Interorganizational triads for foreign-market entry: Partnerships among Western, bridge-economy, and local VCs in Mainland China

Jing Zhang, Wei Zhang and Andreas Schwab

Journal of Business Venturing, 2024, vol. 39, issue 1

Abstract: This study introduces the novel construct of bridge-economy partners, which can assist Western firms in learning how to collaborate with local partners when entering unfamiliar foreign countries that have substantially different socioeconomic characteristics. We offer initial empirical evidence regarding the relevance of establishing such interorganizational partnership triads among Western, bridge-economy, and local firms for the entries of Western venture capital firms (VCs) into Mainland China between 1997 and 2008. Venture age, regional legal maturity, and the Western VCs' accumulated local experience are identified as relevant contingency factors for the likelihood of adopting this type of collaboration, which involves partners from three different types of economies. We supplement our quantitative analyses with anecdotal qualitative evidence from interviews with VC executives and fund managers.

Keywords: Bridge-economy partners; Interorganizational triads; Foreign-market entry; Organizational learning; Accumulated local experience; Regional legal maturity; Socioeconomic difference; Venture capital; Syndication (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:39:y:2024:i:1:s0883902623000770

DOI: 10.1016/j.jbusvent.2023.106363

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