Abstract

A shared culture of VC investment across countries founded upon common professional practices suggests that VC investment decision-making in different countries will be homogenous and will transcend cultural differences. However, institutions have an affect on VC investment decision-making. China has an institutional environment substantially different from that of the rest of the world. Chinese cultural norms, customs, and traditions are pervasive and permeate decision making at all levels and facets of Chinese life, including the shaping of entrepreneurial behavior and investment in entrepreneurial ventures. As institutional theory predicts, Chinese VC decision preferences will be both similar and different from those identified in western cultures. Our research explores this and we consider how institutional and cultural differences explain this phenomenon.

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