Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 53, No. 6, pp.1505-1536
ISSN: 1226-1874 (Print)
Print publication date 31 Dec 2024
Received 16 Jul 2024 Revised 20 Aug 2024 Accepted 03 Sep 2024
DOI: https://doi.org/10.17287/kmr.2024.53.6.1505

From Single-Sided to Two-Sided: The Role of Experience and Networks in Venture Capital Law Firm Intermediation

Kwangjun An ; Yonghwan Lee
(First Author, Corresponding Author) McGill University, Desautels Faculty of Management kwangjun.an@mcgill.ca
(Co-Author) University of Seoul, School of Business Administration yonghwan.lee1@uos.ac.kr
단면에서 양면으로: 벤처 캐피탈 법률 회사의 중개에 있어서 경험과 네트워크의 역할
안광준 ; 이용환
(주저자, 교신저자) 맥길대학교
(공저자) 서울시립대학교


Copyright 2024 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Most theories of market intermediation focus on how established intermediaries with representation experience facilitate market transactions to create value. Little research has examined how young intermediaries gain such experience and carve out entrepreneurial opportunities to represent exchange parties. Using longitudinal data on 323 U.S.-based venture capital law firms that begin representing startups to secure financing, this study investigates how intermediaries leverage their initial experiences to develop dual-sided capabilities. We provide and find support for the argument that intermediaries can transition smoothly by developing transferable value on the sell-side (representing startups) and expanding their networks on the buy-side (representing venture capital firms). By drawing an analytical distinction between buy-side representation and sell-side representation in intermediation, this research presents two-sided intermediation as an evolving developmental process, emphasizing the critical role of experience and learning as catalysts for this evolution.

Keywords:

two-sided intermediation, experience and learning, entrepreneurial opportunities, representation expansion, venture capital law firms

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∙ The author Kwangjun An is an Assistant Professor of Strategy and Organization at the Desautels Faculty of Management, McGill University. His research focuses on technology management, organizational change and adaptation, and strategic communication. He employs multi-method empirical approaches in his research, including social network analysis, large-scale textual analysis, and archival data analysis.

∙ The author Yonghwan Lee is a lecturer of management at the University of Seoul, Republic of Korea. He received his PhD in Strategy & Organization from the Desautels Faculty of Management at McGill University in Canada. His research interests include corporate development, technological innovation, organizational change and design, social networks, and big data analysis.