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Management Support for Portfolio Companies of Venture Capital Firms: An Empirical Study of German Venture Capital Investments
Author(s) -
Schefczyk Michael,
Gerpott Torsten J.
Publication year - 2001
Publication title -
british journal of management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.407
H-Index - 108
eISSN - 1467-8551
pISSN - 1045-3172
DOI - 10.1111/1467-8551.00194
Subject(s) - german , business , venture capital , portfolio , project portfolio management , panel data , marketing , industrial organization , finance , economics , management , project management , archaeology , history , econometrics
To date, there is a dearth of research on strategic antecedents and consequences of management support activities which German venture capital firms (VCFs) provide for the portfolio companies (PCs) they have invested in. This article provides insights regarding such support practices, their main determinants and impacts on the economic performance of PCs. Hypotheses were derived regarding usage of various types of management support, typical functional foci of management support and the influence of VCF and PC characteristics on management support practice. Hypotheses also cover relationships between type, intensity, and frequency of management support and PC performance. Data for 103 PCs of 12 German VCFs indicate the VCFs can improve the performance of their PCs by providing consultative management support, including active involvement in key functional decisions.