EconPapers    
Economics at your fingertips  
 

Geographic distance, venture capital and technological performance: Evidence from Chinese enterprises

Xiaoli Tian, Gang Kou and Weike Zhang

Technological Forecasting and Social Change, 2020, vol. 158, issue C

Abstract: Venture capital (VC) plays an increasingly important role in advancing the technological innovation of enterprises. A growing body of evidence suggests that VC influences the technological performance of enterprises. No known empirical studies have focused on the relationships between geographic distance and the enterprise's technological performance. This study explores whether and how the geographic distance between VC institutions and enterprises influences the enterprise's technological performance from the perspective of the VC's equity backgrounds (governmental, private, and foreign) and investment strategies (independent and joint). The findings and conclusions are as follows: (1) The geographic distance between VC institutions and enterprises has a significantly nonlinear effect on the technological performance of the VC-backed enterprise, and they are negatively correlated when the geographic distance is less than the specified threshold. (2) The influence of geographic distance on the enterprise's technological performance varies with the VC's equity backgrounds. Geographic distance has a more significant impact on the technological performance of governmental VC- and private VC-backed enterprise compared with foreign VC-backed enterprise. (3) For different investment strategies, geographic distance also has a distinct influence on the enterprise's technological performance. When compared with joint VC, the impact of independent VC on the enterprise's technological performance is more influenced by geographic distance.

Keywords: Geographic distance; Venture capital (VC); Technological performance; Equity background; Investment strategy; Nonlinear effect (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0040162520309811
Full text for ScienceDirect subscribers only

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:eee:tefoso:v:158:y:2020:i:c:s0040162520309811

DOI: 10.1016/j.techfore.2020.120155

Access Statistics for this article

Technological Forecasting and Social Change is currently edited by Fred Phillips

More articles in Technological Forecasting and Social Change from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-10-17
Handle: RePEc:eee:tefoso:v:158:y:2020:i:c:s0040162520309811