Institutions, Networks, and Organizational Growth

53 Pages Posted: 12 Jul 2006 Last revised: 22 Aug 2019

See all articles by Isin Guler

Isin Guler

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School

Mauro F. Guillen

University of Pennsylvania - Management Department

Date Written: April 1, 2006

Abstract

We examine the institutions that facilitate the growth of organizations. Following a Weberian approach, we argue that organizations prefer institutions that create an environment rich in technological opportunities, legally secure, financially vibrant and politically predictable, and that they rely on social networks in order to identify opportunities and reduce uncertainty. We report results using information on 1,010 American venture capital firms potentially investing in 95 countries during the 1990-2002 period. Countries with more opportunities, as measured by the level of scientific knowledge and technology, and those with more developed financial and political institutions receive more investments. We also find strong evidence for the effects of transnational communities and syndication networks.

Keywords: venture capital, international investment

Suggested Citation

Guler, Isin and Guillen, Mauro Federico, Institutions, Networks, and Organizational Growth (April 1, 2006). Available at SSRN: https://ssrn.com/abstract=913662 or http://dx.doi.org/10.2139/ssrn.913662

Isin Guler (Contact Author)

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School ( email )

McColl Building
Chapel Hill, NC 27599-3490
United States

Mauro Federico Guillen

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States
215-573-6267 (Phone)
215-326-3205 (Fax)

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