Partner reputation and its effect on resource acquisition in entrepreneurial companies

Abstract

I study how two distinct dimensions of partner reputation, perceived quality and prominence, influence the mobilization of human and financial resources within entrepreneurial companies. Using a six-wave longitudinal research design and a random coefficient modeling approach, I track growth in employment and financial capital raised within 94 companies that initiate investment relationships with venture capital firms. Findings demonstrate how venture capital firm prominence allows portfolio companies to mobilize more human resources, while venture capital firm perceived quality plays a significant role in the mobilization of financial resources in portfolio companies.