Hot Markets, Sociocognitive Cues, and New Market Entry in the U.S. Venture Capital Industry

IF 7.8 1区管理学 Q1 BUSINESS

Entrepreneurship Theory and Practice Pub Date : 2023-05-15 DOI:10.1177/10422587231173687

J. Lo, Lei Xu, H. Park

引用次数: 0

Abstract

Investing in sectors that a firm has never invested in before is fundamentally a form of entrepreneurial experimentation and an integral part of wealth creation. We consider how the broader market conditions and sociocognitive cues jointly affect venture capital (VC) firms’ investment decisions in new industries that are unrelated to their past experience. Although VCs are more likely to enter an unrelated new industry when the overall market is hot, they also take sociocognitive cues from their own social contacts and news media. Using the population of U.S. VC investments between 1990 and 2016, we find support for our predictions.

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热点市场、社会认知线索和美国风险投资行业的新市场进入

投资于公司以前从未投资过的领域，从根本上来说是一种创业实验，也是财富创造的一个组成部分。我们考虑了更广泛的市场条件和社会认知线索如何共同影响风险投资(VC)公司在与他们过去经验无关的新行业的投资决策。尽管风投在整体市场火爆的时候更有可能进入一个不相关的新行业，但他们也会从自己的社会关系和新闻媒体中获得社会认知方面的线索。使用1990年至2016年期间美国风险投资的人口，我们发现我们的预测得到了支持。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Entrepreneurship Theory and Practice BUSINESS-

CiteScore

19.00

自引率

12.40%

发文量

期刊介绍： Entrepreneurship Theory and Practice (ETP) is an interdisciplinary scholarly journal dedicated to conceptual and empirical research that advances, tests, or extends theory relating to entrepreneurship in its broadest sense. Article Topics: Topics covered in ETP include, but are not limited to: New Venture Creation, Development, Growth, and Performance Characteristics, Behaviors, and Types of Entrepreneurs Small Business Management Family-Owned Businesses Corporate, Social, and Sustainable Entrepreneurship National and International Studies of Enterprise Creation Research Methods in Entrepreneurship Venture Financing Content: The journal publishes articles that explore these topics through rigorous theoretical development, empirical analysis, and methodological innovation. ETP serves as a platform for advancing our understanding of entrepreneurship and its implications for individuals, organizations, and society.