Abstract
How the investor–entrepreneur relationship can be better managed and maintained
during the post- financing stage is a central question for investors and entrepreneurs alike,
particularly given the large numbers of failed new venture collaborations. Extant research has
generally underexplored the two- sided nature of this process, which requires both investors
and entrepreneurs to opt in, while treating the norms and values underlying such behaviours
as relatively homogeneous. Drawing on the institutional logics perspective, this study offers an
alternative framework to explain the effective maintaining of the crucial investor–entrepreneur
relationship. This framework suggests that a similarity in the two parties’ institutional logics
will facilitate the formation of aligned motives and shared perceptions between investors and
entrepreneurs, which helps to maintain the relationship. Moreover, the interaction foundation
provided by logic similarity is situated in context, and its activation depends on investment- and
context- specific stimuli that can influence investors and entrepreneurs’ interpretation and choice
of appropriate behaviour. Empirical analyses of 2052 deals made by 1032 investors in 382
portfolio firms during the period 2000–2018 in high- tech industries in China provide general
support for these arguments.
during the post- financing stage is a central question for investors and entrepreneurs alike,
particularly given the large numbers of failed new venture collaborations. Extant research has
generally underexplored the two- sided nature of this process, which requires both investors
and entrepreneurs to opt in, while treating the norms and values underlying such behaviours
as relatively homogeneous. Drawing on the institutional logics perspective, this study offers an
alternative framework to explain the effective maintaining of the crucial investor–entrepreneur
relationship. This framework suggests that a similarity in the two parties’ institutional logics
will facilitate the formation of aligned motives and shared perceptions between investors and
entrepreneurs, which helps to maintain the relationship. Moreover, the interaction foundation
provided by logic similarity is situated in context, and its activation depends on investment- and
context- specific stimuli that can influence investors and entrepreneurs’ interpretation and choice
of appropriate behaviour. Empirical analyses of 2052 deals made by 1032 investors in 382
portfolio firms during the period 2000–2018 in high- tech industries in China provide general
support for these arguments.
| Original language | English |
|---|---|
| Journal | Journal of Management Studies |
| DOIs | |
| Publication status | Published - Mar 2025 |