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003			OSt
005			20190821170022.0
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100			_aBacon-Gerasymenko, Violetta _934310
245			_aThe Dynamics of Advice Giving by Venture Capital Firms: Antecedents of Managerial Cognitive Effort
300			_a1660-1688 p.
520			_aThis study investigates what leads managers to allocate constrained cognitive effort toward new versus familiar aspects of a business. Specifically, we explore advice giving by venture capital firms (VCs) to their portfolio companies, distinguishing between business topics on which a VC has advised other ventures in the past and topics new to the VC that may be outside its areas of expertise. We use both demand-side (venture-driven) and supply-side (VC-driven) perspectives to offer a novel theory about the antecedents of cognitive effort underlying advice giving. Empirical tests in a unique data set of French VCs show that both perspectives explain important aspects of advice-giving dynamics for VCs. VCs facing dynamic environments and capacity constraints strongly respond to stimuli from ventures, but VCs also adjust their behavior as they accumulate experience in ways that reflect both expanding confidence in their ability to add value and concerns about overextension of their efforts, depending on the valence of VC experience. Our findings provide important insights to the antecedents of cognitive effort and to research on the VC–venture relationship by exploring the dynamics of how advice-giving relationships evolve over time as VCs gain experience.
653			_aManagerial cognitive effort, , , ,
653			_aManagerial cognition
653			_aAdvice giving
653			_aVenture capital
653			_aLearning from experience
653			_aCognitive constraints
700			_aEggers, J. P. _933181
773	0		_029017 _974854 _aDEBORAH E. RUPP _dWEST LAFAYETTE SAGE PUBLICATION 2012 _o55510430 _tJOURNAL OF MANAGEMENT _x 0149-2063
942			_2ddc _cJA-ARTICLE