Research On The Effect Of Venture Capital On New Ventures Performance: Mediating Effect Of Resource Acquisition

Based on venture capital and entrepreneurial theories, also through analyzing somepractical cases, this paper tries to explore the relationship between venture capital and newventures. During my PhD study period, I have read lots of papers and books about venturecapital. However, most studies discussed how venture capital plays a role in country’seconomic development from macroscopic view. There is less research about how venturecapital influences a firm’s development from microcosmic view, especially how venturecapital influences new ventures’ development.New ventures always face resource constraint not only during the creation period, butalso in the growth period. Therefore, acquiring necessary resources has become a keyprocess for new ventures sustaining growth. Based on Resource Based View, new venture islike a group of resources and the development of new venture can be seen as “resourceconstructing process”. To explore how new ventures execute actions and improve theirperformance could explore from resource acquisition. Through analyzing and summarizingprevious studies on new ventures resources, we find that new ventures especially needhuman resources, financial resources and technical resources. So this paper would study howthe above resources play their roles in new ventures development.This paper tries to explore the relationship between venture capital and new venturesfrom the view of resource acquisition. According to the above analysis, resource acquisitionis the necessary process for new ventures’ survival and development, also the necessarybehaviors for new ventures to get resources. How venture capital influences new venturesacquire resources and improve their performance becomes the key question in this paper.This paper explored the relationship between venture capital and new ventures frommicrocosmic view and tired to find the influencing mechanism of venture capital on newventures’ performance. Due to the important role of resource acquisition in new venturesdevelopment, this paper would explore the relationship between venture capital and new ventures in terms of resource acquisition. This paper put more efforts on how humanresource, financial resource and technique resource play their intermediary roles betweenventure capital and new ventures. The research contents are included in the followings:Firstly, this paper reviewed resource based theory, financial theory, resource dependenttheory, signal theory and agency theory and also summarized the concept, dimensions,characteristics and the relationship between venture capital and new venture. This researchalso discussed the content and characteristics of human resource, financial resource andtechnique resource. This paper analyzed how the above three kinds of resources play theirroles in improving new ventures’ performance and how to acquire the above resources.Finally, this paper reviewed organizational learning theory and how it plays its role in newventures development. It aims to refine the key variables of this research and find theresearch gap.Secondly, this research based on relative theories and practical investigation builds aresearch model including venture capital, organizational learning, human resourceacquisition, financial resource acquisition, technology resource acquisition and performance.Thirdly, this research put forward ten hypothesis, which including the direct relationshipbetween venture capital and new venture performance, the relationship between venturecapital and human resource acquisition, the relationship between venture capital andfinancial resource acquisition, the relationship between human resource and new ventureperformance, the relationship between financial resources and new venture performance, therelationship between technology resource and new venture performance, the moderatingeffect of organizational learning on the relationship between human resource and newventure performance, the moderating effect of organizational learning on the relationshipbetween financial resource and new venture performance, the moderating effect oforganizational learning on the relationship between technology resource and new ventureperformance.Fourthly, this research empirically examined the research model and find that sevenhypotheses get supported and three hypotheses failed. At last this research discussed thefailed hypotheses. Fifthly, the final results of this research are as followings.(1) Venture capital directly influences new ventures performance. This result isimportant for us to understand the relationship between venture capital and new ventures.Empirical results show that venture capital is helpful to new ventures performance.(2) Venture capital could improve new venture performance through resourceacquisition. This result deeply announces the influencing mechanism between venturecapital and new venture performance. Results show that venture capital could improve newventures performance through human resource and financial resources. Results also showthat technology resource may not play the mediating role between venture capital and newventures performance. This still needs more effort to explore the reason.(3) Organizational learning plays moderating role between venture capital and resourceacquisition, which helps to understand the relationship between venture capital and newventures. Result show that organizational learning plays a positive moderating role betweenventure capital and human resources. This shows that in new ventures that withinorganizational learning, venture capital positively influences human resource. Organizationallearning plays a positive moderating role in the relationship between venture capital andfinancial resources. Results show that organizational learning may not have moderatingeffect on the relationship between venture capital and technology resources.