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The Relationship between Venture Capital Dimensions and Innovation Performance among Start-Ups in the Eastern Cape (International Review of Management and Marketing)

Research paperInternational Review of Management and MarketingNovember 202613 pages20 min readZizile Mbombo, Miston MapurangaOriginal source
Key number
<5%
Eastern Cape share of South Africa's VC deal flow p.2
Largest segment
1–3 years
Largest age group of operational start-ups p.5

Summary

  • Formal venture capital investment in the Eastern Cape accounts for <5% of South Africa's total venture capital deal flow.p.2
  • The research sample comprised 385 start-up founders, owners, and managers in the Eastern Cape.p.1
  • Market Access Support proved to be the most significant predictor of innovation performance with a path coefficient of β = 0.503.p.8

Key insights

  1. Market Access Support is the strongest direct predictor of start-up innovation performance among venture capital dimensions (β = 0.503).p.8
  2. Networking and Partnerships showed a statistically significant positive relationship with start-up innovation performance (β = 0.163, P = 0.025).p.8
  3. VC-enabled research and development investment demonstrated a substantial indirect effect on networking and partnerships with an f² of 1.617.p.7
  4. Investor expertise in industry exerted a strong indirect effect on VC-enabled research and development investment with an f² of 1.272.p.7

Pages

Topics and entities

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