Santiago Mingo

Collaborative Brokerage, Generative Creativity, and Creative Success:

Analyzing data on utility patents from 1975 to 2002 in the careers of 35,400 collaborative inventors, this study examines the influence of brokered versus cohesive collaborative social structures on an individuals creativity. We test the hypothesis that brokerage—direct ties to collaborators who themselves do not have direct ties to each other—leads to greater collaborative creativity. We then test interaction hypotheses on the marginal benefits of cohesion, when collaborators have independent ties between themselves that do not include the individual. We identify the moderators of brokerage and argue for contingent benefits, based on the interaction of structure with the attributes, career experiences, and extended networks of individuals and their collaborators. Using a social definition of creative success, we also trace the development of creative ideas from their generation through future use by others. We test the hypothesis that brokered ideas are less likely to be used in future creative efforts. The results illustrate how collaborative brokerage can aid in the generation of an idea but then hamper its diffusion and use by others.

Navigating Political Hazard Risks and Legal System Quality: Venture Capital Investments in Latin America

With emphasis on a venture’s institutional environment and its stage of development, the authors develop theory to explain how the quality of a nation’s legal system and the level of political hazards affect venture capital (VC) investment strategies in developing countries. The data set consists of 433 VC investment transaction rounds occurring in 13 Latin American countries over the period 1995 to 2003. Different from previous research on the likelihood of investment occurrence, the authors consider the size of an investment transaction as a dependent variable. The authors find a negative relationship between investment size and the political hazards risk and that larger investments are associated with ventures operating in lower quality legal systems. The authors also propose the moderating role of these institutional dimensions in the relationship between a venture’s stage of development and investment size. Findings indicate that in lower quality legal systems, conventional VC-staging strategies are not apparent, where middle and later stage ventures receive the largest investments, but with improvements to the legal system, increasingly larger investments go to early stage ventures. Regarding the stage interaction with political hazards, the authors find that the positive relationship between the venture’s stage of development and investment size weakens as the level of political hazards increases, and when political hazards are high, conventional VC-staging similarly does not occur. In uncovering the unique impact of these institutional dimensions with respect to developing country entrepreneurship, these findings shed light on the acute challenges faced by developing country ventures seeking VC funding at varying stages of development.

Entrepreneurial ventures, institutional voids, and business group affiliation: the case of two Brazilian start-ups, 2002-2009

Purpose – Institutional voids – the lack of institutions that can facilitate the functioning of markets – are ubiquitous in emerging markets. Because of their newness, entrepreneurial ventures are especially susceptible to institutional vacuums. This research seeks to shed light on the role that business groups can play in the development of entrepreneurial ventures in emerging markets. Design/methodology/approach – Based on detailed fieldwork, the study describes and analyzes the creation and evolution of two biotechnology start-ups that were affiliated to a major Latin American business group. The research covers the period between their foundation and later acquisition by a multinational company. Findings – The article discusses the role that the business group affiliation had in terms of helping the start-ups to interact with multiple institutional voids. The analysis shows that the start-ups benefited from the group’s reputation and connections, experience and know-how in managing different types of businesses in the country, strong resource base, long-term vision, and strong organizational culture. Originality/value – The main contribution of this work is to show that business group affiliation can be an interesting solution that facilitates the development of entrepreneurial ventures in emerging

The Impact of Acquisitions on the Performance of Existing Organizational Units in the Acquiring Firm: The Case of an Agribusiness Company

Companies frequently expand their production capacity through the acquisition of new organizational units. This study analyzes how the performance of existing units is affected by the acquisition of another unit. The research focuses on three mechanisms: managerial distraction, resource transfer, and knowledge sharing. These mechanisms are studied in the context of existing units and acquired units with different levels of proximity and similarity between them. Using a detailed data set from an agribusiness company, empirical analysis shows that after an acquisition event there is a temporary decrease in the performance of existing units that are geographically proximate to the acquired unit. Data analysis also shows that after an acquisition event there is an increase in the performance of existing units that have similar characteristics to the acquired unit. In this latter case, the rate of increase in performance diminishes over time. This research demonstrates that the acquisition of an organizational unit can have differing dynamic effects on different parts of the organization. This paper was accepted by Bruno Cassiman, business strategy.

Private Equity Investments in Emerging Markets, National Governance, and Geographic Distance: The Case of Latin America, 1996–2009

The high level of economic growth that emerging markets are experiencing lately — including Latin America — offers new opportunities for different types of investments. Private equity (PE) investments in emerging markets have risen from

Chapter 5 – Creativity in new product development: An evolutionary integration

3 billion in 2003 to almost

Industrial Policy and the Creation of New Industries: Evidence from Brazil's Bioethanol Industry

70 billion before the Great Recession of 2008–2009 (Emerging Markets Private Equity Association, 2010). In the case of Latin America, PE investments totalled more than

The interplay of national distances and regional networks: Private equity investments in emerging markets

7 billion in 2010 (LAVCA, 2011). By private equity we mean “financing for early- and later-stage private companies from third-party investors seeking high returns based on both the risk profiles of the companies and the near-term illiquidity of these investments” (Leeds & Sunderland, 2003: 8). For instance, venture capital (VC) is a type of private equity focused on start-ups.