When Venture Capitalists Clash: Exploring the Impact of Ownership and Status Mismatch on New Venture Growth

Li Wang; Zhu Zhu; Sunny Li Sun

doi:10.1177/21582440251415059

When Venture Capitalists Clash: Exploring the Impact of Ownership and Status Mismatch on New Venture Growth

Li Wang
, Zhu Zhu
, Sunny Li Sun

Management

Research output: Contribution to journal › Article › peer-review

Abstract

This study investigates the impact of power source mismatch of venture capital syndication on the growth performance of new ventures, considering their corporate governance and institutional environment. Using data from listed companies in the small and medium enterprises market in China, we find that ownership-dominated power source mismatch in venture capital syndication enhances new venture growth performance, while status-dominated power source mismatch has the opposite effect. Additionally, the positive performance impact of ownership-dominated power source mismatch is amplified when the venture capital firm with the highest ownership power joins the board and when the new venture is headquartered in a province with a higher degree of marketization.

Original language	English
Journal	SAGE Open
Volume	16
Issue number	1
DOIs	https://doi.org/10.1177/21582440251415059
State	Published - 1 Jan 2026

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 9 Industry, Innovation, and Infrastructure

Keywords

growth performance
institutional environment
marketization
power source mismatch
venture capital syndication

Access to Document

10.1177/21582440251415059

Cite this

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title = "When Venture Capitalists Clash: Exploring the Impact of Ownership and Status Mismatch on New Venture Growth",

abstract = "This study investigates the impact of power source mismatch of venture capital syndication on the growth performance of new ventures, considering their corporate governance and institutional environment. Using data from listed companies in the small and medium enterprises market in China, we find that ownership-dominated power source mismatch in venture capital syndication enhances new venture growth performance, while status-dominated power source mismatch has the opposite effect. Additionally, the positive performance impact of ownership-dominated power source mismatch is amplified when the venture capital firm with the highest ownership power joins the board and when the new venture is headquartered in a province with a higher degree of marketization.",

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N2 - This study investigates the impact of power source mismatch of venture capital syndication on the growth performance of new ventures, considering their corporate governance and institutional environment. Using data from listed companies in the small and medium enterprises market in China, we find that ownership-dominated power source mismatch in venture capital syndication enhances new venture growth performance, while status-dominated power source mismatch has the opposite effect. Additionally, the positive performance impact of ownership-dominated power source mismatch is amplified when the venture capital firm with the highest ownership power joins the board and when the new venture is headquartered in a province with a higher degree of marketization.

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KW - institutional environment

KW - marketization

KW - power source mismatch

KW - venture capital syndication

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When Venture Capitalists Clash: Exploring the Impact of Ownership and Status Mismatch on New Venture Growth

Abstract

UN SDGs

Keywords

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