Value cognition of new technology-based firms: An exploratory research on Chinese technology entrepreneurs and venture capitalists

Luo Guofeng, Tan Yi, Haitian Lu

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review

Abstract

In understanding the value cognition process and divergence between Chinese venture capitalists ("VC") and techno-entrepreneurs ("TE"), we classify the numerous value cognitive criteria into two types, Resource and Performance, and construct a new dependent variable "Importance of resource over performance ("IROP)" to explore the value cognition gap between Chinese VCs and TEs. Based on a survey data of 33 TEs and 27 VCs collected in China in 2007, we show that the perceived relative importance of Resource over Performance decreases along the NTBF's development stage, with both VCs and TEs allocating higher weight on Performance over Resource indicators as the NTBF grows. Furthermore, we find the gap in the perceived IROP between VCs and TEs is significant in the middle and late stages; however such difference is not significant in early stages. Our findings have implications on both the techno-entrepreneurship literature and the venture capital financing practices.
Original languageEnglish
Title of host publication2008 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2008
DOIs
Publication statusPublished - 31 Dec 2008
Event2008 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2008 - Dalian, China
Duration: 12 Oct 200814 Oct 2008

Conference

Conference2008 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2008
CountryChina
CityDalian
Period12/10/0814/10/08

Keywords

  • New technology-based firm (NTBF)
  • Performance
  • Resource
  • Techno-entrepreneur (TE)
  • Venture capitalist (VC)

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Software
  • Electrical and Electronic Engineering

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