| To address a ubiquitous phenomenon in the venture area—why certain ventures persistently outperform others, but some of them do not—this research pursued to answer a specific research question: what are antecedents of venture performance? This research brought together two complementary theories, the resource-based view (RBV) and social network theory. By framing its conceptual model with two complementary theories and by using Initial Public Offering data, this research contributed to both academia and practitioners/policy makers with a prescriptive Initial Public Offering (IPO) performance model.; The final sample for this study was 103 IPO firms, which underwent an IPO in 1997. To test eight hypotheses developed from the conceptual model, this research collected its data from reliable secondary sources, such as IPO prospectus, the Center for Research in Security Prices (CRSP) database, the U.S. patent and trademark office, the Wall Street Journal, and the PR Newswires. Several different hierarchical regressions indicated that internal resources (“technology,” “reputation,” and “top management team (TMT) capability”) were antecedents of IPO performance. However, the hypothesized association between human resource and IPO performance was not found in this research. Second, the complementary role of “network cohesiveness” to the resource-based view (RBV) was empirically supported. Especially, “network affiliations” had a strong and positive contribution to IPO performance, and “social capital,” had a positive association with IPO performance as well. Finally, the moderating role of network cohesiveness to the relationship between internal resources and IPO performance were not statistically supported. This data indicated that there was not a positive moderating effect of network cohesiveness to the relationship between internal resources and IPO performance. |
