Study On The Venture Capital Firm's Performance Based On Interactions Between Network Position And Network Capability

In the development of China's venture capital industry,it has appeared the trend of cooperation and coordination,resources integration,and mutual improvement.Mainly embodied in,firstly,China's venture capital presents the characteristics of clustering in geographic space,no matter venture capital firms,management capital scale and ventures,and is significant to focus on a few developed cities.Secondly,the number and scope of syndicate investment has obvious regional differences.Existing researches show that Venture Capital Firm's significant network features will affect its investment performance,and network position and network capability are two of significant network features.Scholars at home and abroad,however,has a lot of related researches about network position and network capability at innovation network field,but it's rare to study network position,network capability and their interaction at venture capital network field.Therefore it is essential to combination network features of venture capital and to study the interactive effects of venture capital firms' network position and network capability on investment performance.Specifically,this paper analysis the venture capital firm's performance based on interactions between network position and network capability using the social network analysis.This paper determines defines and types of network position and network capability.Network position is divided into centrality and structure hole,and network capability is divided into network resources acquisition capability and network resources utilization capability.O n this basis,this paper further analysis four interactive effects of centrality-acquisition capability,structural hole-acquisition capability,the centrality-utilization capability and structure hole-utilization capability on investment performance,and put forward the research hypotheses based on the theoretical analysis.Subsequently,I gather data from CVSource Database for empirical tests.I use the degree centrality,the betweenness centrality,partner range and diversified investment experience to measure venture capital firm's network centrality,structural holes network resources acquisition capability and network resources utilization capability.I also measure the investment performance from two aspects,IPO exit way and successful exit.The empirical results show that,the interaction of venture capital firm's acquisition capability and central position is negatively related to the investment performance.The interaction of venture capital firm's acquisition capability and structure hole is positively related to the investment performance.The interaction of venture capital firm's utilization capability and central position is positively related to the investment performance.The interaction of venture capital firm's utilization capability and structure hole has no significant relationship to the investment performance.