How Do Venture Capitals Build Up Syndication Ecosystems for Sustainable Development?

Jie Ren, Jar- Der Luo and Ke Rong
Additional contact information
Jie Ren: School of Economics and Management, Tsinghua University, Beijing 100084, China
Jar- Der Luo: School of Social Sciences, Tsinghua University, Beijing 100084, China
Ke Rong: School of Social Sciences, Tsinghua University, Beijing 100084, China

Sustainability, 2020, vol. 12, issue 11, 1-14

Abstract: When the resources of a focal organization are limited, strengthening the capability of sustainable performance by building up an ecosystem through cooperation is a good choice. When venture capital firms invest in sustainable projects, due to the non-rival and non-exclusive features of sustainable projects, venture capital firms that have built up the cooperation ecosystem can invite more investors to join the sustainable projects. This article analyzes what factors venture capital firms take into consideration when building relations to nurture sustainable investment ecosystems. The quadratic assignment procedure (QAP) method is used to explore how Chinese venture capital firms build up the syndication ecosystems. We conclude that very dominant venture capital firms like to cooperate with venture capital firms that have brokerage benefits and proper positions in the cluster to gain sustainable development. This article indicates that venture capital firms can build up syndication ecosystems by obtaining opportunities from indirect ties.

Keywords: venture capital firms; syndication network; ecosystem; sustainable development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/11/4385/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/11/4385/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:11:p:4385-:d:363523

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().