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Interorganizational Commitment in Syndicated Cross-Border Venture Capital Investments


Markus M. Mäkelä, e-mail:, at the University of Turku, Ylhäistentie 2, FI-24130 Salo, Finland.


Cross-border venture capital has become increasingly common in recent years. Little is known, however, about the antecedents of venture capitalists' commitment to portfolio firms in international settings. We used a multiple case study to build a grounded model of interorganizational commitment in cross-border syndication networks. The model proposes that changes in a venture's prospects influence investors' commitment levels. This relationship is amplified by the remoteness of the investor and is mitigated by the investor's embeddedness in local syndication networks and the relative investment size. The model contributes to the literature on cross-border venture capital and interorganizational commitment in international settings.