1 / 13

Origin and Development of a Network Paper

Origin and Development of a Network Paper. Jung-Chin Shen. Origin of the paper. It seems that a syndication network consisting both IVC and CVC increases the chance of IPO of an invested company. Behind the statement Incomplete data Wrong measure Wrong method Poor reasoning

lani-norton
Download Presentation

Origin and Development of a Network Paper

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Origin and Development of a Network Paper Jung-Chin Shen

  2. Origin of the paper • It seems that a syndication network consisting both IVC and CVC increases the chance of IPO of an invested company. • Behind the statement • Incomplete data • Wrong measure • Wrong method • Poor reasoning • Development of a paper is like a real option: when to exercise an abandon option is a strategic decision.

  3. What idea can be a paper? • Interesting • Interesting theories are those which deny certain assumptions of their audience, while non- interesting theories are those which affirm certain assumptions of their audience (Davis, 1971) • Important/Relevant: so what? • Practical implications • The tension between theory and practice: • Academics is important in its own right • Nothing is more practical than a good theory • A theory will be considered truly interesting only if it has repercussions on both levels

  4. What do we know about VC network? • Network positions are advantageous • VC investments tend to be highly localized • VC syndication networks • Risk sharing • Portfolio selection • Value-added • Post-investment monitoring • IVC’s complementary knowledge is advantageous

  5. First attempt A mix of IVC and CVC is useful for invested companies’ performance Shift of focus from network consequences to network formation Divide into two papers: one on determinants of VC syndication network, and the other on the effects of network on firm performance

  6. Second attempt • More: the effects of social networks (e.g., network positions) • Less: Network formation and network evolution • Research strategy: analogy • CVC, IVC+CVC, CVC • Hierarchy, network, market • Concurrent make-and-buy decision • Theoretical contribution? Empirical contribution? Why interesting? So what?

  7. Third attempt • More: the effects of social networks (e.g., network positions) • Less: Network formation and network evolution • Network formation • Repeated ties • Reciprocity • Common third party • Research strategy: What has been ignored? • Compare interpersonal and interorganizational • Homophily

  8. Homophily as an interorganizational networking principle • Homophily at the interorganizational level • Why interesting? • Taken-for-granted assumption: embeddedness • So what? • Target: embeddedness cannot correctly depict network structure or network evolution • Positioning • Explaining “hybrid network” • Analytical strategy • Comparing pure homophilious and heterophilous network

  9. Hypotheses generation • Counter-intuitive starting point: • Hybrid network is costly…. • Possible candidates • Spatial uncertainty • Industry distance • Experience • Theory development • Combine information economics and network theory • Justify data and sample selection

  10. A beautiful theory and inconvenient facts

  11. Control of publicly traded companies in East Asia

  12. Group affiliation around the world Source: Khanna and Yafeh (2005)

  13. Group heterogeneity around the world

More Related