) controller, (2) intermediary, (3) receiver. develop theory hypotheses linking with economic performance. In addition,...

Business groups are observed everywhere except in the U.S. and U.K.; their global presence is widely acknowledged. The most successful explanation for this preponderance has been based on relative efficiency of business groups’ internal market vis-à-vis external conventionally underdeveloped or emerging economies. Unsurprisingly, view cannot explain why also prosper advanced economies where thought to no longer match efficient markets. This study addresses contradiction by drawing attention...

We evaluate Schelling's segregation outcomes from the square lattice, regular random networks, and clustered networks by situating them in probability distribution of entire outcome space satisfaction segregation. To do so, we employ Wang-Landau algorithm calculate entropy number states as a function According to results, tends increase with segregation, irrespective network structure. Moreover, occurs almost surely when is maximized, which also algebraically derive confirm on infinite-size...

We explore the relationships between status and reputation, past current examine how these dynamics change over time are influenced by participation in highly visible events. Using a sample of more than 500 newly-founded VC firms, we find that reputation positively influence each other, but has greater effect on status, particularly when firms younger. also weakens as age, relationship remains consistent with age. Participating blockbuster deals positive young older, helps low it high firms....

This study investigates how a firm’s profitability is determined in the context of pyramidal business groups. Bringing to forefront ownership network that serves as governance backbone groups we offer an explanation group burden, novel kind affiliation costs borne by affiliate firms, derived and distributed across firms with close attention position network. Then, develop articulate causal linkage between burden profitability. Specifically, argue occupying central may suffer low inasmuch...