The Role of Chief Marketing Officers for Venture Capital Funding: Endowing New Ventures with Marketing Legitimacy

  • Research on new ventures has indicated that poorly conducted marketing is among the main reasons for new venture failure. To acquire urgently needed initial funding, new ventures strive to conform to investors’ expectations of appropriate marketing capabilities because these capabilities may endow them with legitimacy in the eyes of potential investors. Drawing on organizational legitimacy and human resource theory, the authors argue that the characteristics of the chief marketing officer (CMO) may endow new ventures with marketing legitimacy. Employing a two-stage selection hazard rate analysis to simultaneously account for potential selection bias and right-censored observations, the authors analyze a comprehensive data set of 2,945 high-technology new ventures. Bearing in mind that this research is a first exploratory attempt to illuminate the role of marketing for new venture funding using correlational secondary data, the results indicate that CMO education, marketing experience, and industry experience are positively related toResearch on new ventures has indicated that poorly conducted marketing is among the main reasons for new venture failure. To acquire urgently needed initial funding, new ventures strive to conform to investors’ expectations of appropriate marketing capabilities because these capabilities may endow them with legitimacy in the eyes of potential investors. Drawing on organizational legitimacy and human resource theory, the authors argue that the characteristics of the chief marketing officer (CMO) may endow new ventures with marketing legitimacy. Employing a two-stage selection hazard rate analysis to simultaneously account for potential selection bias and right-censored observations, the authors analyze a comprehensive data set of 2,945 high-technology new ventures. Bearing in mind that this research is a first exploratory attempt to illuminate the role of marketing for new venture funding using correlational secondary data, the results indicate that CMO education, marketing experience, and industry experience are positively related to the likelihood of funding. Moreover, the relationships between CMO characteristics and funding are contingent on task-related uncertainty and industry legitimacy. These findings provide initial insights for entrepreneurs, venture capitalists, and public policy makers.show moreshow less

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Metadaten
Author:Christian Homburg, Alexander HahnORCiD, Torsten Bornemann, Philipp Sandner
DOI:https://doi.org/10.1509/jmr.11.0350
ISSN:0022-2437
Parent Title (English):Journal of Marketing Research
Publisher:SAGE Publications
Document Type:Article
Language:English
Date of first Publication:2013/10/01
Reviewed:Begutachtet/Reviewed
Release Date:2024/11/25
Volume:51
Issue:5
Pagenumber:20
First Page:625
Last Page:644
institutes:Fakultät Betriebswirtschaft
Research Themes:Digitalisierung & Künstliche Intelligenz
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