Venture Review

Recent research reports have shown that empowerment and the delegation of authority (DOA) have not produced the kind of results that were expected in some cases. Other studies have explored the relation between DOA and moderator variables. The present study attempted to examine how relational empowerment i.e. the delegation of authority works more effectively. Empirical data for this study was based on a unique questionnaire survey of small and medium-sized firms regarding their organization and management practices. Statistical analysis was conducted on how DOA as an independent variable would influence dependent variables such as "the will to challenge" and financial performance (the return on assets). Moderator variables such as control activities, belief systems and new venture support activities were also taken under consideration. Results showed that DOA had a partial influence on the employees "will to challenge". Also, some moderator variables were seen as having statistically significant effects on the relation between delegation of authority and dependent variables. Further empirical studies on delegation of authority are needed to better understand the complementary relations among moderator variables.

Key words:Empowerment, Delegation of Authority, Moderator Variables

The law on the Promotion of New Activities by small and medium-sized enterprises was enacted in 2004. Based on this new law, the government will promote many projects as "new-alliance" business comprised of tie-ups between small and medium-sized enterprises, each of which will contribute their competitive features to such alliances.
The purpose of this study is to examine success conditions of the government (SME Agency) designed a new-alliance system, which is called a "policy model", in the following two points.
First, we make a comparison between policy model condition and actually successful new-alliance condition, which is called a "real model". In doing so, we make it clear what kind of condition is necessary for success of new-alliance.
Second, we analyze success conditions of new-alliance from the viewpoint of product life cycle model, especially market introduction stage and growth stage. As success conditions of policy model lucks product life cycle, we elucidate what kind of condition is necessary for success of new-alliance in market introduction stage and growth stage.
Specifically, we explore new-alliance in a stage of introduction and growth in Tohoku area. Therefore, we compare the success conditions of policy model to real model. As research methods, we apply technique of Boolean algebra approach and try rearranging of compound cause and effect condition for new-alliance to be successful.

Key words:success conditions of new-alliance, compare to policy model, from the view point of product life cycle model, Boolean algebra approach

This paper has found new type champions through three case studies of new business development. They are persons who have changed the attitude from/to champion to/from antagonist. This paper also explained the reasons they changed their attitude. They are (1) aggravation of outside environment, (2) claim evasion, and (3) sensitiveness to the intention and interest about the new business.

Key words:New Business Development, Champion, Antagonist, Intraprener

　Until recently, most business management studies of venture enterprises have tended to examine the relationship between the entrepreneur's network, business concept and financing. This paper is a case study of a small, regional art project in the Hiroshima area, managed by students and professors from Hiroshima City University, which started as a small project but eventually grew into a large-scale project which involved actors from various fields.
　The study will analyze differences in management related to small, social value creation focused projects, and general project management. It is based on an action research approach with detailed interviews that took place over the period of one year and are continuing. In our case analysis we found differences between the management of social value creation projects and general project management in the early stages of project funding. Especially, we found that the relationship between business concept and fund raising was not so important. After establishing financial support it took some time to create a business concept that could realize the project's business goals.
　In the future, this study will be extended to include various areas, and continue intensive interviews as well as take a quantitative approach in order to generalize our research findings.

Key words:art project, civic entrepreneur, entrepreneur's network, fund raising, action research

M&A can be a key avenue to grow firms by dynamically reconfiguring their capabilities and enabling them to sustain innovation and adapt to change in the environment. In particular, M&A is effective when intangible assets that are key to innovation are hard to imitate because of corporate inertia or institutional constraints.
Pre-war electricity firms, which were founded by entrepreneurs and which realized fast growth without state backing, resorted to M&A to further growth amid a wave of innovation at the time in hydroelectric power generation technology. Such M&A was aimed at acquiring water rights, which were non-imitable intangible assets essential for the technology, as well as at attaining scale economies and capital. Such M&A constitutes an example of "M&A to innovate," by which firms pursue innovation by dynamically reconfiguring their capabilities. Additionally, this is an early example of M&A in which anti-trust policy and promotion of innovation were balanced.

Key words:Mergers and Acquisitions (M&A), Innovation, Capabilities, Intangible Asset, Public Policy

This paper examines how business relations with customers affect the performance of a startup. The analysis is based on panel data about firms established in 2006. Business relations affect startup performance on the two dimensions: commercial and non-commercial transactions. Regarding the former dimension, those firms which established business relations with the client of the former employer and deal with more customers at startup show a higher survival rate. However, firms which have built business relations at birth do not enjoy higher growth. This implies that survival factors do not guarantee firm growth and that growth depends on efforts for acquiring new clients after startup. Regarding the latter dimension, it is confirmed that those firms which seek referral to new clients for existing customers experience higher growth. Startups require trust to gain new clients. Seeking referral for existing customers can be an effective tool for getting trust.

Key words:Business relations, Survival Factors, Growth Factors

　In this paper, we examine the relationship between the sluggish IPO activity and the quality of IPO firms. We developed proxies of firm quality and found several interesting phenomena using those metrics; (1) the level of quality differs by the listing timing. Currently, stock exchanges seem never allow low quality firms to go public, (2) we could not observe any difference in firms' quality on different junior markets, (3) even for firms with the same level of quality, the actual listing criteria may differ by industry, (4) stock exchanges and underwriters seem to fail to identify potential high-growth firms using their listing criteria. We need to mitigate the information asymmetry to revitalize the market.

Key words:IPO, Quality of firms, Listing criteria

This paper examines the structural change of U.S. venture capitals in this decade, from the point of their investment and fund performance. By using data of individual venture capital funds, it is found that high performance of U.S. venture capital funds is limited to the late 1990s and their low performance continues after the Internet bubble. The major findings are: (1) the gap between high performance funds and other funds is historically large; (2) top-performing venture capital firms continue to gain high fund performance; and (3) high performance of the funds is mainly attributed to great successful IPOs of few specific portfolio companies. The recent low performance reflects the IPO crunch in the U.S. stock market, and the venture capitals try to find their opportunity in emerging countries and new industries.

Key words:venture capital, fund, performance, venture , America