origin and development of a network paper jung-chin shen
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What idea can be a paper? Interesting Interesting theories are those which deny certain assumptions of their audience, while non- interesting theories are those which affirm certain assumptions of their audience (Davis, 1971) Important/Relevant: so what? Practical implications The tension between theory and practice: Academics is important in its own right Nothing is more practical than a good theory A theory will be considered truly interesting only if it has repercussions on both levelsTRANSCRIPT
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Origin and Development of a Network PaperJung-Chin Shen
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Origin of the paper It seems that a syndication network consisting
both IVC and CVC increases the chance of IPO of an invested company.
Behind the statement Incomplete data Wrong measure Wrong method Poor reasoning
Development of a paper is like a real option: when to exercise an abandon option is a strategic decision.
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What idea can be a paper? Interesting
Interesting theories are those which deny certain assumptions of their audience, while non- interesting theories are those which affirm certain assumptions of their audience (Davis, 1971)
Important/Relevant: so what?Practical implications
The tension between theory and practice: Academics is important in its own right Nothing is more practical than a good theory A theory will be considered truly interesting only
if it has repercussions on both levels
![Page 4: Origin and Development of a Network Paper Jung-Chin Shen](https://reader035.vdocument.in/reader035/viewer/2022062302/5a4d1ae37f8b9ab05997844f/html5/thumbnails/4.jpg)
What do we know about VC network?Network positions are advantageousVC investments tend to be highly localizedVC syndication networks
Risk sharing Portfolio selection Value-added Post-investment monitoring
IVC’s complementary knowledge is advantageous
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First attemptA mix of IVC and CVC is useful for invested
companies’ performanceShift of focus from network consequences to
network formationDivide into two papers: one on determinants of
VC syndication network, and the other on the effects of network on firm performance
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Second attemptMore: the effects of social networks (e.g.,
network positions)Less: Network formation and network evolutionResearch strategy: analogy
CVC, IVC+CVC, CVC Hierarchy, network, market Concurrent make-and-buy decision
Theoretical contribution? Empirical contribution? Why interesting? So what?
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Third attemptMore: the effects of social networks (e.g.,
network positions)Less: Network formation and network evolutionNetwork formation
Repeated ties Reciprocity Common third party
Research strategy: What has been ignored? Compare interpersonal and interorganizational Homophily
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Homophily as an interorganizational networking principleHomophily at the interorganizational levelWhy interesting?
Taken-for-granted assumption: embeddednessSo what?
Target: embeddedness cannot correctly depict network structure or network evolution
Positioning Explaining “hybrid network”
Analytical strategy Comparing pure homophilious and heterophilous
network
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Hypotheses generationCounter-intuitive starting point:
Hybrid network is costly….Possible candidates
Spatial uncertainty Industry distance Experience
Theory development Combine information economics and network
theory Justify data and sample selection
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A beautiful theory and inconvenient facts
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Control of publicly traded companies in East Asia
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Group affiliation around the world
Source: Khanna and Yafeh (2005)
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Group heterogeneity around the world