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Entrepreneurs’ resource background, innovation, philanthropy and the exit of external Investment in Private Ventures in China

Author

Listed:
  • Jintong Tang

    (Saint Louis University)

  • Zhi Tang

    (Rochester Institute of Technology)

  • Renhong Zhu

    (Sun Yat-sen University)

  • Xinchun Li

    (Sun Yat-sen University)

Abstract

Retaining external investment is an important task for private firms. However, the entrepreneurial financing literature has primarily focused on how to attract, instead of retain, start-up funding. Integrating social embeddedness, signaling, and strategic choice theories, we propose that entrepreneurs’ resource background, philanthropic, and innovative activities affect the exit speed of external investment for Chinese private ventures. In particular, we propose that external investment exits entrepreneurs with deprived resources faster than those more resourceful entrepreneurs. Yet, external investment stays longer when less resourceful entrepreneurs commit to innovative or philanthropic activities.

Suggested Citation

  • Jintong Tang & Zhi Tang & Renhong Zhu & Xinchun Li, 2021. "Entrepreneurs’ resource background, innovation, philanthropy and the exit of external Investment in Private Ventures in China," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 467-489, June.
    • Handle: RePEc:kap:asiapa:v:38:y:2021:i:2:d:10.1007_s10490-019-09674-0
    DOI: 10.1007/s10490-019-09674-0
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    References listed on IDEAS

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    Cited by:

    1. Zhi Tang & Sandra Rothenberg & Jintong Tang & Renhong Zhu & Hongxin Zhao, 2023. "Social stratification and the philanthropy engagement strategy: Evidence from Chinese entrepreneurial firms," Asia Pacific Journal of Management, Springer, vol. 40(4), pages 1579-1606, December.
    2. Weiqi Dai & Juelin Yin & Mingqing Liao & Felix Arndt, 2023. "Corporate philanthropy, political connections, and external corporate venturing: Evidence from a transitional economy," Asia Pacific Journal of Management, Springer, vol. 40(3), pages 1253-1287, September.
    3. Zahid Sarwar & Jingmei Gao & Adnan Khan, 2024. "Nexus of digital platforms, innovation capability, and strategic alignment to enhance innovation performance in the Asia Pacific region: a dynamic capability perspective," Asia Pacific Journal of Management, Springer, vol. 41(2), pages 867-901, June.

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