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This paper delineates some basic trends and patterns of European foreign equity venture formations in Turkey over the 1996‐2003 period.

Drawing on a Turkish Government database, key statistics on European equity venture formations in Turkey are examined across several dimensions: trends in FDI over time, country of origin of investment, sector of investment, size of investment, geographical location and foreign equity shareholding.

A structured analysis of the dataset and government statistical publications makes it possible to ascertain patterns with respect to FDI dimensions. FDI operations in Turkey are dominated mainly by European and US MNEs. The analyses also revealed that new FDI operations have changed the structural composition of overall FDI activity in Turkey. Another finding is that European equity venture formations tend to be located in the concentrated industries and also in the relatively fast growing industries. It is shown that there exist some differences among European investors when they are classified by country of origin. There are also locational differences by sector, entry date and country of origin. It appears that as European investors gain experience of the host country market, their entry mode may change over time.

While the findings cast further light on the nature and pattern of European FDI activity in Turkey, it would be particularly useful in future research to investigate the core dimensions of the activity recorded in the dataset reported on here, in terms of motives for a particular mode of entry, forms of management control and performance outcomes by means of primary data collection from the parents and management of European equity ventures. The examined relationships set out in the present study are essentially univariate, so they cannot gauge which of the dimensions are likely to be more important in identifying trend and patterns of European FDI in Turkey, which constitutes a limitation of the survey.

These findings cast new light on the nature and pattern of European FDI activity in Turkey where there is a paucity of systematic information.

Expects that the entry of Turkey into the customs union with Europe in January 1996 will spur the flow of European foreign direct investment (FDI) to Turkey with European companies being attracted by the relatively fast‐growing Turkish market. With Turkey likely to become an ever‐more important location for European FDI, provides a timely account of European equity venture formation in Turkey. Explains that, since 1980, the trend of European FDI in Turkey has been commensurate with the legal and institutional reforms which have been undertaken to encourage FDI. Drawing on a Turkish Government database, examines several dimensions of European FDI: trends in FDI over time; country of origin of investment; sector of investment; capital size of investment; geographical location and company type. Claims that this set of characteristics provides a more detailed account than previously has been made of European FDI in Turkey.

This study, conducted in a field setting, examines the pattern of budget and cultural controls across Korean firms and Korean joint ventures with U.S. and European firms in South Korea—a nation with a dominant Confucian philosophy divergent from the modern capitalist philosophy that dominates Anglo‐American approaches to control. The empirical results provide support for the hypothesis that differences exist in the pattern of controls between U.S. and European joint ventures. While European joint ventures exhibited stronger forms of budget control, U.S. joint ventures exhibited a stronger form of cultural controls. Cultural controls were evidenced by lower levels of power distance exhibited by the presence of younger, higher educated Korean managers who have been in a joint venture for a longer period of time. Interview data was used to further examine aspects of control. The education and experience of Korean managers and (self‐) selection were found to facilitate the adoption of foreign parent controls. Accordingly, this paper provides a contribution to theory development on the transfer of parent company management control practices to joint ventures in a specific Asian nation context.

There is arguably a balance between exploration and exploitation within a commercial organization which leads to sustainable growth and value creation. Exploratory activities are associated with search, innovation, risk-taking and experimentation. Activities, such as selection, implementation and execution are considered exploitative in nature. We show that the governance structures and mechanisms that are typically employed in venture capital-backed companies ensure an optimum balance between the exploratory behavior of entrepreneurs and the exploratory focus of venture capitalists. New players in the venture capital cycle, such as crowdfunding platforms and corporate venture capital units, often fail to understand the importance of the interaction and interrelation between the apparently opposing exploratory and exploitative activities. However, collaborative venture capital models that are currently emerging appear to restore the necessary equilibrium in the “new” venture capital cycle.

The purpose of this paper is to focus on the possibilities and limitations of venture capital formation in Bosnia and Herzegovina and Macedonia where there has been a lack of success and benefits of small- and medium-sized enterprises (SMEs) from this type of financing.

The paper provides a rationale for specific methodological choices and justifies its choice. Both quantitative and qualitative methods were employed. The methods section (research design) explains the entry criteria for the study population, specific imaging techniques and methods of data analysis.

Venture capital invest in companies in the beginning to achieve an above average return on investment. Unfortunately, there are no officially registered venture capital funds in Bosnia and Herzegovina. For the venture capital funds to operate, it is necessary to adopt regulations governing this area, to create a favorable tax system and introduce a cash basis for VAT calculation for SMEs. The majority of respondents in the research believe that in the establishment of venture capital funds would provide one of the greatest supports by the governments of these countries, analyzing the economic situation in these countries, it is apparent that there is an under-developed legal and tax system, which does not support SMEs. In order to attract foreign and domestic investors, and form venture capital funds, it is necessary to create a favorable business environment.

The paper contains novel information and insight into VC funds in two transition economies of Bosnia and Herzegovina and Macedonia.

Purpose – We investigate whether the partnership behavior of Japanese partners in their joint ventures (JVs) with European partners in Europe can be explained by the Trojan horse hypothesis (THH) view or by the cooperative specialization (CS) view. The THH view assumes that Japanese firms establish JVs to steal the knowledge of their partners and dissolve JVs as soon as they have achieved their goals. The CS view, on the other hand, argues that Japanese firms set up JVs to achieve CS and that these JVs will be stable.

Methodology – First, we derive implications of both the THH and the CS views for the longevity of JVs. Second, we make a census of all Japanese–European JVs manufacturing in 1987 and analyze their evolution to 1996. Third, we count how many of these JVs have evolved in ways that are predicted by the THH and the CS views. We argue that a particular view is supported if the number of JVs following the predicted path is larger than that following alternative paths.

Findings – We find that the partnership behavior of Japanese firms is more consistent with a CS view than with a THH view.

Limitations – This is a conservative test of THH behavior since JVs can dissolve for other reasons than the knowledge-stealing behavior of their Japanese partners.

Value of chapter – This is, as far as we know, the only study that has investigated the evolution of the population of Japanese–European JVs in Europe and has derived implications for the validity of the THH and CS views of JVs.

Strategic alliances are an important feature of the aerospace industry and many studies have sought to evaluate their performance. Most have taken a policy perspective exploring the economic and political benefits claimed for collaboration of this type. The perspective is a reflection of the political origins of many aerospace alliances. This study seeks to evaluate, from a managerial perspective, one of the newer alliances established on a strictly commercial basis. It focuses on BMW Rolls‐Royce GmbH, one of a small number of truly European alliances. The study concludes that, although Rolls‐Royce bought out its German partner after a decade of operation, the alliance was a success. The two engines developed by the alliance over this period were a technical success, overall sales were well on target and the alliance was about to break even. In addition, the study concludes that the alliance formed a key element in Rolls‐Royce’s successful strategy to extend its product portfolio, a strategy that elevated the company to second place in the global aero engine market.

Purpose – We investigate whether the partnership behavior of Japanese partners in joint ventures (JVs) with European partners in Europe is better explained by the Trojan Horse Hypothesis (THH) than by the cooperative specialization (CS) view. THH assumes that Japanese firms establish JVs to steal the knowledge of their partners and dissolve JVs as soon as they have achieved their goals. The CS view, however, argues that Japanese firms set up JVs to achieve CS and that these JVs will be long-lived.

Methodology – We first derive implications of both the THH and the CS views for the longevity of JVs. We make a census of all two-partner Japanese–European JVs manufacturing in Europe in 1987 and record their evolution to 1996. We count how many of these JVs have evolved in ways that are predicted by the THH and the CS view. We argue that a particular view is supported if the number of JVs following the predicted path is larger than the number of those following alternative paths.

Findings – We find that the partnership behavior of Japanese firms is more consistent with a CS than with a THH view.

Limitations – This is a conservative test of THH behavior since JVs can dissolve for other reasons than the knowledge-stealing behavior of their Japanese partners.

Value of the Paper – This is, as far as we know, the only study that has investigated the evolution of the population of Japanese–European JVs in Europe and has derived implications for the validity of the THH and CS views of JVs.

The paper aims to investigate the views of Estonian private equity and venture capitalists about the valuation of high‐growth companies and compare these with theoretical recommendations found in corporate finance and venture capital literature.

The analysis was carried out by using the case study methodology. Structured interviews were conducted in order to present the material for analysis. The dominant model of the case study analysis is exploratory, using an explanation‐building and pattern‐matching technique.

Main findings of the empirical study show that Estonian private equity and venture capitalists make the valuation somewhat differently compared to Western European and American ones. Some findings do not confirm the suggestions made by scientists.

Some of the required data were considered to be a business secret. The research could be extended to a broader sample.

The findings can be used by the managers of private equity and venture capital funds for choosing appropriate cost of capital and valuation model for venture capital projects.

The paper is the first empirical paper, investigating how Estonian private equity and venture capitalists make the valuation of target companies.

While extant research has increasingly examined minority entrepreneurs, less attention has been paid to Eastern European immigrant entrepreneurs and the role that marketing agility and risk propensity play in their resilience and survival in Nordic countries. This paper aims to highlight the importance of these factors for Eastern European immigrant entrepreneurs in the developed Nordic economy of Denmark.

This paper adopts the dynamic capabilities view as a theoretical framework and uses a qualitative research approach with interviews as the main data collection method. The empirical sample comprises 12 entrepreneurs originating from Hungary, Slovakia, Latvia, Lithuania and Romania, who operate in Denmark.

The findings show that contrary to prior studies that have highlighted a reliance among the migrant entrepreneurial community on ethnic networks as their dominant target market, Eastern European immigrant entrepreneurs located in Denmark, in contrast, focused on attracting Danish consumers as their target market audience. Leveraging multiple networks was therefore found to be critical to the survival of these immigrant ventures. Additionally, the entrepreneurs' marketing agility, underpinned by their optimistic approach, growth ambitions and passion for entrepreneurship, was found to play a pivotal role in their survival. Finally, despite the stable institutional environment in Denmark and the ease of doing business (both of which are influential factors in shaping the risk propensity and risk perception of entrepreneurs), the authors found immigrant entrepreneurs' risk propensity to be rather low, which was contrary to the expectations.

The current paper is one of the first studies that explicitly analyzes the roles of marketing agility and risk propensity in the resilience and survival of the ventures of relatively skilled immigrant entrepreneurs from Eastern Europe in a developed Nordic economy (Denmark). The paper's findings also challenge the notion associated with immigrant entrepreneurial ventures being primarily focused on ethnic customers or enclaves. The paper also specifies the peculiarities of marketing agility in immigrant entrepreneurial contexts and solidifies the importance of diverse networks in immigrant business survival and development.