Effects of conformity on success of the firm:The moderated effect of partner diversity on venture capital investments

企業從眾行為對績效的影響：在創業投資中夥伴多樣性的干擾效果

This study examines the determinants of success through the lens of behavioral conformity and partner attributes beyond the firm’s boundaries. Using longitudinal investment data from 1980 to 2008 on venture capital (VC) in the U.S., we adopted logit models in a panel format with random effects. We find some evidence that investing with similar external partners enhances investment performance. We also explore the crucial role partner diversity plays in moderating behavioral conformity and success of the firm. Accessing divergent forms of external knowledge through inter-firm cooperation should curb a firm’s tendency to engage in exaggerated fashionable compliance and improve the quality of organizations’ decision making and subsequent success.