Venture Capital Industry Emergence in Transition Economies – Polish Experience

Abstract

Although there is consensus on the increasing role of emerging and developing economies in global markets, the literature on the mechanisms contributing to their growth remains still limited. The research aims to contribute to knowledge by exploring and understanding the process of transformation from a centrally planned economy into a market based economy. This transformation process is analysed from the perspective of a Venture Capital industry emerging and developing in Poland. The research focuses on the dynamics of particular factors and their impact on a specific set of stakeholders. In order to take a sufficiently broad contextual view, an organizational theory approach was employed. The Venture Capital industry was treated as a community of organizations which are connected by direct or indirect relationships. The interpretative framework was provided by two leading organizational theories: Institutional theory and Resource Dependence theory. The research is qualitative, and is guided by a specially designed framework for collecting and analysing the data. The primary data were collected though semi structured interviews with Venture Capital industry stakeholders of different types, and with different roles in the process. The research contributes to knowledge at three levels. Firstly, it addresses the literature gap on emergence of the Venture Capital industry in Poland. Secondly, it contributes to an understanding of the process of the emergence of a Venture Capital industry and economic transformation. Thirdly, findings may contribute to policy recommendations formulated to accelerate effective development in financial services.