Attention to alliances: The role of attention, relational embeddedness, and concentrated governance in the success of U.S. venture capital syndicates

Abstract

Extending the Attention-based View (ABV) to firms’ alliances, this study examines the relationship between the degree of attention to a focal alliance by alliance members and its success. We also examine how two contextual factors of collaboration, relational embeddedness and concentration of governance, affect this relationship in the context of U.S. venture capital syndicates. We find that attention increases the chances of syndicate success, that relational embeddedness of partners enhances the positive effect of attention, and that concentrated syndicate governance negatively moderates the effect of attention. This study joins the nascent stream of literature that emphasizes the importance of organizational factors in outcomes of inter-firm alliances and contributes to the integration of insights from the ABV and alliance research traditions to build a more comprehensive understanding of alliance success factors.