This paper focuses on the development of entrepreneurial orientation (EO) after a management buy-out (MBO) and on the role played by venture capital firms in enhancing EO. It presents results of two exploratory case studies of divisional buy-outs with regard to their EO and the areas where the venture capital firm (VC) has been of greatest help. We discuss their contribution to elements of the EO of the buy-out firm. The key output is expected to be a better understanding of the functioning and operations of the VC with regard to their contribution to the EO of the firm after an MBO. This will also benefit the management team that seeks venture capital support to improve the firm?s economic performance by using its upside potential.

entrepreneurial orientation, governance, management buy-outs, venture capital
Capital Budgeting; Investment Policy (jel G31), Business Administration and Business Economics; Marketing; Accounting (jel M), Business Administration: General (jel M10)
Erasmus Research Institute of Management
hdl.handle.net/1765/222
ERIM Report Series Research in Management
Copyright 2002, H. Bruining, M. Wright, This report in the ERIM Report Series Research in Management is intended as a means to communicate the results of recent research to academic colleagues and other interested parties. All reports are considered as preliminary and subject to possibly major revisions. This applies equally to opinions expressed, theories developed, and data used. Therefore, comments and suggestions are welcome and should be directed to the authors.
Erasmus Research Institute of Management

Bruining, J, & Wright, D.M. (2002). Entrepreneurial Orientation In Management Buy-Outs And The Contribution Of Venture Capital (No. ERS-2002-67-ORG). ERIM Report Series Research in Management. Erasmus Research Institute of Management. Retrieved from http://hdl.handle.net/1765/222