Antecedents of new venture performance : an empirical study of IPO (Initial Public Offering) ventures

To address a ubiquitous phenomenon in the venture area - why certain ventures persistently outperform others, but some of them do not - this research pursued to answer a specific research question: what are antecedents of venture performance? This research brought together two complementary theories, the resource-based view (RBV) and social network theory. By framing its conceptual model with two complementary theories and by using Initial Public Offering data, this research contributed to both academia and practitioners/policy makers with a prescriptive Initial Public Offering (IPO) performance model. The final sample for this study was 103 IPO firms, which underwent an IPO in 1997. To test eight hypotheses developed from the conceptual model, this research collected its data from reliable secondary sources, such as IPO prospectus, the Center for Research in Security Prices (CRSP) database, the U.S. patent and trademark office, the Wall Street Journal, and the PR Newswires. Several different hierarchical regressions indicated that internal resources ("technology," "reputation," and "top management team (TMT) capability") were antecedents of IPO performance.