Interorganizational Coopetition and Knowledge Flow Dynamics among Venture Capital firms

This study reflects the importance of knowledge flows in interorganizational coopetition with consideration to venture capital (VC) firms. The study develops several sections, highlighting the essential concepts of coopetition and knowledge flows. The dynamics of coopetition explain the cooperative interactions and competitive forces between firms, aiming at accessing resources and developing competitive advantages. Correspondingly, the study highlights the significance of knowledge management regarding the use and transfer of knowledge between VC firms, when they take part in the support and development of new ventures (e.g., startups). Interorganizational knowledge sharing and exchange is examined.

The balance between these elements leads to the profitable and sustainable development of new ventures that can be achieved by managing coopetitive relationships. Concerning the capability of venture capitalists, this study also provides insights as to how knowledge exchange between VC firms affects new venture’s growth and prosperity. Therefore, two modes of interorganizational knowledge transfer (i.e., knowledge acquisition and knowledge access) are discussed.

The study is focusing on, while comparing and contrasting, the members of various co-dependent networks of venture capital firms (e.g., NVCA, EVCA, BVCA, IVCA, CVCA, JVCA, AVCAL). The aim is to identify the similarities and compare and contrast the differences by examining the outcome of interorganizational coopetition and knowledge flow dynamics in the above networks as to the provided prospects of growth for the new ventures.

Importance

This study is essential and unique since there is no such research conducted in the past, examining the dynamics of knowledge flows in interorganizational coopetition between VC firms. The study enlightens us about concepts such as coopetition, knowledge sharing and interorganizational dynamics in the venture capital sector. The main aim of conducting this study is to examine the importance of interorganizational coopetition and knowledge flows among VC firms. In relation with coopetition, coopeting firms coordinate and share knowledge with each other to learn, sustain, and grow. Hence, sharing knowledge is an important concept in coopetition.

Moreover, one more element can be studied under coopetition, i.e., coexistence. Therefore, another essential component reviewed is that interorganizational coopetition is affected by collaborative basis because firms interact with each other and compete to converge their goals. It is found that coopetitive dynamics lead to improved performance in firms through innovation of products and services when combined with knowledge. Moreover, the role of venture capital networks is vital in the development of new ventures and startups. The empirical insights will be based on the identification of knowledge gaps, investigating the role of coopeting VC firms in the sustainable development of new ventures.