Past performance and corporate venture capital:The moderating effect of top management&rsquo;s political networking

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Science Research Management ›› 2012, Vol. 33 ›› Issue (1) : 138-146.

Past performance and corporate venture capital:The moderating effect of top management’s political networking

Dai Weiqi¹, Wei Jiang², Yu Chunguo²

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Abstract

Building upon the prospect theory, the relationship between firm’s past performance and corporate Venture Capital(VC) is examined. Following the threat-rigidity theory, the moderating effect of top management’s political networking-a distinct and critical type of social network in the context of transition economy-on the past performance-VC link is explored. The results show that (1) past performance has negative effects on VC; (2) top management’s political networking positively moderates the relationship between past performance and VC. The findings indicate that (1) single theoretical perspective is insufficient to fully explicate the antecedents of VC; (2) by integrating the prospect theory with threat-rigidity theory, VC phenomenon could be further understood. The boundary of the prospect theory is explored and extended to the organization-level research.

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past performance / corporate VC / top management’s political networking

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Dai Weiqi, Wei Jiang, Yu Chunguo. Past performance and corporate venture capital:The moderating effect of top management’s political networking[J]. Science Research Management. 2012, 33(1): 138-146

References

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