Saeed Shojaei, Mahmood Motavaseli, Ali Bitaab, Hasti Chitsazan and Ghanbar Mohammadi Elyasi
This paper aims to explore the barriers that constrain the venture capital (VC) financing in Iran based on the institutional theory.
Abstract
Purpose
This paper aims to explore the barriers that constrain the venture capital (VC) financing in Iran based on the institutional theory.
Design/methodology/approach
To answer the question, “How institutional barriers constrain the VC financing in Iran?”, 31 detailed interviews were conducted, and the interviewed data were analysed by using the grounded theory method.
Findings
There exist several institutional barriers (formal and informal) in different stages of the VC investment process in Iran. Major formal institutional deficiencies include lack of appropriate financial regulations, inefficacy in tax, labour, property rights, financial disclosure, bankruptcy, investor’s protection laws and regulations, lack of credit rating/scoring system, inefficacy in small and medium-sized enterprise-supporting policies and capital market underdevelopment. Moreover, there exist some informal institutional barriers such as culture of capitalism disapproval, culture of secrecy, individualistic customs and weakness of managerial skills that constrain VC activities in Iran.
Research limitations/implications
The research findings imply that the government’s role should change from “establishment of government-sponsored VC funds” to “enforcement of institutional reforms that lead to an appropriate framework for VC investment”.
Originality/value
This paper has made three key contributions. First, it has provided comprehensive insights into how institutional barriers constrain the VC investment in a developing country. Second, a new stage-wise model is proposed for analysing the VC investment process. Third, existing knowledge about the role of both formal and informal institutions in the VC investment is extended.
Details
Keywords
Sepehr Ghazinoory, Ali Bitaab and Ardeshir Lohrasbi
In the last two decades, researchers have paid much attention to the role of cultural values on economic and social development. In particular, the crucial role of different…
Abstract
Purpose
In the last two decades, researchers have paid much attention to the role of cultural values on economic and social development. In particular, the crucial role of different aspects of culture on the development of innovation has been stressed in the literature. Consequently, it is vital to understand how social capital, as a core cultural value, affects the innovation process and the innovative performance at the national level. However, to date, the impact of different dimensions of social capital and innovation has not been properly portrayed or explained. Thus, the purpose of this paper is to investigate the influence of four different dimensions of social capital (institutional and interpersonal, associational life and norms) on two of the main functions of national innovation system (NIS) (entrepreneurship and knowledge creation) based on over 50,000 observations in 34 countries.
Design/methodology/approach
In this regard, national-level data from the World Values Survey database was employed to quantify social capital. Entrepreneurship is, in turn, assumed to consist of three sub-indexes and 14 indicators based on the Global Entrepreneurship Index. Knowledge creation is also measured through US Patent Office applications. Also, exploratory factor analysis and structural equation modeling approach were used to build the measurement model and investigate the impact that each factor of social capital had on entrepreneurship and knowledge application, respectively. Measurement and structural models were built and their reliability and validity were tested using various fit indices. Research findings suggest the strong positive effect of institutional trust and networking on entrepreneurship. Also, interpersonal trust and networks were shown to have high influence on knowledge development at the national level. Norms appear to have naïve to medium negative effects on both functions.
Findings
Research findings suggest the strong positive effect of institutional trust and networking on entrepreneurship. Also, interpersonal trust and networks were shown to have high influence on knowledge development at the national level. Norms appear to have naïve to medium negative effects on both functions.
Originality/value
However, to date, the impact of different dimensions of social capital and innovation has not been properly portrayed or explained.
Details
Keywords
Jurgita Raudeliuniene, Ekaterina Albats and Mirna Kordab
The purpose of this study is to examine the impact of information technologies and technology-enabled social networks on the efficiency of knowledge management processes in the…
Abstract
Purpose
The purpose of this study is to examine the impact of information technologies and technology-enabled social networks on the efficiency of knowledge management processes in the Middle Eastern audit and consulting companies.
Design/methodology/approach
Scientific literature analysis, structural equation modeling and expert evaluation (structured questionnaire) were used to develop the research model, collect data from the audit and consulting companies’ experts and test the research hypotheses.
Findings
The empirical results of this research supported the hypotheses stating that information technologies and social networks positively affect the knowledge management cycle, including five processes (acquisition, creation, storage, sharing and application) within the Middle Eastern audit and consulting companies.
Research limitations/implications
The research results were generated from the Middle Eastern audit and consulting companies, which form a limitation concerning the geographical area and the business sector.
Practical implications
From the results of this study, audit and consulting companies, as well as organizations and society broadly, would benefit via the positive effect of information technologies and technology-enabled social networks on the whole knowledge management cycle, which has a further impact on organizational performance. These practical implications are related to a more open, sharing culture that drives organizational performance to the members and stakeholders of organizations, which, in turn, benefits society.
Originality/value
This research analyzes information technologies and technology-enabled social networks’ impact on knowledge management processes, particularly in the context of the Middle Eastern audit and consulting companies. While the phenomena have received some attention in the prior scientific research, the studied context so far remained under-researched, where a gap is found in studying the knowledge management cycle as a whole.