The effect of entrepreneurial behavior on corporate venture capital with a fintech approach with the mediating role of risk taking

Majidi Khameneh, Shiva; Davari, Ali; Amir, Mohammadzadeh

doi:10.22034/jtd.2022.698475

The effect of entrepreneurial behavior on corporate venture capital with a fintech approach with the mediating role of risk taking

Document Type : Research Paper

Authors

shiva majidi khameneh ¹

Ali Davari ²

mohammadzadeh amir ³

¹ PhD Student in Entrepreneurship، Organizational, Department of Entrepreneurship, Qzvin Branch Islamic Azad University, Qazvin, Iran

² Faculty member and assistant professor of Entrepreneurship Department, Faculty of Entrepreneurship, University of Tehran, Tehran Province, Iran

³ PhD in Department, Qazvin Branch, Islamic Azad University, Qazvin, Iran

https://doi.org/10.22034/jtd.2022.698475

Abstract

The significant growth in scholarly research on CVC investments may be partly related to the volume of participant behaviors over many years. In this situation, there will inevitably remain only companies whose managers are equipped with risk-taking skills, therefore, the entrepreneurial behavior of employees is described as one of the prominent aspects in facing competitive advantage. The aim of the present study is to investigate the effect of entrepreneurial behavior on corporate venture capital with the mediating role of risk taking. This research is applied in terms of purpose and descriptive-correlation in terms of nature and method. The statistical population of this research includes 144 people from the general office of Maskan Bank. In this research, Cochran's sampling formula was used to calculate the sample size. In this formula, with a possible accuracy of about 5% and assuming the highest dispersion of the studied traits, the sample size is 104 people. A questionnaire tool was used to collect data. Structural equation method and SmartPLS software were used to check research hypotheses. The obtained results show that when middle level managers perform entrepreneurial behavior, they have to influence their subordinates to imitate their performance behaviors, which ultimately leads to superior service delivery. In addition, the findings of this study can provide insights for policymakers in formulating and implementing human capital development policies and allow banks to benchmark themselves to improve their ability to create value. Considering the increase in global competition and the complexity of the market, it is hoped that this study will help the banking sector to develop effective strategies in stimulating entrepreneurial behaviors among its managerial employees. Hence, for established organizations such as the banking sector, it is critical to foster entrepreneurial behavior, especially at all middle management levels, in order to enhance performance and improve competitive advantage.

Keywords

Venture capital

corporate venture capital

entrepreneurial behavior

risk taking

Palizdar, K.; Madani, S.; Asgari Nia, M.; "Investigating the behavioral and environmental factors affecting the attraction of venture capitalists to invest in knowledge-based companies", Al-Zahra University Economic Development Policy Quarterly, year 6, Vol. 1, ISSN 17, pp. 94-124, 2017.
Payandeh, R.; Shahbazi, M.; Manteghi, M.; "The future scenario of Iranian banks in the face of fintech", financial research, Vol. 23, Issue 2, pp. 294-328, 1400.
Riahi, H.; "Risk management in the venture capital industry", National Conference on Venture Capital, Vol. 2, 1385.
Shirazi, B.; "Integrating customers in innovation initiatives with the help of open innovation approach: production and selection of innovative product ideas", Summer Technology Growth, Vol. 12, Issue 47, pp. 38-48, 2015.
Fallah Shams, Lial lastani, Mir faiz; "Asl carpet maker, Dehsan; Sarabi Nobakht, Samira. (2009) Examining the effect of experience on risk-taking, overconfidence and collective behavior of managers of investment companies in Tehran Stock Exchange", Stock Exchange Quarterly, Vol. 3, Issue 12, pp. 25-42, 2009.
Ghorbani, M.; Abri, M. A.; Eslahi, M.; "Investigating the relationship between the climate of innovation in the organization and the entrepreneurial behavior of the employees of Saderat Bank Mashhad", Management Future Studies Quarterly, 27, Issue 107, pp. 33-45, 2016.
Karmi, S.; Dehghan, A.; Khodadadi, A.; "The role of decision-making dimensions and risk-taking on the performance of financial managers (case study: banking industry)", Scientific journal of financial knowledge of securities analysis, Vol. 13, Issue 47, pp. 33-50, 2019.
Kowich, M.; Pour Ebadolhan; F.; Falahi, H.; Ebrahimi; "The effect of banking competition on risk-taking in Iran's banking industry", economic researches and policies, Vol. 29, Issue 99, pp. 243-276, 1400.
Baboui, Mohammad, S.; Banj, A.; "Venture investment in small entrepreneurial companies", International Conference on Applied Researches in Management and Industrial Engineering, Vol. 1, p 1-15, 2017.
Mohammad Kazemi, R.; Kardar, S.; Pouriz, M.; "Identification and ranking of service marketing mix factors in Iran's banking industry with an emphasis on financial and investment services (using Dimtel technique)", Investment Knowledge, Vol. 11, Issue 44, pp. 203-218, 1401.
Moghimi, S. M.; Ramadan, M.; Management research paper, second volume, Rah dan Publishing House, Tehran, 2018.
Wafah khah, H.; Zarifi, F.; "Identifying factors affecting organizational entrepreneurial behavior and its role in implementing entrepreneurial strategy in Qavamin Bank", Behavioral Studies in Management, Vol. 11, Issue 22, pp. 97-107, 2019.
Palizdar, K.; Madani, S.; Asgari Nia, M.; "Investigating the behavioral and environmental factors affecting the attraction of venture capitalists to invest in knowledge-based companies", Al-Zahra University Economic Development Policy Quarterly, year 6, Vol. 1, ISSN 17, pp. 94-124, 2017.
Payandeh, R.; Shahbazi, M.; Manteghi, M.; "The future scenario of Iranian banks in the face of fintech", financial research, Vol. 23, Issue 2, pp. 294-328, 1400.
Riahi, H.; "Risk management in the venture capital industry", National Conference on Venture Capital, Vol. 2, 1385.
Shirazi, B.; "Integrating customers in innovation initiatives with the help of open innovation approach: production and selection of innovative product ideas", Summer Technology Growth, Vol/ 12, Issue 47, p 38-48, 2015.
Drover, W.; Busenitz, L.; Matusik, S.; Townsend, D.; Anglin, A.; Dushnitsky, G.; "A review and road map of entrepreneurial equity financing research", Journal of Management, Vol. 43, No. 6, pp. 1820-1853, ISSN 0149-2063, 2017.
Gholizadeh, S.; Mohammadkazemi, R.; "International entrepreneurial opportunity: A systematic review, meta-synthesis, and future research agenda", Journal of International Entrepreneurship, pp. 1-37, 2022.
Hu, Songcui; Gu, Qian; Xia, Jun; probilemistic search of the emebedded firm:the joint effects of performance feedback and network positions on venture capital firms risk taking, 2021.
Jamali, B.; Mohammadkazemi, R.; Yadollahi, J.; Mobini Dehkordi, A.; et al; “Theories of opportunity creation and effective entrepreneurial actions in opportunity creation context”, Journal of Decision Science Letters, Vol. 7, No 1, pp. 443 -454, 2018.
Kmil, N. L.; Nasurdin, A.; "Entrepreneuial Behaviour in Malaysian Commercial Banks", Australian Journal of Business and Economic Studies, Vol. 2, No. 1, pp. 35-44, 2016.
Koening, L.; Burghof, H.; "The Investment Style Drift Puzzle and Risk-Taking in Venture Capital", Review of Corporate Finance, Vol. 2, Forthcoming, 2021.
Maula, M.; Murray, G.; "Corporate Venture Capital and the Creation of US Public Companies: The Impact of Sources of Venture Capital on the Performance of Portfolio Companies", Creating Value, Winners in the New Business Environment, pp. 161-183, 2017.
Mobaraki, M. H.; Esfandabad, H. M.; Safavinejhad, S.; Kazemi, R. M.; "Entrepreneurial team formation the success of the companies", International Journal of Innovative Research in Management, Vol. 1, No. 2, pp. 58-70, 2013.
Mohammad kazemi, R.; Kardar, S.; Pouriz, M.; Identification and ranking of the marketing mix of services in the banking industry, using DEMATE, 2020.
Mohammad kazemi, R.; PournasrKhakbaz, P.; Zarei, B.; "Identifying Effective Organizational Factors on Corporate Entrepreneurship in Tehran Municipality's Department of Urban Services",‎ Information Management and Business Review, Vol. 3, No. 6, pp. 328-335, 2011.
Mohammmad kazemi, R.; Nikraftar, H.; Yadollahi Farsi, J.; Ahmadpour, M.; "The Concept of International Entrepreneurial Orientation in Competitive Firms: A Review & A Research Agenda", International Journal of Entrepreneurship, Vol. 23, Issue 3, 2019.
Park, J.; Shin, H.; "The Effect of Venture Capital Investment on Corporate Innovation Performance", Asia-Pacific Journal of Business Venturing and Entrepreneurship, Vol. 15, Issue 1, pp. 1-15, 2020.
Rohm, P.; "Exploring the landscape of corporate venture capital: a systematic review of the entrepreneurial and finance literature", Management Review Quarterly, Vol. 68, pp. 279–319, 2018.
Esther Olanrewaju, S.; Oluwatoyin, P. O.; "Organizational Factors on Entrepreneurial Development in Selected Micro-Finance Banks in Oyo State", Nigeria, Editura Fundaţiei România de Mâine, Issue:4, pp. 347-363, 2021.
Wenhong, Z.; Liuying, F.; "The impact of entrepreneurial thinking system on risk‐taking propensity and entrepreneurial behavior", Journal of Chinese Entrepreneurship, Vol. 2, No. 2, pp. 165-174, 2010.
Wonglimpiyarat, J.; "Challenges and dynamics of FinTech crowd funding: An innovation system approach", The Journal of High Technology Management Research, Vol. 29, Issue 1, pp. 98-108, 2018.
Zampetakis, LA.; Beldekos, P.; Moustakis, VS.; "Day-to-day entrepreneurship within organisations: The role of trait Emotional Intelligence and Perceived Organisational Support", European Management Journal, Vol. 27, Issue 3, pp. 165–175, 2009.
Zhang, R.; McCarthy, K. J.; Wang, X.; "Two's company, three's a crowd: The impact of corporate venture capital unit's investment partners on the corporate investor's innovation performance", Managerial and Decision Economics, 2022.