Understanding global flows of venture capital: Human networks as the "carrier wave" of globalization

Ravi Madhavan; Akie Iriyama

doi:10.1057/jibs.2009.6

Understanding global flows of venture capital: Human networks as the "carrier wave" of globalization

Ravi Madhavan^*, Akie Iriyama

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

83 Citations (Scopus)

Abstract

Industry participants and observers view venture capital as fundamentally a local business. However, recent data show an increasing share of US venture capital investments flowing overseas. We suggest that cross-border venture capital flows are associated with the formation of transnational technical communities (TTCs), groups of immigrants active in both home- and host-country technical networks. Our results highlight the role of human networks as a mechanism of industry globalization, and support the view that TTCs are emerging economic actors in their own right.

Original language	English
Pages (from-to)	1241-1259
Number of pages	19
Journal	Journal of International Business Studies
Volume	40
Issue number	8
DOIs	https://doi.org/10.1057/jibs.2009.6
Publication status	Published - 2009 Oct
Externally published	Yes

Keywords

Cross-border capital flows
Globalization
Immigration
Networks
Transnational technical communities
Venture capital

ASJC Scopus subject areas

Business and International Management
Business, Management and Accounting(all)
Economics and Econometrics
Strategy and Management
Management of Technology and Innovation

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1057/jibs.2009.6

Cite this

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title = "Understanding global flows of venture capital: Human networks as the {"}carrier wave{"} of globalization",

abstract = "Industry participants and observers view venture capital as fundamentally a local business. However, recent data show an increasing share of US venture capital investments flowing overseas. We suggest that cross-border venture capital flows are associated with the formation of transnational technical communities (TTCs), groups of immigrants active in both home- and host-country technical networks. Our results highlight the role of human networks as a mechanism of industry globalization, and support the view that TTCs are emerging economic actors in their own right.",

keywords = "Cross-border capital flows, Globalization, Immigration, Networks, Transnational technical communities, Venture capital",

author = "Ravi Madhavan and Akie Iriyama",

note = "Funding Information: We are grateful to the International Business Center at the University of Pittsburgh, the Illinois CIBER, and the University of Illinois Campus Research Board for financial support. We thank Franky Supriyadi for his assistance with supplemental data collection. Joseph Cheng, Nosh Contractor, Kevin Kim, Yong Li, Steve Michael, Joseph Mahoney, Ajay Mehra, and seminar participants at the University of Pittsburgh, University of Kentucky and the State University of New York, Buffalo, provided helpful comments at various stages of the study. We also thank three anonymous JIBS reviewers and Departmental Editor Tom Murtha for helping us to refine the paper.",

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AU - Iriyama, Akie

N1 - Funding Information: We are grateful to the International Business Center at the University of Pittsburgh, the Illinois CIBER, and the University of Illinois Campus Research Board for financial support. We thank Franky Supriyadi for his assistance with supplemental data collection. Joseph Cheng, Nosh Contractor, Kevin Kim, Yong Li, Steve Michael, Joseph Mahoney, Ajay Mehra, and seminar participants at the University of Pittsburgh, University of Kentucky and the State University of New York, Buffalo, provided helpful comments at various stages of the study. We also thank three anonymous JIBS reviewers and Departmental Editor Tom Murtha for helping us to refine the paper.

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N2 - Industry participants and observers view venture capital as fundamentally a local business. However, recent data show an increasing share of US venture capital investments flowing overseas. We suggest that cross-border venture capital flows are associated with the formation of transnational technical communities (TTCs), groups of immigrants active in both home- and host-country technical networks. Our results highlight the role of human networks as a mechanism of industry globalization, and support the view that TTCs are emerging economic actors in their own right.

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KW - Cross-border capital flows

KW - Globalization

KW - Immigration

KW - Networks

KW - Transnational technical communities

KW - Venture capital

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Understanding global flows of venture capital: Human networks as the "carrier wave" of globalization

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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