Венчурный капитал для финансирования инновационных проектов в странах БРИКСVenture Capital for Funding Innovation Projects in BRICS Countries

Venture capital (VC) has flourished in BRICS over the last decade, yet the weak institutional environment in these countries impedes the sustainable growth of VC and the development of innovations. Although existing research has established the adverse effect of institutional voids on VC management practices, theoretical considerations in the field remain context-free. This study tries to close the gap by providing a theoretical framework of VC decision-making in the institutional context. To achieve the research goal the mixed method research design is used. The first stage, a quantitative meta-analysis, confirms the significant positive effect of institutional variables on country’s VC investments, by drawing on data samples from 30 studies. It shows that effect holds after the correction for publication bias and controlling for characteristics of the previous studies. The second stage is a grounded theory analysis of interviews with 30 VCs in BRICS. It yields three core categories which are further linked in the theoretical framework. The first category, a VC decision-making process, reveals non-investment-related phases, which are overlooked in the existing models. The second category, Institutional Awareness, shows how VCs adjust their decision-making in response to the ambiguity in EM. The third element, Decision-Making Agility, represents the practices adopted at VC funds to mitigate the adverse effect of weak institutions, including Risk Anticipating, Flexibility Ensuring and Environment Supplementing. Finally, a theoretical framework of VC decision-making in the institutional context conceptualizes the role of country’s institutional development in VC investing. It shows how the effect of institutional variables on VC investments is mediated by Institutional Awareness and mitigated by Decision-Making Agility at each stage of the proposed decision-making process. This framework defines specific capabilities critical for the successful operation of VCs in BRICS, which presents a valuable practical implication for investment managers.