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This paper documents a methodology used to assess, for the first time, the costs to the taxpayer of small and medium enterprise (SME) and entrepreneurship policy in Sweden. It then [...]

This paper studies the role of entrepreneurs in investment tie formation in science-based entrepreneurial firms. Specifically, we address why investment tie formation is path dependent for some firms but more [...]

To authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1467-6486.2009.00897.x Byline: Miguel Meuleman (1), Andy Lockett (2), Sophie Manigart (3), Mike Wright (2) Abstract: abstract By combining insights from relational network theory and agency theory we identify the boundary conditions to the embeddedness approach to partner selection decisions in interfirm collaborations. Employing a longitudinal dataset comprising the investment syndicates for the population of UK management buyouts between 1993 and 2003, we find that relational embeddedness is less important for selecting partners when agency risks are low, allowing firms to expand their networks. Furthermore, reputational capital may act as a partial substitute for relational embeddedness, again permitting firms to expand their networks. Our findings enhance understanding of the boundary conditions associated with the relational network approach to partner selections and network behaviour. Author Affiliation: (1)Vlerick Leuven Gent Management School; (2)Nottingham University Business School; (3)Ghent University Article note: Mike Wright, Centre for Management Buy-out Research, Nottingham University Business School, Jubilee Campus, Wollaton Road, Nottingham NG8 1BB, UK (mike.wright@nottingham.ac.uk).

To authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1468-5957.2009.02124.x Byline: Miguel Meuleman (1), Mike Wright (1), Sophie Manigart (1), Andy Lockett (1) Keywords: private equity; syndication; agency theory; leveraged buyouts; venture capital Abstract: Abstract: Syndicates are a form of inter-firm alliance in which two or more private equity firms invest together in an investee firm and share a joint pay-off, and are an enduring feature of the leveraged buyout (LBO) and private equity industry. This study examines the relationship between syndication and agency costs at the investor-investee level, and the extent to which the reputation and the network position of the lead investor mediate this relationship. We examine this relationship using a sample of 1,122 buyout investments by 80 private equity companies in the UK between 1993 and 2006. Our findings show that where agency costs are highest, and hence ex-post monitoring by the lead investor is more important, syndication is less likely to occur. The negative relationship between agency costs and syndication, however, is alleviated by the reputation and network position of the lead investor firm. Author Affiliation: (1)The first author is from Vlerick Leuven Gent Management School and Centre for Management Buy-out Research Nottingham University Business School. The second author is from the Centre for Management Buy-out Research Nottingham University Business School and RSM, Erasmus University, Rotterdam. The third author is from Vlerick Leuven Gent Management School and Universiteit Gent, Belgium. The fourth author is from the Centre for Management Buy-out Research Nottingham University Business School. They would like to thank the editor and the anonymous referee for very helpful comments. Thanks to Barclays Private Equity for financial support. Article History: (Paper received April 2007, revised version accepted December 2008) Article note: (*) Address for correspondence: Mike Wright, Centre for Management Buy-out Research, Nottingham University Business School, Jubilee Campus, Wollaton Road, Nottingham NG8 1BB, UK., e-mail: mike.wright@nottingham.ac.uk

Agency theory has focused on buyouts as a governance and control device to increase profitability, organizational efficiency, and limited attention to growth. A strategic entrepreneurship view of buyouts incorporates upside [...]

Financial theory, access to deal flow, selection, and monitoring skills are used to explain syndication in venture capital firms in six European countries. In contrast with U.S. findings, portfolio management [...]