Session 158

Corporate Venture Capital

Track K

Date: Monday, October 8, 2012

 

Time: 08:00 – 09:15

Paper

Room: Meeting Hall V


Session Chair:

  • Manuela Hoehn-Weiss, Oregon State University

Title: Complementarity between Corporate Venture Capital and Research & Development: Impact in Value Creation

Authors

  • Felix Cardenas, University of Lausanne
  • Daniel Oyon, University of Lausanne
  • Antonio Davila, IESE Business School

Abstract: R&D and CVC are important to firms for growth and value creation. R&D and CVC are also attractive to shareholders that anticipate a positive profitable effect. Interestingly, the interaction between CVC and R&D has generated much debate. Some researchers see them as substitutes while others consider them complementary. Our current research state presents evidence that CVC investment, R&D expenditure, and the CVC X R&D interaction are associated with the creation of firm value. In this research proposal we take a qualitative and quantitative approach to disentangle the interaction between CVC and R&D.

Title: Fostering Research in the US and Abroad: A Global Analysis of CVCs and Startup Innovation

Authors

  • Elisa Alvarez-Garrido, University of South Carolina
  • Gary Dushnitsky, London Business School

Abstract: Over the last decade, corporations became an increasingly important source of financing for innovative startups across a wide array of industries, in the US but also abroad. This paper investigates the consequences of Corporate Venture Capital (CVC) investments: Do strategically-oriented CVCs affect startups' research productivity? Do CVC-backed startups affect innovative outcomes differently in the US and abroad? We study these questions using a longitudinal sample of 1,065 biotechnology ventures, founded from 1990 to 2003; 591 are US ventures and 474 from abroad. We find that CVC investing has a greater effect on publications in the US than abroad, and partial evidence of a greater effect on patents for US firms as well. In summary, our findings highlight the innovation implications of CVC investors across countries.

Title: The Interplay of Legal, Temporal, and Social Defenses in Corporate Venture Capital Relationship Formation

Authors

  • Benjamin Hallen, University of Washington
  • Riitta Katila, Stanford University

Abstract: While inter-organizational relationships offer many benefits, they may also expose firms to dangers such as misappropriation and exploitation by partners. However, when protected by particular defense mechanisms, firms may be able to lower the risk of “dangerous relations”, i.e. attractive ties that nevertheless expose them to dangers. Yet the interplay and the relative strengths of the main defense mechanisms remain unclear. In a longitudinal study of over 1,200 inter-organizational equity investment relationships between young firms and established corporations and the related qualitative interviews, we identify and examine three key defenses for young firms: legal, temporal, and social. We find that different types of social defenses can both amplify and diminish a young firm’s reliance on legal and temporal defenses.

Title: Too Much of a Good Thing?: How Alliances and Corporate VC Affect New-Venture Internationalization

Authors

  • Manuela Hoehn-Weiss, Oregon State University
  • Joseph LiPuma, EMLYON Business School

Abstract: Drawing on insights from the resource-based view and institutional theory, we examine how functional-type alliances, alliances with large industry partners, CVC, and interactions between alliances and CVC influence international intensity. Initial results support the notion that alliances and CVC appear to be supplements, rather than complements, which has important implications for resource-constrained new ventures evaluating different types of partnerships. We extend research on the identification of resources relating to and the effect of different types of partnerships on new-venture internationalization behavior, and we provide insights for entrepreneurs evaluating international strategies.

All Sessions in Track K...

Sun: 08:00 – 09:15
Session 126: Entrepreneurship & Stakeholders - The Future Research Agenda
Sun: 09:30 – 10:45
Session 127: Teaching Strategic Entrepreneurship
Sun: 11:15 – 12:30
Session 128: Poverty, Informal Firms & Strategic Entrepreneurship
Sun: 15:15 – 16:30
Session 157: Financing Entrepreneurial Ventures
Session 161: Entrepreneurial Growth
Mon: 08:00 – 09:15
Session 158: Corporate Venture Capital
Session 175: Austrian Economics & Creative Destruction
Mon: 09:30 – 10:45
Session 178: Institutional Theory & New Ventures
Session 180: Pushing the Bounds of Agency Theory
Mon: 13:30 – 14:45
Session 159: Exploration, Exploitation, and Ambidexterity
Session 169: Spinoffs, Spinouts, and Labor Mobility
Mon: 16:30 – 17:45
Session 162: New Venture Strategy & Innovation
Session 163: Cognitive Perspectives
Tue: 08:00 – 09:15
Session 164: IPOs
Session 170: Emerging Markets
Tue: 11:00 – 12:15
Session 160: Corporate Venturing and Intrapreneurship
Session 179: Social Networks within and across Firms
Tue: 14:15 – 15:30
Session 166: Institutional Aspects of Entrepreneurship
Session 167: Firm Boundaries
Tue: 15:45 – 17:00
Session 174: Social Networks & Entrepreneurship
Session 176: Value Capture & Appropriability
Tue: 17:30 – 18:45
Session 168: Uncertainty, Ambiguity, and Sense-Making
Session 173: New Venture Creation


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