Innovation, Learning, and Synergy Between Entrepreneurs and Venture Capitalists

Ron Berger, Moti Zviling


Uncertainty and complexity are fundamental to innovation and decision making, especially in global high technology industries. Entrepreneurs interact with venture capitalists through the entrepreneurs’ communication and learning about the potential of new business venture. We believe that uncertainty and complexity are fundamental to the process of innovation through the synergy between entrepreneurs and venture capitalists. The purpose of this conceptual paper is to provide a  conceptual synthesis on a  complexity system approach to the innovation relationship between entrepreneurs and venture capitalists.


Learning; Synergy; Venture Capital; Innovation; Entrepreneurship

Full Text:



Achrol, Ravi. (1991), “Evolution of the Marketing Organisation: New Forms for Turbulent Environments,” Journal of Marketing, Vol. 55, pp. 77-93.

Anderson, J., M. Rungtusanatham., and R. Schroeder. (1994), “A Theory of Quality Management underlying the Deming Management Method”, Academy of Management Review, Vol. 19, pp. 472-509.

Anderson, J. and J. Narus. (1990), “A Model of Distributor Firm and Manufacturer Firm Working Partnerships”, Journal of Marketing, Vol. 54, pp. 42-58.

Arndt, J. (1979), “Toward a Concept of Domesticated Markets”, Journal of Marketing, Vol. 43, pp. 69-75.

Berger, R; C.J. Choi; R. Herstein. (2013), “Cina’s Social Market Economy: The Leverage of Economic Growth”. International Journal of Asian Business and Information Management, Vol. 14 No. 1, pp. 21-30.

Berger, R. and R. Herstein. (2012), “The Limits of Guanxi From The Perspective of The Israeli Diamond Industry”, Journal of Chinese Economic and Foreign Trade Studies, Vol. 5 No. 1, pp. 29-41.

Berger, Ron; C. J. Choi; J.B. Kim. (2011), “Responsible Leadership From Multinational Enterprises in Bottom of The Pyramid Countries: The Knowledge of Local Managers”, Journal of Business Ethics, Vol. 101, pp. 553-561.

Bitner, M. (1990), “Evaluating Service Encounters: the Effects of Physical Surroundings and Employee Responses”, Journal of Marketing, Vol. 54, pp. 69-82.

Blau, P. (1975), Approaches to the Study of Social Structure. New York: Free Press.

Bonacich, P. (1987), “Power and Centrality: a Family of Measures”, American Journal of Sociology, Vol. 92, pp. 1170-1183.

Bolton, R. and J. Drew. (1991), “A Longitudinal Analysis of the Impact of Service Changes on Customer Attitudes”, Journal of Marketing, Vol. 55, pp. 1-9.

Brown, T., G. Churchill and J. Peter. (1993), “Improving the Measurement of Service Quality”, Journal of Retailing, Vol. 69, pp. 127-139.

Bucklin, L. and S. Sengupta. (1993). “Organizing Successful Co-Marketing Alliances”, Journal of Marketing, Vol. 57, pp. 32-46.

Burt, R. (1992), Structural Holes. Cambridge: Harvard University Press.

Camic, C. (1992), “Reputation and Predecessor Selection: Parsons and the Institutionalists”, American Sociological Review, Vol. 57, pp. 421-445.

Carroll, A.B. (1979), “A Three Dimensional Conceptual Model of Corporate Performance“, Academy of Management Review, Vol. 4, pp. 497-505.

Carter, R. and S. Manaster. (1990), “Initial Public Offerings and Underwriter Reputation”, Journal of Finance, Vol. 45, pp. 1045-1068.

Choi, C. J; R. Berger; J.B. Kim. (2010), “Capitalism’s Global Financial Crisis: The Role of the State”, The Social Science Journal, Vol. 47, pp. 829-835.

Coleman, J. (1990), Foundations of Social Theory.

Cambridge: Belknap Press of Harvard University Press.

Cronin, J. and S. Taylor. (1992), “Measuring Service Quality: a Re-examination and Extension”, Journal of Marketing, Vol. 56, pp. 55-68.

Curry, D. (1985), “Measuring Price and Quality Competition”, Journal of Marketing, Vol. 49, pp. 106-117.

D’Aveni, R. (1996), “A Multiple-Constituency, Status-Based Approach to Interorganizational Mobility of Faculty and Input-Output Competition among Top Business Schools”, Organization Science, Vol. 7, pp. 166-189.

Darby, M. and E. Karni. (1973), “Free Competition and the Optimal Amount of Fraud”, Journal of Law and Economics, Vol. 16, pp. 67-88.

Day, G. and R. Wensley. (1988), “Assessing Advantage: a Framework for Diagnosing Competitive Superiority”, Journal of Marketing, Vol. 52, pp. 1-20.

Day, George. (1994), “The Capabilities of Market-driven Organisation”, Journal of Marketing, Vol. 58, pp. 37-52.

Dean, J. and D. Bowen. (1994), “Management Theory and Total Quality: Improving Research and Practice through Theory Development”, Academy of Management Review, Vol. 19, pp. 392-418.

Dickson, P. (1992), “Toward a General Theory of Competitive Rationality”, Journal of Marketing, Vol. 56, pp. 69-83.

Donaldson, T. and L. Preston. (1995), “The Stakeholder Theory of the Corporation: Concepts, Evidence and Implications”, Academy of Management Review, Vol. 20, pp. 65-91.

Dutton, J.E. and Jackson, S. (1987), “Categorizing Strategic Issues: Links to Organizational Action”, Academy of Management Review, Vol. 12, pp. 76-90.

Dwyer, R., P. Schurr, S. Oh. (1987), “Developing Buyer-Seller Relationships”, Journal of Marketing, Vol. 51, pp. 11-27.

Dwyer, R. and O. Walker. (1981), “Bargaining in an Asymmetrical Power Structure”, Journal of Marketing, Vol. 45, pp. 104-115.

Eisenhardt, K. (1989), “Agency Theory: an Assessment and Review”, Academy of Management Review, Vol. 14, pp. 57-74.

Feld, S. (1981), “The Focused Organization of Social Ties”, American Journal of Sociology, Vol. 86, pp. 1015-1034.

Frank, R. and P. Cook. (1995), The Winner-Take-All Society. New York: Free Press.

Freeman, R. (1984), Strategic Management: a Stakeholder Approach. Boston: Pitman Press.

Granovetter, M. (1985), “Economic Action and Social Structure: the Problem of Embeddedness”, American Journal of Sociology, Vol. 91, pp. 481-510.

Haunschild, P. (1994), “How much is that Company worth? Interorganizational Relationships, Uncertainty and Acquisition Premiums”, Administrative Science Quarterly, Vol. 39, pp. 391-411.

Heil, O. and T. Robertson. (1991), “Toward a Theory of Competitve Market Siganling: a Research Agenda”, Strategic Management Journal, Vol. 12, pp. 403-418.

Hill, C. and T. Jones. (1992), “Stakeholder-Agency Theory”, Journal of Management Studies, Vol. 29, pp. 131-154.

Hosmer, L. (1995), “Trust: the Connecting link between Organizational Theory and Philosophical Ethics,” Academy of Management Review, Vol. 20, pp. 379-403.

Itami, H. with T. Roehl. (1987), Mobilizing Invisible Assets. Cambridge, MA.: Harvard University Press.

Jacobson, R. (1992), “The Austrian School of Strategy”, Academy of Management Review, Vol. 17, pp. 782-807.

Jervis, R. (1985), The Logic of Images in International Relations. Princeton: Princeton University Press.

Jones, T. (1995), “Instrumental Stakeholder Theory: a Synthesis of Ethics and Economics”, Academy of Management Review, Vol. 20, pp. 404-437.

Juran, P. (1988), A History of the Jews. New York: Harper and Row.

Kreps, D. and Spence, M. (1984), “Modeling the Role of History in Industrial Organization”, In G. Feiwel (Ed.), Contemporary Issues in Modern Microeconomics. London: Macmillan.

Levitt, T. (1972), “Production-line Approach to Service”, Harvard Business Review, Vol. 50, pp. 41-52.

Lippman, S. and Rumelt, R. (1982), “Uncertain Imitability: an Analysis of Interfirm Differences in Efficiency under Competition,” Bell Journal of Economics, Vol. 13, pp. 418-438.

Milgrom, P. and Roberts, J. (1992), Economics, Organization and Management. New Jersey: Prentice-Hall International.

Mills, P. and N. Margulies. (1980), “Toward a Core Typology of Service Organizations,” Academy of Management Review, Vol. 5, pp. 255-265.

Moore, M. (1992), “Signals and Choices in a Competitive Interaction: the Role of Moves and Messages,” Management Science, Vol. 4, pp. 483-500.

Nayyar, P. (1990), “Information Asymmetries: A Source of Competitive Advantage for Diversified Service Firms”, Strategic Management Journal, Vol. 11, pp. 513-519.

Nayyar, P. and Kazanjian, R. (1993), “Organizing to Attain Potential Benefits from Information Asymmetries and Economies of Scope in Related Diversified Firms,” Academy of Management Review, Vol. 18, pp. 735-759.

NG, Y-K; L. Voon-Hsien; A. Tun-Lee; and P-L, Gan. (2012), “The Relationship Between Knowledge Management Practices and Technology Innovation: A Conceptual Framework”, International Journal of Management, Knowledge, and Learning, Vol. 1 No. 2, pp. 71-89.

Norek, T. (2012), “Knowledge Management in the Innovation Potential of Enterprises: A Case Study of Practical Solutions”, International Journal of Management, Knowledge, and Learning, International Conference, pp73-85.

Norek, T. (2013), “The Knowledge Management for Innovation Processes for SME Sector Companies”, International Journal of Management, Knowledge, and Learning, Vol. 2 No. 1, pp. 83-89.

North, D. (1990), Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.

Parasuraman, A., L. Berry and V. Zeithaml. (1993), “More on Improving Service Quality Measurement”, Journal of Retailing, Vol. 69, pp. 140-147.

Parasuraman, A., V. Zeithaml, and L. Berry. (1985), “A Conceptual Model of Service Quality and its Implications for Future Research”, Journal of Marketing, Vol. 4, pp. 41-50.

Podolny, J. (1993), “A Status-Based Model of Market Competition,” American Journal of Sociology, Vol. 98, pp. 829-872.

Preston, L. and H. Sapienza. (1990), “Stakeholder Management and Corporate Performance,” Journal of Behavioral Economics, Vol. 19, pp. 361-375.

Reeves, C. and D. Bednar. (1994), “Defining Quality: Alternatives and Implications,” Academy of Management Review, Vol. 19, pp. 419-445.

Sedej, T. and G. Justinek. (2012), “Global Economic and financial Crisis – A Threat For Innovative SMEs”, International Journal of Management, Knowledge, and Learning, International Conference, pp87-95.

Shostack, G. (1977), “Breaking Free from Product Marketing,” Journal of Marketing, Vol. 41, pp. 73-80.

Simmel, G. (1950), “Superordination and Subordination,” in K. Wolf translation, The Sociology of Georg Simmel. Illinois: Free Press.

Sinkula, James. (1994), “Market Information Processing and Organisational Learning,” Journal of Marketing, Vol. 58, pp. 35-45.

Sorensen, A. (1983), “Processes of Allocation to Open and Closed Positions in Social Structure. Zeitschrift fuer Soziologie, Vol. 12, pp. 203-224.

Spence, M. (1973), Market Signalling. Cambridge: Harvard University Press.

Spender, J.C. and R. Grant. (1996), “Knowledge and the Firm: Overview”, Strategic Management Journal, Vol. 17, pp. 5-9.

Stern, L. and T. Reve. (1980), “Distribution Channels as Political Economies: a Framework for Comparative Analysis”, Journal of Marketing, Vol. 44, pp. 52-64.

Swanson, D. (1995), “Addressing a Theoretical Problem by Reorienting the Corporate Social Performance Model”, Academy of Management Review, Vol. 20, pp. 43-64.

Teece, D.J., Pisano, G., and Shuen, A. (1990), “Firm Capabilities, Resources, and the Concept of Strategy”, Working Paper, University of California at Berkeley.

Waldman, D. (1994), “The Contributions of Total Quality Management to a Theory of Work Performance,” Academy of Management Review, Vol. 19, pp. 510-536.

White, H. (1970), Chains of Opportunity: System models of mobility in organizations. Cambridge: Harvard University Press.

Williamson, O.E. (1985), The Economics Institutions of Capitalism. New York: Free Press.

Wood, D.J. (1991a), “Corporate Social Performance Revisited”, Academy of Management Review, Vol. 16, pp. 691-718.

Wood, D.J. (1991b), “Social Issues in Management: Theory and Research in Corporate Social Performance”, Journal of Management, Vol. 17, pp. 383-406.

Zeithaml, V. A. Parasuraman, L. Berry. (1990), Delivering quality service. New York: Free Press.

Data publikacji: 2013-07-14 00:00:00
Data złożenia artykułu: 2015-07-18 03:36:28


  • There are currently no refbacks.

Copyright (c) 2015 Ron Berger, Moti Zviling

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.