Status in a Strange Land : Context-Dependent Value of Status in Cross-Border Venture Capital

While recent literature has depicted status as an intangible asset that is firm-specific and mobile, we have a limited understanding of whether status confers advantage in a way similar to other intangible assets. This study examines the macro-structural contingencies that influence the marginal value of firm status as firms expand to new markets. Building on the literatures on status and social approval assets, as well as globalization and international management, we hypothesize that two conditions influence how valuable home-country status will be in a given host country: the interconnectedness of the home and host countries and their relative position in the global network. We test our hypotheses in a study of 187 VC-backed biotechnology ventures in 19 countries between 1990 and 2006