The Role of Venture Capital in Strengthening the Institutional Efficiency of the General Industrial Companies Listed in Amman Stock Exchange: A Case Study

Abstract

Meanwhile, we live in a permanent renewable knowledge-based economy. Venture capital funds are not like other traditional financing companies as they have a pioneering vision which is clear and focused with the desire and the courage to take risks to achieve success on the local and global level. However, its contribution to start-up or -early-stage- companies is not only confined to being a strategic partner in financing them (or their novice projects) but rather it mixes this with its vision, pioneering experience, network relations, professional assistance in management, planning, in order to reach the institutional efficiency at the local and global levels. The study concluded that there is clarity from the managers of the companies that venture capital can provide companies with expertise and modern methods of management and regulations that could enable these companies to develop rapidly and attain its objectives in achieving institutional efficiency at the local and global level. At the same time it can rescue and develop troubled companies as well as attracting new investment to the funded companies.