Private Equity, Strategic Support, and Entrepreneurial Performance
A Contextualized Review with Evidence from Morocco
DOI:
https://doi.org/10.23882/emss26331Palavras-chave:
Private equity, Governance, Strategic support, Startup performance, MoroccoResumo
This article examines the role of private equity in the governance, strategic support and performance of startups, focusing specifically on the Moroccan context. The purpose of the study is to identify the degree to which private equity investors add value beyond finance as well as how this involvement ultimately impacts future performance of the investee firm. A review of thirty peer-reviewed academic studies, which cover various national contexts and adopt complementary theoretical and empirical strategies, underpins the study.
The analysis shows that capital provision is a necessary but not sufficient condition for startup development. Governance mechanisms can achieve a structuring lever effect, particularly by decreasing information asymmetries, framing decision-making processes and strengthening managerial discipline. Formal mechanisms like investor participation in governing bodies have positive effects on financial and organizational performance while informal mechanisms – those based on trust and relational capital – improve cooperation and the stability of investor-manager relationships.
Strategic support stands out as a major determinant of value creation. The active involvement of investors in strategic decisions, the professionalization of organizational structures, and access to partner networks contribute significantly to startup strategic performance and growth. These effects are particularly pronounced in emerging economies, where institutional constraints amplify the importance of non-financial forms of support.
Relational governance, strategic investor involvement, and entrepreneurs’ social capital are important performance factors for private equity fund-portfolio firm relationships but require enhanced integration and contextualization.
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Direitos de Autor (c) 2026 Soufiane Riyad, Khalid EL OUAFA
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