The role of venture capital in startups has been the hot topic that the community pays attention to. But few studies have tried to answer the questions that whether venture capital impacts the strategic choices of startups, how the impacts happen, and what kinds of impacts there are. Based on a systematic literature review, this paper firstly summarizes two theoretical hypotheses of the influences of venture capital on strategic choices of startups. Then, from the perspectives of resource-based view, agent theory, and signal transmission theory, this paper analyzes three mechanisms about how venture capital impacts strategic choices of startups, that is, value-added service provision mechanism, supervision & management mechanism, and signal transmission mechanism. Finally, based on the analysis of current empirical studies, this paper builds a theoretical framework about how venture capital influences strategic choices of startups, and makes prospects for future research directions. It has important significance to the advancement of the research of the interaction between venture capital and startups and the expansion of strategic management research.
Does Venture Capital Affect Strategic Choices of Startups? Literature Review and Theoretical Framework
Foreign Economics & Management Vol. 39, Issue 02, pp. 36 - 46,59 (2017) DOI:10.16538/j.cnki.fem.2017.02.003
Cite this article
Dong Jing, Wang Li. Does Venture Capital Affect Strategic Choices of Startups? Literature Review and Theoretical Framework[J]. Foreign Economics & Management, 2017, 39(2): 36–46.
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