Abstract:
With a global shift towards a knowledge economy, intangible knowledge such as those derived from
entrepreneurs have become increasingly valuable. In order to extract and maximize potential from
these intangible assets, venture capitals (VCs) are often sought by entrepreneurs to provide both
financial and non-financial value-add. However, in reality, study findings have indicated that this may
not be the case. Therefore, this study aimed to investigate the VC-CEO interaction in New Zealand
through the knowledge transfer perspective to understand value-add from both perspectives. In
addition, the study also sought to understand the barriers and enablers to knowledge transfer
between VCs and their CEOs, while capturing any potential mitigation strategies.
To achieve this, the research adopted a qualitative research strategy to gather data from
fourteen semi-structured interviews split evenly amongst VCs and CEOs. The study used an
abductive approach to theory and found the results to be consistent with prior literature on the VC’s
value-add. The study found an additional VC value-add while uncovering the value-add from CEOs,
generating a bi-directional view on value-add. Based on individual propensity and capability, key
barriers and enablers to knowledge transfer between VCs and their CEOs were divided into
willingness, external input, competence, and learning.
The study provides two theoretical frameworks to organize theoretical value-add and reflect the
multidimensional nature of barriers and enablers. Findings from this study offer new insights into the
bi-directional value-add, while enriching the knowledge transfer research landscape in New Zealand.
This study also offers practical insights for managers and CEOs involved in joint ventures to optimize
the transmission and uptake of valuable knowledge in their daily operations.