How Relational Capital and Commitment Shape Value Creation in Venture Partnerships

What is it about?

This study explores how relational capital and organizational commitment together shape perceived performance in venture capitalist–entrepreneur relationships. Relational capital captures the quality of the partnership—trust, social interaction, and goal congruence—that fosters cooperation and mutual understanding. Organizational commitment reflects enduring dedication to the venture, shown through loyalty, sustained effort, and persistence in pursuing shared goals despite challenges. Using data from U.S.-based venture capital partnerships, the study finds that both relational capital and organizational commitment significantly enhance perceived performance. High levels of trust and frequent social interaction facilitate knowledge sharing and coordinated decision-making, while aligned goals reduce friction and improve joint problem-solving. Organizational commitment complements these effects by promoting perseverance and a shared long-term orientation, ensuring that both VCs and entrepreneurs stay invested in the relationship’s success despite uncertainty or setbacks. These findings demonstrate that the success of venture capital relationships depends on more than financial capital or formal contracts. By cultivating trust, communication, shared goals, and genuine commitment, venture partners can build stronger collaborations that translate into sustainable performance and value creation.

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Photo by Vitaly Gariev on Unsplash

Photo by Vitaly Gariev on Unsplash

Why is it important?

This research is unique in integrating relational capital—comprising trust, social interaction, and goal congruence—with organizational commitment as complementary drivers of venture success. It provides empirical evidence that the social and attitudinal dimensions of VC–entrepreneur relationships are central to performance, extending relational governance perspectives in entrepreneurship and venture finance. The study is particularly timely given the continued growth of venture ecosystems in the United States, where collaboration and trust-based governance are vital in high-risk, innovation-driven environments. It highlights that sustainable value in venture partnerships stems not only from capital investment but also from enduring commitment and high-quality relationships that strengthen cooperation and resilience over time.