Venture capital as human resource management
Venture capitalists actively participate in attracting, identifying, and suggesting managers for their portfolio companies through internal and external human resource networks. We collect and analyze survey data on the operation of this network. Theoretical and empirical analyses show that cross-se...
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Published in | Journal of economics and business Vol. 60; no. 3; pp. 223 - 255 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
New York
Elsevier Inc
01.05.2008
Elsevier Elsevier Science Ltd |
Series | Journal of Economics and Business |
Subjects | |
Online Access | Get full text |
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Summary: | Venture capitalists actively participate in attracting, identifying, and suggesting managers for their portfolio companies through internal and external human resource networks. We collect and analyze survey data on the operation of this network. Theoretical and empirical analyses show that cross-sectional differences among portfolio companies should be, and are, associated with differences in the intensity with which venture capitalists network. Relevant factors include (1) the value of the information transmitted, (2) the riskiness of the activities of the portfolio companies, (3) the size of the venture capital fund, (4) the degree of difficulty in attracting executives, and (5) the reputation of the venture capitalist for successfully recycling managers. |
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ISSN: | 0148-6195 1879-1735 |
DOI: | 10.1016/j.jeconbus.2007.04.009 |