UNDERSTANDING THE PERFORMANCE OF VENTURE CAPITAL FIRMS FROM THE NETWORK COMMUNITY PERSPECTIVE

Abstract

This thesis calls for a shift in academic focus from connections to communities. From Valley in the United States to science parks in China, vibrant communities of investors and entrepreneurs work together, share ideas and resources, and foster strong bonds. The community perspective provides a unique lens to understand the advantages of inter-organizational relationships by considering the possibility of a network that is close yet not overly exclusive. For VC firms, in particular, tapping into communities can give them an edge over their competitors. Entrepreneurs and founders may significantly enhance their ventures’ performance by leveraging not only direct but also indirect connections within their network communities.