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Sustainable Venture Capital Investments: An Enabler Investigation

Author

Listed:
  • Elena Antarciuc

    (Faculty of Management and Economics, Dalian University of Technology, 2 Linggong Road, Dalian 116024, China)

  • Qinghua Zhu

    (Antai College of Economics and Management, Shanghai Jiao Tong University, 1954 Huashan Road, Shanghai 200030, China)

  • Jaber Almarri

    (Faculty of Management and Economics, Dalian University of Technology, 2 Linggong Road, Dalian 116024, China)

  • Senlin Zhao

    (School of Economics and Management, Shanghai Maritime University, 1550 Haigang Ave, Shanghai 201306, China)

  • Yunting Feng

    (Antai College of Economics and Management, Shanghai Jiao Tong University, 1954 Huashan Road, Shanghai 200030, China)

  • Martin Agyemang

    (Faculty of Management and Economics, Dalian University of Technology, 2 Linggong Road, Dalian 116024, China)

Abstract

Investing in sustainable projects can help tackle the current sustainability challenges. Venture capital investments can contribute significantly to the growth of sustainable start-ups. Sustainable venture capital (SVC) research is just emerging. This paper identifies enablers for sustainable venture capital investments in Saudi Arabia taking into account different stakeholders and firm’s tangible and intangible resources. Using perspectives from venture capital experts in Saudi Arabia and the grey-based Decision-Making Trial and Evaluation Laboratory (DEMATEL) method, this study pinpoints the most critical enablers and investigates their causal and effect interconnections. The methodological process consists of reviewing the SVC literature and consulting the experts to identify the SVC enablers, creating a questionnaire, acquiring the answers from four experts, analyzing the data with grey-based DEMATEL and performing a sensitivity analysis. The government use of international standards, policies and regulations for sustainable investments, the commitment of the venture capitalists to sustainability and their deep understanding of sustainable business models are the most influential enablers. The paper concludes with implications for different actors, limitations and prospective directions for the sustainable venture capital research.

Suggested Citation

  • Elena Antarciuc & Qinghua Zhu & Jaber Almarri & Senlin Zhao & Yunting Feng & Martin Agyemang, 2018. "Sustainable Venture Capital Investments: An Enabler Investigation," Sustainability, MDPI, vol. 10(4), pages 1-22, April.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:4:p:1204-:d:141339
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    Cited by:

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    4. Yuri Jo & Jungho Kim, 2019. "The Impact of Experience on Private Target Acquisition in High-Technology Industries," Sustainability, MDPI, vol. 11(6), pages 1-17, March.
    5. Ehsan Javanmardi & Sifeng Liu & Naiming Xie, 2020. "Exploring Grey Systems Theory-Based Methods and Applications in Sustainability Studies: A Systematic Review Approach," Sustainability, MDPI, vol. 12(11), pages 1-32, May.
    6. Xiqiang Xia & Junhu Ruan, 2020. "Analyzing Barriers for Developing a Sustainable Circular Economy in Agriculture in China Using Grey-DEMATEL Approach," Sustainability, MDPI, vol. 12(16), pages 1-25, August.
    7. Jihye Jeong & Juhee Kim & Hanei Son & Dae-il Nam, 2020. "The Role of Venture Capital Investment in Startups’ Sustainable Growth and Performance: Focusing on Absorptive Capacity and Venture Capitalists’ Reputation," Sustainability, MDPI, vol. 12(8), pages 1-13, April.
    8. Zichun Yan & Kai Wang & Sang-Bing Tsai & Lili Zhou, 2018. "An Empirical Study on Internet Startup Financing From a Green Financial Perspective," Sustainability, MDPI, vol. 10(8), pages 1-16, August.
    9. Sebastian Hinderer & Leif Brändle & Andreas Kuckertz, 2021. "Transition to a Sustainable Bioeconomy," Sustainability, MDPI, vol. 13(15), pages 1-16, July.
    10. Deniz Tunçalp & Nihan Yıldırım, 2022. "Sustainable Entrepreneurship: Mapping the Business Landscape for the Last 20 Years," Sustainability, MDPI, vol. 14(7), pages 1-21, March.

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