Research on the Selection of State-owned Syndication Partner by Cross-border VC from the Perspective of Culture

Abstract

Abstract: Many studies have shown that syndication is an important means for cross-border VC to overcome the disadvantage of outsiders. However, little attention has been paid to the types of syndication partner that cross-border VC will choose. Based on the cultural perspective, this paper takes all cross-border VC joint investment events in China from 2000 to 2017 as samples, and through theoretical deduction and empirical test, analyzes the impact of regional culture on cross-border VC's choice of state-owned VC syndicate. The empirical results show that the cultural dimensions of in-group collectivism, power distance and humane orientation in China significantly increase the proportion of state-owned VC in cross-border VC joint investment, and also significantly increase the political level of stateowned VC in cross-border VC joint investment. However, when the level of regional marketization is relatively high, the role of traditional cultural characteristics in cross-border VC's selection of state-owned VC joint investment weakens.

Key words: cross-border VC, syndication, culture, state-owned VC

Wang Han, Liu Huixia, Dong Jianwei. Research on the Selection of State-owned Syndication Partner by Cross-border VC from the Perspective of Culture[J]. Management Review, 2022, 34(7): 17-32.

References

[1] Schertler A., Tykvová T.Venture Capital and Internationalization[J].International Business Review, 2011,20(4):423-439
[2] Dai N., Jo H., Kassicieh S.Cross-Border Venture Capital Investments in Asia:Selection and Exit Performance[J].Journal of Business Venturing, 2012,27(6):666-684
[3] Bengtsson O., Ravid S.A.The Geography of Venture Capital Contracts[R].SSRN Working Paper, 2009
[4] Bottazzi L., Da Rin M., Hellmann T.What Is the Role of Legal Systems in Financial Intermediation?Theory and Evidence[J].Journal of Financial Intermediation, 2009,18(4):559-598
[5] Lindsey L.A., Balcarcel A.L., Hertzel M.G.Contracting Frictions and Cross-Border Capital Flows:Evidence from Venture Capital[R].SSRN Working Paper, 2009
[6] Pruthi S., Wright M., Meyer K.E.Staffing Venture Capital Firms'international Operations[J].The International Journal of Human Resource Management, 2009,20(1):186-205
[7] Chen H., Gompers P., Kovner A., et al.Buy Local?The Geography of Venture Capital[J].Journal of Urban Economics, 2010, 67(1):90-102
[8] De Prijcker S., Manigart S., Wright M., et al.The Influence of Experiential, Inherited and External Knowledge on the Internationalization of Venture Capital Firms[J].International Business Review, 2012,21(5):929-940
[9] Devigne D., Manigart S., Wright M.Escalation of Commitment in Venture Capital Decision Making:Differentiating between Domestic and International Investors[J].Journal of Business Venturing, 2016,31(3):253-271
[10] Mäkelä M.M., Maula M.V.J.Attracting Cross-Border Venture Capital:The Role of a Local Investor[J].Entrepreneurship and Regional Development, 2008,20(3):237-257
[11] Devigne D., Vanacker T., Manigart S., et al.The Role of Domestic and Cross-Border Venture Capital Investors in the Growth of Portfolio Companies[J].Small Business Economics, 2013,40(3):553-573
[12] Nahata R., Hazarika S., Tandon K.Success in Global Venture Capital Investing:Do Institutional and Cultural Differences Matter?[J].Journal of Financial and Quantitative Analysis, 2014,49(4):1039-1070
[13] Huang X., Kenney M., Patton D.Responding to Uncertainty:Syndication Partner Choice by Foreign Venture Capital Firms in China[J].Venture Capital, 2015,17(3):215-235
[14] Chemmanur T.J., Hull T.J., Krishnan K.Do Local and International Venture Capitalists Play Well Together?The Complementarity of Local and International Venture Capitalists[J].Journal of Business Venturing, 2016,31(5):573-594
[15] 李军,王玉荣.制度学习、网络中心性和市场进入——跨国风险资本在华投资的实证研究[J].国际贸易问题, 2013,(1):131-145
[16] Schertler A., Tykvová T.What Lures Cross-Border Venture Capital Inflows?[J].Journal of International Money and Finance, 2012,31(6):1777-1799
[17] Sarala R.M., Vaara E.Cultural Differences, Convergence, and Crossvergence as Explanations of Knowledge Transfer in International Acquisitions[J].Journal of International Business Studies, 2010,41(8):1365-1390
[18] Stephan U., Uhlaner L.M.Performance-Based vs Socially Supportive Culture:A Cross-National Study of Descriptive Norms and Entrepreneurship[J].Journal of International Business Studies, 2010,41(8):1347-1364
[19] Tung R.L., Verbeke A.Beyond Hofstede and GLOBE:Improving the Quality of Cross-Cultural Research[J].Journal of International Business Studies, 2010,41(8):1259-1274
[20] Li K., Griffin D., Yue H., et al.How does Culture Influence Corporate Risk-Taking?[J].Journal of Corporate Finance, 2013, 23(23):1-22
[21] Chen Y., Dou P.Y., Rhee S.G., et al.National Culture and Corporate Cash Holdings around the World[J].Journal of Banking&Finance, 2015,50(1):1-18
[22] Lievenbrück M., Schmid T.Why do Firms (Not) Hedge?——Novel Evidence on Cultural Influence[J].Journal of Corporate Finance, 2014,25:92-106
[23] Díez-Esteban J.M., Farinha J.B., García-Gómez C.D.How does National Culture Affect Corporate Risk-Taking?[J].Eurasian Business Review, 2019,9(1):49-68
[24] An Z., Chen Z., Li D., et al.Individualism and Stock Price Crash Risk[J].Journal of International Business Studies, 2018,49(9):1208-1236
[25] Meuleman M., Wright M.Determinants of Cross-Border Syndication:Cultural Barriers, Legal Context, and Learning[R].SSRN Working Paper, 2008
[26] Dai N., Nahata R.Cultural Differences and Cross-Border Venture Capital Syndication[J].Journal of International Business Studies, 2016,47(2):140-169
[27] 李璐男,李志萍.文化距离、制度距离对跨境风险投资进入模式的影响[J].软科学, 2017,31(3):16-19
[28] 赵向阳,李海,孙川.中国区域文化地图:"大一统"抑或"多元化"?[J].管理世界, 2015,(2):101-119
[29] Tung R.L.The Cross-Cultural Research Imperative:The Need to Balance Cross-National and Intra-National Diversity[J].Journal of International Business Studies, 2008,39(1):41-46
[30] Lerner J.The Government as Venture Capitalist:The Long-Run Impact of the SBIR Program[J].Journal of Business, 1999,72(3):285-318
[31] Anderson H.D., Chi J., Wang Q.S.Political Ties and VC Exits:Evidence from China[J].China Economic Review, 2017,(44):48-66
[32] 党兴华,施国平,仵永恒.政治关联与风险资本筹集[J].预测, 2015,34(6):45-50
[33] 余琰,罗炜,李怡宗,等.国有风险投资的投资行为和投资成效[J].经济研究, 2014,49(2):32-46
[34] Wang L., Wang S.Economic Freedom and Cross-Border Venture Capital Performance[J].Journal of Empirical Finance, 2012, 19(1):26-50
[35] Chahine S., Saade S., Goergen M., et al.Foreign Business Activities, Foreignness of the VC Syndicate, and IPO Value[J].Entrepreneurship Theory and Practice, 2019,43(5):947-973
[36] Bottazzi L., Da Rin M., Hellmann T.The Importance of Trust for Investment:Evidence from Venture Capital[J].The Review of Financial Studies, 2016,29(9):2283-2318
[37] Hoskisson R.E., Eden L., Lau C.M., et al.Strategy in Emerging Economies[J].Academy of Management Journal, 2000,43(3):249-267
[38] Li J.J., Poppo L., Zhou K.Z.Do Managerial Ties in China Always Produce Value?Competition, Uncertainty, and Domestic vs.Foreign Firms[J].Strategic Management Journal, 2008,29(4):383-400
[39] Caves R.E.International Corporations:The Industrial Economics of Foreign Investment[J].Economica, 1971,38(149):1-27
[40] Henisz W.J., Williamson O.E.Comparative Economic Organization-within and between Countries[J].Business and Politics, 1999,1(3):261-277
[41] Peng M.W., Luo Y.Managerial Ties and Firm Performance in a Transition Economy:The Nature of a Micro-Macro Link[J].Academy of Management Journal, 2000,43(3):486-501
[42] Li J.J.The Formation of Managerial Networks of Foreign Firms in China:The Effects of Strategic Orientations[J].Asia Pacific Journal of Management, 2005,22(4):423-443
[43] Shane S., Venkataraman S., MacMillan I.Cultural Differences in Innovation Championing Strategies[J].Journal of Management, 1995,21(5):931-952
[44] Zhao X., Frese M., Giardini A.Business Owners'Network Size and Business Growth in China:The Role of Comprehensive Social Competency[J].Entrepreneurship and Regional Development, 2010,22(7-8):675-705
[45] 赵向阳,李海,Andreas R.创业活动的国家(地区)差异:文化与国家(地区)经济发展水平的交互作用[J].管理世界, 2012,(8):78-90
[46] Kirzner I.M.Entrepreneurial Discovery and the Competitive Market Process:An Austrian Approach[J].Journal of Economic Literature, 1997,35(1):60-85
[47] Seleim A., Bontis N.The Relationship between Culture and Corruption:A Cross-National Study[J].Journal of Intellectual Capital, 2009,10(1):165-184
[48] Djankov S., Murrell P.Enterprise Restructuring in Transition:A Quantitative Survey[J].Journal of Economic Literature, 2002, 40(3):739-792
[49] 张建君,张志学.中国民营企业家的政治战略[J].管理世界, 2005,(7):94-105
[50] Bruton G.D., Ahlstrom D.An Institutional View of China's Venture Capital Industry:Explaining the Differences between China and the West[J].Journal of Business Venturing, 2003,18(2):233-259
[51] Groh A.P., Liechtenstein H.V., Lieser K.The European Venture Capital and Private Equity Country Attractiveness Indices[J].Journal of Corporate Finance, 2010,16(2):205-224
[52] Guler I., Guillén M.F.Institutions and the Internationalization of US Venture Capital Firms[J].Journal of International Business Studies, 2010,41(2):185-205
[53] 樊纲,王小鲁,朱恒鹏.中国市场化指数——各地区市场化相对进程2011年报告[M].北京:经济科学出版社, 2011
[54] 宋渊洋,刘勰.中国各地区制度环境测量的最新进展与研究展望[J].管理评论, 2015,27(2):3-12
[55] 董静,汪立,吴友.地理距离与风险投资策略选择——兼论市场环境与机构特质的调节作用[J].南开管理评论, 2017,20(2):4-16
[56] 李新春,叶文平,朱沆.牢笼的束缚与抗争:地区关系文化与创业企业的关系战略[J].管理世界, 2016,(10):88-102
[57] 李善民,公淑玉,庄明明.文化差异影响CEO的并购决策吗?[J].管理评论, 2019,31(6):144-159
[58] 马连福,王丽丽,张琦.混合所有制的优序选择:市场的逻辑[J].中国工业经济, 2015,(7):5-20
[59] 俞红海,徐龙炳,陈百助.终极控股股东控制权与自由现金流过度投资[J].经济研究, 2010,45(8):103-114
[60] 李延喜,包世泽,高锐,等.薪酬激励、董事会监管与上市公司盈余管理[J].南开管理评论, 2007,(6):55-61
[61] 王小鲁,樊纲,余静文.中国分省份市场化指数报告(2016)[M].北京:社会科学文献出版社, 2017
[62] Meuleman M., Wright M.Cross-Border Private Equity Syndication:Institutional Context and Learning[J].Journal of Business Venturing, 2011,26(1):35-48
[63] Liu Y., Maula M.Local Partnering in Foreign Ventures:Uncertainty, Experiential Learning, and Syndication in Cross-Border Venture Capital Investments[J].Academy of Management Journal, 2016,59(4):1407-1429
[64] Hain D., Johan S., Wang D.Determinants of Cross-Border Venture Capital Investments in Emerging and Developed Economies:The Effects of Relational and Institutional Trust[J].Journal of Business Ethics, 2016,138(4):743-764
[65] Tykvová T., Schertler A.Syndication to Overcome Transaction Costs of Cross-Border Investments?Evidence from a Worldwide Private Equity Deals'Dataset[R].SSRN Working Paper, 2008
[66] Tian X.The Role of Venture Capital Syndication in Value Creation for Entrepreneurial Firms[J].Review of Finance, 2012,16(1):245-283
[67] Cumming D., Dai N.Local Bias in Venture Capital Investments[J].Journal of Empirical Finance, 2010,17(3):362-380
[68] Kogut B., Singh H.The Effect of National Culture on the Choice of Entry Mode[J].Journal of International Business Studies, 1988,19(3):411-432
[69] Meuleman M., Jääskeläinen M., Maula M.V.J., et al.Venturing into the Unknown with Strangers:Substitutes of Relational Embeddedness in Cross-Border Partner Selection in Venture Capital Syndicates[J].Journal of Business Venturing, 2017,32(2):131-144
[70] Luo J.D., Rong K., Yang K., et al.Syndication Through Social Embeddedness:A Comparison of Foreign, Private and StateOwned Venture Capital (VC) Firms[J].Asia Pacific Journal of Management, 2019,36(2):499-527
[71] Wright M., Lockett A.The Structure and Management of Alliances:Syndication in the Venture Capital Industry[J].Journal of Management Studies, 2003,40(8):2073-2102
[72] 叶文平,杨学儒,朱沆.创业活动影响幸福感吗——基于国家文化与制度环境的比较研究[J].南开管理评论, 2018,21(4):4-14