Reaping the Fruits of Legitimacy: Effects of a New Ventures' Pre-IPO Alliance Portfolio in the Market for IPOs

Date of Completion

January 2012


Business Administration, Management




A new venture undertaking an initial public offering (IPO) is dependent on investor decisions for a successful public offering. As a new venture lacks history, the public often turns to its external associations to infer its quality. This dissertation focuses on the alliance association, and drawing on the legitimacy perspective, presents a model which argues that different characteristics of the new venture's pre-IPO alliance portfolio, including size, stability, breadth, and prominence, critically determine the venture's IPO performance. Further, the alliance portfolio will impart differential influences on the venture's IPO performance across varying levels of environmental conditions. This dissertation considers the contingent role of environmental factors related to the equity market environment. These relationships are investigated in a sample of 123 new ventures with pre-IPO alliances. ^