Venture Capitalists' Role in New Venture Internationalization

Explanations of how new ventures grow have tended to rely on either behavioral or resource-based arguments. We examine the inter-dependence of resources and aspirations in firm growth. By studying the role of venture capitalists as resource providers, we explore the impact of venture capitalists' aspirations and the heterogeneity of resources provided on internationalization of new ventures. Based on 18 in-depth case studies, we construct a conceptual framework outlining common patterns of how resource provisioning by venture capitalists influence international growth. We find that heterogeneity in the resources provided positively enhances the scale of internationalization. The implications for theories of resources and entrepreneurial behavior are discussed