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CEOs’ appraisals of venture capitalists’ external and internal support: a transaction cost economics perspective

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dc.contributor.author Khanin, Dmitry
dc.contributor.author Turel, Ofir
dc.date.accessioned 2017-01-04T09:30:02Z
dc.date.available 2017-01-04T09:30:02Z
dc.date.issued 2016
dc.identifier.citation Khanin, D., & Turel, O. (2016). CEOs’ appraisals of venture capitalists’ external and internal support: a transaction cost economics perspective. Venture Capital, 18(4), 297-320. DOI: 10.1080/13691066.2016.1225774 ru_RU
dc.identifier.uri http://nur.nu.edu.kz/handle/123456789/2121
dc.description.abstract Previous research has established that, in addition to provision of financing, venture capitalists (VCs) may add value to new ventures via different types of management support. In this paper, we propose that transaction cost economics (TCE) may complement other theoretical frameworks (e.g., agency theory, the resource-based view, knowledge-based theory, and resource dependence perspective) in explaining CEOs’ polar and ambivalent appraisals of the benefits and costs of different types of VC support and the overall value of VC assistance. Following TCE, we approach VC-funded new ventures as hybrids of markets and hierarchies. Hence, we assume that VCs help their portfolio companies both to externalize, or learn to better operate under the market mode of governance, and internalize, or learn to better operate under the hierarchy mode of governance. We propose that VCs use external support to facilitate venture externalization and use internal support to facilitate venture internalization. Based on structural equation modeling (SEM) analysis of data from an online survey that generated 104 valid responses from CEOs of VC-funded new ventures, we establish that CEOs associate VCs’ external support positively with the perceived benefits of VC assistance and negatively with the perceived costs of VC assistance. In contrast, CEOs associate VCs’ internal support positively both with the perceived benefits and costs of VC assistance. We also demonstrate that CEOs’ assessments of the perceived benefits and costs of VC assistance are, respectively, associated positively and negatively with their appraisals of the overall value of VC assistance. Finally, we ascertain that CEO experience is related negatively to CEOs’ appraisals of the overall value of VC assistance. Implications of these findings for research and practice are discussed. ru_RU
dc.language.iso en ru_RU
dc.publisher Venture Capital ru_RU
dc.rights Attribution-NonCommercial-ShareAlike 3.0 United States *
dc.rights.uri http://creativecommons.org/licenses/by-nc-sa/3.0/us/ *
dc.subject externalization ru_RU
dc.subject internalization ru_RU
dc.subject perceived benefits and costs of VC assistance ru_RU
dc.subject transaction cost economics (TCE) ru_RU
dc.subject VCs’ external support ru_RU
dc.subject VCs’ internal support ru_RU
dc.title CEOs’ appraisals of venture capitalists’ external and internal support: a transaction cost economics perspective ru_RU
dc.type Article ru_RU


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