Networking Ability and the Financial Performance of New Ventures: Moderating Effects of Venture Size, Institutional Environment, and Their Interaction

Authors

  • Stefan Sigmund,

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    • Address correspondence to: Stefan Sigmund, Corporate Development and Organization, University of Cologne, Albertus-Magnus-Platz, Cologne 50923, Germany. E-mail: sigmund@wiso.uni-koeln.de.

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    • Stefan Sigmund is research and teaching assistant in the Department of Business Administration, Corporate Development and Organization at the University of Cologne.
  • Thorsten Semrau,

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    • Thorsten Semrau is assistant professor of business administration in Corporate Development and Organization at the University of Cologne.
  • Douglas Wegner

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    • Douglas Wegner is assistant professor of business administration in Strategic Management and International Relations at the University of Santa Cruz do Sul.

  • We would like to thank associate editor Dr. Howard Van Auken for his editorial guidance and our anonymous reviewers for their insightful suggestions, which helped to considerably improve the quality of this manuscript.

Abstract

Building on prior research, this study provides insights on the complex interaction between individual, organizational, and environmental factors in the field of new venture success. Specifically, we develop and test hypotheses on how venture size, institutional context, and their interaction moderate the effect of entrepreneurs' networking ability on the financial performance of new ventures. Based on a sample of 283 new ventures in Germany and Brazil—two countries that differ significantly in terms of their institutional frameworks—our analyses reveal moderating effects of venture size and the interaction between venture size and institutional environment.

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