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Non-linear Relationship Between IP Proportion of Startup and Financing Performance: Moderating Role of Founder's Education Level  

Chung, Doohee (Handong Global University, School of Global Entrepreneurship & ICT)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.14, no.5, 2019 , pp. 1-11 More about this Journal
Abstract
Financing plays an important role in the survival and growth of startups. This study investigates key factors that improve startup financing performance. To this end, we analyze the relationship between the proportion of intellectual property and the financing performance. In addition, this study also examine the impact of the founder's education level on the financing of startups, and the moderating effect of the founder's education level on the relationship between intellectual property proportion and financing. Based on the survey data of 331 startups, this study found that the proportion of intellectual property and the financing performance have an inverted U-shaped nonlinear relationship. While the founder's education level has a positive impact on the financing performance, it negatively moderate the relationship between the intellectual property proportion and the financing performance. Through these findings, this study suggests that it is necessary to maintain an adequate proportion of intellectual property in order to maximize startup financing performance. The higher education level of founder enhances the startup financing. Since the founder's education level weaken the effect of intellectual proporty's effect on startup financing, however, startups need to control the proportion of intellectual property to improving financing according to the founder's education level. Based on signal theory, this study proposes a new strategy of intellectual property to enhance startup financing performance.
Keywords
Technological Entrepreneurship; Intellectual Property; Financing; Founder Education Level;
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Times Cited By KSCI : 3  (Citation Analysis)
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