Outstanding paper Award

Citation

(2008), "Outstanding paper Award", International Journal of Emerging Markets, Vol. 3 No. 4. https://doi.org/10.1108/ijoem.2008.30103daa.003

Outstanding paper Award

Article Type: Awards for Excellence From: International Journal of Emerging Markets, Volume 3, Issue 4

The venture capital investment process in emerging markets: Evidence from Central and Eastern Europe

Darek KlonowskiDepartment of Business Administration, Brandon University, Brandon, Canada

Purpose – The purpose of this paper is to focus on the investigation of the venture capital investment process in the emerging markets of Central and Eastern Europe (CEE), including Hungary, Poland, the Czech Republic, Slovakia, Romania, and Russia. The study aims to describe the mechanics by which venture capital firms operating in the CEE region process deals.Design/methodology/approach – The paper is based on a two-phase interview interaction process with venture capitalists operating in the CEE region. In the first semi-structured (exploratory) phase of the study, 14 venture capitalists agreed to participate in one-hour interview and aimed at discussing their venture capital process. In the second phase of the study (confirmatory), 24 venture capital firms commented on the actual fit of the proposed nine-stage model into their past investments. Findings – The study has two conclusions. Firstly, the study confirms the existence of a nine-stage venture capital investment model, comprised of deal origination, initial screening, feedback from the investment committee and due diligence Phase I, feedback from the investment committee (due diligence Phase I), pre-approval completions, formal approvals and due diligence Phase II, deal completion, monitoring, and exit. Secondly, the proposed model defines the venture capital process in terms of three channels of activity: document channel, information channel, and decision channel.Originality/value – The study is important for at least four reasons. Firstly, the study focuses on the investigation of the entire venture capital process. Previous research in the area focuses on some specific facets of the venture capital process. Secondly, the paper investigates the connection between decision-making, information gathering and written communication within a venture capital fund. Thirdly, the study focuses on the most recent period of development of the CEE industry. Many venture capital firms only recently crystallized their venture capital process. Lastly, the study proposes areas of further research for academics and makes suggestions for practitioners.

Keywords: Eastern Europe, Emerging markets, Investments, Venture capital

www.emeraldinsight.com/10.1108/17468800710824518

This article originally appeared in Volume 2 Number 4, 2007, pp. 361-82, of International Journal of Emerging Markets, Editor: Yusaf H. Akbar

Highly Commended Papers

International Journal of Emerging Markets"Born foreign firms in Cambodia: exploration of mode of entry decisions of firms originating from the greater Mekong sub-region"Scott HipsherVol. 3 No. 1, 2007

Outstanding Special Issue Award

Small to medium enterprises in emerging markets

Guest editors: Rangamohan V. Eunni, Williamson College of Business Administration, Youngstown State University, Ohio, USA, Candida G. Brush, Babson College, Massachusetts, USA, and Rammohan R. Kasuganti, Williamson College of Busines Administration, Youngstown State University, Ohio, USAInternational Journal of Emerging Markets, Vol. 2, No. 2, 2007

www.emeraldinsight.com/Insight/viewContainer.do;jsessionid6BB62BC14F4B9FB50DE0FD52B8A678 24?containerTypeIssue&containerId24938

The challenge of compiling a themed issue on the subject chosen is recognised by the guest editors who comment that

• •

  While these countries no doubt share a commonality in introducing market reforms and erecting business-friendly market structures in recent years, variances arising from unique historical experiences, political legacies and cultural antecedents results in a diverse mosaic of regulatory and economic milieus that have a significant impact on the operation of SMEs

That they have done so is a credit to them and the editor of the recently launched International Journal of Emerging Markets, to whom they pay tribute.

The guest editors had the advantage of being able to draw upon contributions made at an Academy of International Business forum held in Cleveland, Ohio, in October 2005. The outcome was a collection of extensively revised and reviewed articles of a wide ranging international flavour.

The authors of the articles were open about the limitation of their research; often resulting from the difficulty of collecting primary data, but give helpful directions to further research. This publication will serve as a stimulus to researchers who will be working in this evolving field.