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

Abstract

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.

Key words: past performance, corporate VC, top management’s political networking

CLC Number:

F271

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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