Determinants of Venture Capital-Backed Firms Performance: A Conceptual Framework

As the intensity increases rapidly in terms of business competition, it is very necessary to gain a better insight into what factors could influence the performance of venture capital-backed firms, which will enable venture capitalists to identify viable business opportunities and entrepreneurs to explore competitive advantages. This paper mainly studies the determinants of venture capital-backed firms´ performance. The authors develop a conceptual framework for analyzing the impact of different factors on performance of venture capital-backed firms, and propose five hypotheses. Namely, industry growth, internal capabilities, entrepreneurial strategy making, venture capitalists value-added activities and external networks will be positively related to the performance of venture capital-backed firms. Finally, this paper discusses implications of the study and also provides directions for future research. This study provides a platform to future empirical investigation. It will facilitate researchers to go one step further to find out what factors can improve the performance of venture capital-backed firms