Venture capital in China: a culture shock for Western investors
Abstract
Purpose
This study seeks to examine the peculiarities of the venture capital market in China and seeks to compare it with Western markets.
Design/methodology/approach
The paper provides insights based on both the practitioner and academic literature in the field.
Findings
It is noted that different cultural norms, corporate governance structures, a lack of appropriate exit strategies, and governmental intervention are important factors that set the markets apart and should be taken into consideration when making venture capital investments in China.
Practical implications
The paper should be of interest to practitioners considering investing in China and to academics doing research in this area.
Originality/value
The paper is to the best of the authors' knowledge the first to provide a detailed and comprehensive review of the Chinese venture capital market.
Keywords
Citation
Pukthuanthong, K. and Walker, T. (2007), "Venture capital in China: a culture shock for Western investors", Management Decision, Vol. 45 No. 4, pp. 708-731. https://doi.org/10.1108/00251740710745999
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited