Entrepreneurs’ resource background, innovation, philanthropy and the exit of external Investment in Private Ventures in China

Jintong Tang (), Zhi Tang (), Renhong Zhu () and Xinchun Li ()
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Jintong Tang: Saint Louis University
Zhi Tang: Rochester Institute of Technology
Renhong Zhu: Sun Yat-sen University
Xinchun Li: Sun Yat-sen University

Asia Pacific Journal of Management, 2021, vol. 38, issue 2, No 3, 467-489

Abstract: Abstract Retaining external investment is an important task for private firms. However, the entrepreneurial financing literature has primarily focused on how to attract, instead of retain, start-up funding. Integrating social embeddedness, signaling, and strategic choice theories, we propose that entrepreneurs’ resource background, philanthropic, and innovative activities affect the exit speed of external investment for Chinese private ventures. In particular, we propose that external investment exits entrepreneurs with deprived resources faster than those more resourceful entrepreneurs. Yet, external investment stays longer when less resourceful entrepreneurs commit to innovative or philanthropic activities.

Keywords: Innovation; Philanthropy; External investment exit; Resource background; Signaling theory; Social embeddedness theory; China (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s10490-019-09674-0

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