Thesis
Finance beyond funding : the strategic effects of venture capital and corporate dominance on innovation and exit
- Creator
- Rights statement
- Awarding institution
- University of Strathclyde
- Date of award
- 2026
- Thesis identifier
- T17647
- Person Identifier (Local)
- 202055783
- Qualification Level
- Qualification Name
- Department, School or Faculty
- Abstract
- This dissertation explores how financial capital does more than just provide funding—it plays a central role in shaping firm strategy, survival, and innovation. Across three empirical chapters, the study examines how venture capital and corporate dominance affect firm decisions after going public, influence access to early-stage funding, and alter innovation behavior in competitive industries. The findings challenge the idea that finance is a neutral tool, showing instead that it can steer outcomes in powerful and sometimes unintended ways. The first chapter investigates the impact of post-IPO venture capital investment. These investments are often seen as a sign of support and confidence. However, firms that receive them are more likely to leave public markets within a few years. The analysis suggests that even when capital is available, its strategic influence can increase short term pressure and reduce long-term stability. The second chapter turns to the rise of unicorn firms—startups valued at over $1 billion—and their effects on others in the same sector. While unicorns attract investor interest and may signal growth potential, they also concentrate funding and attention, making it harder for smaller startups to secure backing from top-tier investors. This pattern shows how financial visibility can become a barrier to entry, limiting who gets a chance to grow. The third chapter looks at large, dominant firms in China, and how their presence affects innovation among smaller competitors. The results show that these firms can discourage everyday innovation but may promote green innovation by setting industry norms and influencing supply chains. Their strategic weight means they help decide not just what gets made, but what kinds of ideas move forward. Taken together, the three chapters argue that financial and corporate power now shape the paths firms take, often before any product reaches the market. The ability to raise money, stay public, or develop new ideas increasingly depends on how firms are positioned within broader networks of influence. Finance, in this sense, has become part of a firm’s strategy, not just its support system. This research highlights the need to rethink common views about venture capital and firm growth. It shows that funding can open doors, but it can also close them— depending on timing, structure, and who controls the flow. By tracing how capital interacts with strategy, this dissertation offers a grounded look at how financial systems affect who survives, who innovates, and who exits.
- Advisor / supervisor
- Zhang, Hai
- Thapa, Chandra
- Resource Type
- DOI
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PDF of thesis T17647 | 2026-04-15 | Public | Download |