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Unraveling the mechanisms of reputation and alliance formation: A study of venture capital syndication in China
Author(s) -
Gu Qian,
Lu Xiaohui
Publication year - 2014
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2117
Subject(s) - web syndication , alliance , reputation , venture capital , business , china , extant taxon , resource (disambiguation) , industrial organization , empirical research , marketing , finance , computer network , social science , philosophy , epistemology , evolutionary biology , sociology , political science , computer science , law , biology
Extant research shows that resources are significant to a firm's choice of alliance formation. We focus on an important form of intangible resource—firm reputation—and examine how it affects a firm's propensity to form alliances. We propose an inverted U‐shaped relationship between a firm's reputation and its likelihood of alliance formation, resulting from the opposing mechanisms of opportunity and need. We also examine how this relationship may vary across two contingencies: (1) foreign and domestic firms; and (2) different levels of institutional development. Empirical analyses of China's venture capital ( VC ) industry provide support for our hypotheses . Copyright © 2013 John Wiley & Sons, Ltd.