Drawing from the resource-based view and transaction costs economics, we develop a theoretical framework to explain why small and large firms face different levels of resource access needs and resource access capabilities, which mediate the relationship between firm size and hybrid governance. Employing a sample of 317 venture capital firms, drawn across six European countries, we empirically assess our framework in the context of venture capital syndication. We estimate a path model using structural equation modeling and find, consistent with our theoretical framework, mediating effects of different types of resource access needs and resource access capabilities between VC firm size and syndication frequency. These findings advance the small business literature by highlighting the trade-offs that size imposes on firms that seek to manage their access to external resources through hybrid governance strategies.

firm size, hybrid governance, investment syndication, resource access capabilities, resource access needs, transaction cost economics, venture capital
Information, Knowledge, and Uncertainty (jel D8), Financial Institutions and Services (jel G2), Corporate Finance and Governance (jel G3), Entrepreneurship (jel L26)
dx.doi.org/10.1007/s11187-008-9126-x, hdl.handle.net/1765/13874
ERIM Top-Core Articles
Small Business Economics: an entrepreneurship journal
Erasmus Research Institute of Management

Verwaal, E, Bruining, J, Wright, D.M, Manigart, S, & Lockett, A. (2010). Resources access needs and capabilities as mediators of the relationship between VC firm size and syndication. Small Business Economics: an entrepreneurship journal, 34(3), 277–291. doi:10.1007/s11187-008-9126-x