Venture Capital and Exporting – Some Evidence from EU Countries

Open access

Abstract

Purpose: The aim of this article is to present the results of the research on the export of venture capi tal backed firms in the European Union countries.

Methodology: For the purpose of this article, the author created four linear regression models. He decided for export revenue to be a dependent variable. Then, the author verified the influence of four independent variables on export value.

Findings: The research found that the turnover of venture capital backed firms positively influences their export value. Moreover, the costs of employees also play an important role in export value explanation. Nevertheless, the empirical study did not confirm any strong positive correlation of analyzed firms’ export value with the number of employees and their share of shareholders’ funds in operating income.

Limitations: The analyzed period was limited only to 2016. Second, the study used only one dependent and four independent variables. Further research must include other variables, especially moderating ones, such as entrepreneurship ratio or availability of external financing forms. Third, the regression models were based on data retrieved from Orbis Database and can induce uncertainty regarding its credibility.

Originality: At present, there are still only few research studies that explore the export of venture capital backed firms.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Aizenman J. and Kendall J. (2012). The internationalization of venture capital. Journal of Economic Studies39(5): 488–511 https://doi.org/10.1108/01443581211259446

  • Azarmi D. (2016). The most influential factors in venture capitals’ exit decision: A qualitative study among Spanish venture capitalists. In: M. Kosała M. Urbaniec and A. Żur (eds.) Przedsiębiorczość Międzynarodowa2(2): 257–268.

  • Bannock G. and Doran A. (1991). Venture Capital and the Equity Gap. London: National Westminster Bank.

  • Bergemann D. and Hege U. (1998). Venture capital financing moral hazard and learning. Journal of Banking & Finance22(6–8) https://doi.org/10.1016/S0378-4266(98)00017-X

  • Bilkey W.J. and Tesar G. (1977). The Export Behavior of Smaller-Sized Wisconsin Manufacturing Firms. Journal of International Business Studies8(1): 93–98 https://doi.org/10.1057/palgrave.jibs.8490783

  • Bonaccorsi A. (1992). On the Relationship Between Firm Size and Export Intensity. Journal of International Business Studies23(4): 605–635 https://doi.org/10.1057/palgrave.jibs.8490280

  • Bruton G.D. Fried V.H. and Manigart S. (2005). Institutional influences on the worldwide expansion of venture capital. Entrepreneurship Theory and Practice 29(6): 737–760 https://doi.org/10.1111/j.1540-6520.2005.00106.x

  • Clercq D. de and Manigart S. (2007). The Venture Capital Post-investment Phase: Opening the Black Box of Involvement. W: H. Landström (ed.) Handbook of Research on Venture Capital. Edward Elgar Publishing https://doi.org/10.4337/9781847208781.00015

  • Cumming D.J. and MacIntosh J.G. (2003). Venture-Capital Exits in Canada and the United States. The University of Toronto Law Journal53(2): 101 https://doi.org/10.2307/3650880

  • Ćuzović S. Mladenović S.S. and Ćuzović D. (2017). The Impact of Retail Formats on the Development of Food Retailing. Entrepreneurial Business and Economics Review5(1): 11–26 https://doi.org/10.15678/EBER.2017.050101

  • Devigne D. Vanacker T. Manigart S. and Paeleman I. (2013). The role of domestic and cross-border venture capital investors in the growth of portfolio companies. Small Business Economics40(3): 553–573 https://doi.org/10.1007/s11187-011-9383-y

  • EVCA (2007). Guide on Private Equity and Venture Capital for Entrepreneurhttps://www.investeurope.eu/media/78722/guide-on-private-equity-and-venture-capital-2007.pdf

  • EVCA (2017). Central and Eastern Europe Private Equity Statistics 2016https://www.investeurope.eu/media/671537/invest-europe_cee_privateequitystatistics2016_24082017.pdf.

  • Fernhaber S.A. and McDougall-Covin P.P. (2009). Venture Capitalists as Catalysts to New Venture Internationalization: The Impact of Their Knowledge and Reputation Resources. Entrepreneurship Theory and Practice33(1): 277–295 https://doi.org/10.1111/j.1540-6520.2008.00289.x

  • George G. Wiklund J. Zahra and S.A. (2005). Ownership and the Internationalization of Small Firms. Journal of Management31(2): 210–233 https://doi.org/10.1177/0149206304271760

  • Gomez-Mejia L.R. and Palich L.E. (1997). Cultural diversity and the performance of multinational firms. Journal of International Business Studies28(2): 309–335.

  • Gompers P. and Lerner J. (2001). The Venture Capital Revolution. Journal of Economic Perspectives 15(2): 145–168 https://doi.org/10.1257/jep.15.2.145

  • Hall G. and Tu C. (2003). Venture capitalists and the decision to invest overseas. Venture Capital5(2): 181–190 https://doi.org/10.1080/1369106032000097058

  • Hellmann T. (1998). The allocation of control rights in venture capital contracts. The Rand Journal of Economics29(1): 57–76.

  • Hellmann T. and Puri M. (2002). Venture Capital and the Professionalization of Start-Up Firms: Empirical Evidence. The Journal of Finance57(1): 169–197 https://doi.org/10.1111/1540-6261.00419

  • Kazlauskaitė R. Autio E. Šarapovas T. Abramavičius Š. and Gelbūda M. (2015). The Speed and Extent of New Venture Internationalization in the Emerging Economy Context. Entrepreneurial Business and Economics Review3(2): 41–52 https://doi.org/10.15678/EBER.2015.030204

  • Kilkenny M. and Partridge M.D. (2009). Export Sectors and Rural Development. American Journal of Agricultural Economics91(4): 910–929 https://doi.org/10.1111/j.1467-8276.2009.01320.x

  • Landström H. (2007). Pioneers in venture capital research. In: H. Landström (ed.) Handbook of research on venture capital. Cheltenham UK Northampton MA USA: Edward Elger.

  • Leichenko R.M. (2000). Exports Employment and Production. A Causal Assessment of U.S. States and Regions Economic Geography76(4): 303–325 https://doi.org/10.1111/j.1944-8287.2000.tb00146.x

  • Lockett A. Wright M. Burrows A. Scholes L. and Paton D. (2008). The export intensity of venture capital backed companies. Small Business Economics31(1): 39–58 https://doi.org/10.1007/s11187-008-9109-y

  • McDougall P.P. and Oviatt B.M. (1996). New venture internationalization strategic change and per formance: A follow-up study. Journal of Business Venturing11(1): 23–40 https://doi.org/10.1016/0883-9026(95)00081-X

  • Metrick A. and Yasuda A. (2011). Venture capital & the finance of innovation (2nd ed.). Hoboken: John Wiley & Sons.

  • Murray G. (1994). The European union’s support for new technology-based firms: An assessment of the first three years of the European seed capital fund scheme. European Planning Studies2(4): 435–461 https://doi.org/10.1080/09654319408720280

  • Oviatt B.M. and McDougall P.P. (1994). Toward a Theory of International New ventures. Journal of International Business Studies25(1): 45–64 https://doi.org/10.1057/palgrave.jibs.8490193

  • Prowse S.D. (1998). The economics of the private equity market. Economic Review-Federal Reserve Bank of Dallas3: 21–34.

  • Rosa A. (2008). Venture Capital w Polsce. Zeszyty Naukowe Wydziału Nauk Ekonomicznych Politechniki Koszalińskiej12: 133–143.

  • Ruigrok W. and Wagner H. (2003). Internationalization and Performance: An Organizational Learn ing Perspective. Management International Review43(1): 63–83.

  • Schertler A. and Tykvov’a T. (2011) Venture capital and internationalization. International Business Review20(4): 423–439.

  • Tamowicz P. (1995). Fundusze inwestycyjne typu venture capital: Narodziny i rozwój warunki rozwoju venture capital w Polsce. Gdańsk: Instytut Badań nad Gospodarką Rynkową.

  • Tamowicz P. (2004). Venture capital – kapitał na start. Gdańsk: Polska Agencja Rozwoju Przedsiębiorczości.

  • Wach K. (2005). Współpraca małych i średnich przedsiębiorstw z ośrodkami naukowo-badawczymi na przykładzie Krakowskiego Parku Technologicznego. Zeszyty Naukowe Akademii Ekonomicznej w Krakowie671: 117–133.

  • Westhead P. Wright M. and Ucbasaran D. (2001). The internationalization of new and small firms. Journal of Business Venturing16(4): 333–358 https://doi.org/10.1016/S0883-9026(99)00063-4

  • Wright M. Lockett A. and Pruthi S. (2002). Internationalization of Western Venture Capitalists into Emerging Markets: Risk Assessment and Information in India. Small Business Economics19(1): 13–29 https://doi.org/10.1023/A:1015729430581

  • Wright M. Pruthi S. and Lockett A. (2005). International venture capital research: From cross-country comparisons to crossing borders. International Journal of Management Reviews7(3): 1–31.

  • Zaheer S. (1995). Overcoming the Liability of Foreignness. Academy of Management Journal38(2): 439–646.

  • Zahra S.A. Neubaum D.O. and Naldi L. (2007). The Effects of Ownership and Governance on SMEs’ International Knowledge-based Resources. Small Business Economics29(3): 309–327 https://doi.org/10.1007/s11187-006-9025-y

Search
Journal information
Metrics
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 116 116 12
PDF Downloads 109 109 12