Please use this identifier to cite or link to this item:
Title: Networks vs. market methods in high-tech venture fundraising: The impact of institutional environment
Authors: Zhang, J.
Wong, P.-K. 
Keywords: China
Entrepreneurial finance
Network utilisation
Social network
Venture capital
Issue Date: 2008
Citation: Zhang, J., Wong, P.-K. (2008). Networks vs. market methods in high-tech venture fundraising: The impact of institutional environment. Entrepreneurship and Regional Development 20 (5) : 409-430. ScholarBank@NUS Repository.
Abstract: This study examines how institutional environmental factors, including cultural norm, state regulatory system and venture capital market, influence the high-tech entrepreneur's choice for using network vs. market methods when approaching prospective investors at the early stage of their new venture creation. We collected comparative data through on-site interviews and questionnaire survey with 128 high-tech entrepreneurs in Singapore (a newly industrialised economy) and 250 in Beijing, China (an emerging economy). Our findings suggest that a culture emphasising the value of social obligation, the under-development of the legal/regulatory system and the immaturity of the venture capital market increased the proclivity of entrepreneurs to use network methods. Moreover, entrepreneurs who value networks higher in social obligation than in information transfer are more likely to choose personal ties instead of business ties. This study enhances our understanding of how high-tech entrepreneurs in emerging economies choose between networks and market methods in venture fundraising, and offers suggestions on how public policy makers in these economies can improve the institutional environment of their regions to promote high-tech new venture creation.
Source Title: Entrepreneurship and Regional Development
ISSN: 08985626
DOI: 10.1080/08985620801886406
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.


checked on Apr 15, 2019


checked on Apr 15, 2019

Page view(s)

checked on Apr 21, 2019

Google ScholarTM



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.