01942nas a2200133   4500008004100000245010300041210006900144260000900213520138200222653003201604100002601636700001701662856012901679       2017                        eng d00aThe Dynamics of Advice-Giving by Venture Capital Firms: Antecedents of Managerial Cognitive Effort0 aDynamics of AdviceGiving by Venture Capital Firms Antecedents of  c20173 aThis study investigates what leads managers to allocate constrained<br>the cognitive effort towards new versus familiar aspects of a business. We<br>explore this question in the context of venture capitalists’ (VCs) advice-giving<br>to their portfolio companies on business topics on which they have<br>advised other ventures in the past, versus on topics new to the VC that<br>may be outside their areas of expertise. We use both demand-side<br>(venture-driven) and supply-side (VC-driven) perspectives to build a novel<br>theory about the antecedents of cognitive effort underlying advice-giving.<br>By empirically testing our theory using a novel dataset, we find that both<br>perspectives explain important aspects of advice-giving dynamics for VCs.<br>This supports the idea that VCs, facing dynamic environments and capacity<br>constraints, definitely respond to stimuli from ventures, but also that VCs<br>change their behavior as they accumulate experience in ways that reflect<br>expanding confidence in their ability to add value and concerns about overextension<br>of their efforts, depending on the valence of VC experience. Our<br>findings provide novel insights to the antecedents of cognitive effort and to<br>research on the VC-venture relationship by exploring the dynamics of how<br>these advice-giving relationships evolve over time as VCs gain experience.10aStrategy & Entrepreneurship1 aGerasymenko, Violetta1 aEggers, J.P.  u/biblio/dynamics-advice-giving-venture-capital-firms-antecedents-managerial-cognitive-effort