International venture capital research: From cross-country comparisons to crossing borders

Authors

  • Mike Wright,

    Corresponding author
    1. Mike Wright, Sarika Pruthi and Andy Lockett are from the Centre for Management Buy-out Research, Nottingham University Business School, Nottingham NG8 1BB, UK.
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  • Sarika Pruthi,

    1. Mike Wright, Sarika Pruthi and Andy Lockett are from the Centre for Management Buy-out Research, Nottingham University Business School, Nottingham NG8 1BB, UK.
    Search for more papers by this author
  • Andy Lockett

    1. Mike Wright, Sarika Pruthi and Andy Lockett are from the Centre for Management Buy-out Research, Nottingham University Business School, Nottingham NG8 1BB, UK.
    Search for more papers by this author

email address: mike.wright@nottingham.ac.uk

Abstract

Venture capital (VC) has become an international phenomenon, and VC firms are a specific kind of service firm whose characteristics have distinctive implications for international behaviour. There is now a disparate body of research on international aspects of VC across a number of disciplines comprising finance, economics, strategy, entrepreneurship, international business and economic geography. A novel aspect of this paper is that we review and synthesize this disparate literature. A number of research gaps and limitations in the theoretical and methodological approaches involved in previous studies are identified and suggestions made for further research. We show that the vast majority of the literature relates to cross-country comparisons; that is, macro-level comparisons of VC industries across different countries and micro-level comparisons of VC behaviour across countries. From our review of the literature, we argue that an under-researched area concerns the influence of institutional contexts, especially the role of social networks and cultures. Furthermore, our review of the literature indicates that there is a major research gap in relation to work dealing with the crossing of country borders by VC firms. We suggest that resource-based, capabilities, institutional and network theories may be offer insights to further our understanding of the behaviour of VC firms in this area.

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