THE IMPACT OF STRATEGY AND STRUCTURE ON THE PERFORMANCE OF CORPORATE VENTURE CAPITAL UNITS

Organisational Structure ◽

Corporate Venturing ◽

Organic Hybrid ◽

Corporate Venture ◽

Strategy And Structure ◽

The range of organisational designs and their interplay with the objectives of corporate venture capital (CVC) units has yet to be fully understood. Using primary qualitative data collected from 20 CVC units, the authors show that although strategy does not always consciously drive structural design, there are clear patterns of beneficial organisational structure that support achievement of particular objectives. Furthermore, the authors discuss the implications of objectives and organic, hybrid and mechanistic structures on CVC performance, contributing both to the CVC literature and the practice of corporate venturing.

The Impact of Corporate Venture Capital on the Branding Efforts of New Technology Firms

SSRN Electronic Journal ◽

10.2139/ssrn.2296402 ◽

2013 ◽

Author(s):

Ikenna S. Uzuegbunam ◽

Brandon Ofem ◽

Satish Nambisan

Keyword(s):

Venture Capital ◽

New Technology ◽

Technology Firms ◽

Corporate Venture ◽

Corporate Venture Capital and the Creation of US Public Companies: The Impact of Sources of Venture Capital on the Performance of Portfolio Companies

Creating Value ◽

10.1002/9781405164092.ch9 ◽

2017 ◽

pp. 161-183

Author(s):

Markku Maula ◽

Gordon Murray

Keyword(s):

Venture Capital ◽

Public Companies ◽

Corporate Venture ◽

The Creation ◽

RECONCILING COMPETING INSTITUTIONAL LOGICS IN CORPORATE VENTURE CAPITAL UNITS

International Journal of Innovation Management ◽

10.1142/s1363919620400046 ◽

2020 ◽

pp. 2040004

Author(s):

MARCEL AHLFÄNGER ◽

MAGDALENA KOHUT ◽

JENS LEKER

Keyword(s):

Venture Capital ◽

Institutional Theory ◽

Institutional Logics ◽

The Other ◽

Organisational Structure ◽

Strategic Objectives ◽

Prior Literature ◽

Corporate Venture

Prior literature highlights the competing institutional logics corporate venture capital (CVC) units have to face due to their intermediary position between the two environments in which they operate — the VC industry and the corporate firm. By conducting an inductive case study of 20 CVC units, we unravel how novel organisational subunits reconcile the conflicting logics in terms of their organisational structure. We show that, instead of fully aligning with one or the other environment, most units form hybrid organisations incorporating elements of both logics. Our data suggest that CVC units tend to follow the hybridisation strategy of selective coupling rather than apply strategies of compromising or decoupling. The type of structure depends on factors on the intra-, inter-organisational and industry level. We further suggest a specific hybridisation pattern that is especially beneficial in the achievement of a unit’s strategic objectives. Our findings contribute to both institutional theory and CVC literature.

CORPORATE VENTURING AND CORPORATE VENTURE CAPITAL

10.4324/9780203443392-13 ◽

1997 ◽

pp. 45-87

Keyword(s):

Venture Capital ◽

Corporate Venturing ◽

Corporate Venture

The Impact of Corporate Venture Capital

10.1007/978-3-322-81468-5 ◽

2003 ◽

Cited By ~ 6

Author(s):

Timo B. Poser

Keyword(s):

Venture Capital ◽

Corporate Venture ◽

Corporate venture capital program autonomy, corporate investors’ attention and portfolio diversification

Journal of Strategy and Management ◽

10.1108/jsma-03-2015-0023 ◽

2016 ◽

Vol 9 (3) ◽

pp. 302-321 ◽

Cited By ~ 3

Author(s):

Yi Yang ◽

Tianxu Chen ◽

Lei Zhang

Keyword(s):

Venture Capital ◽

Negative Relationship ◽

Portfolio Diversification ◽

Investment Portfolio ◽

Content Type ◽

Corporate Venture ◽

Corporate Investors ◽

The Impact ◽

Linear Regressions

Purpose – From the attention-based view, the purpose of this paper is to examine how structural autonomy of a corporate venture capital (CVC) program influences its CVC managers’ investment decisions with regard to investment portfolio diversification. Design/methodology/approach – This study collects data from VentureXpert, Compustat, and the US Patent Office. The final sample consists of 868 CVC portfolio-year observations from 1990 to 2004. Panel linear regressions and hierarchical linear regressions are used in the analysis. Findings – The major finding of this study reveals that that structural autonomy of a CVC program is significantly related to its investment portfolio diversification. In addition to the direct effect, the authors also find that CVC structure autonomy moderates the relationship between corporate investor’s strategic attention and its CVC portfolio diversification. Specifically, when the autonomous level of a CVC program is high, the negative relationship between its parent’s relative growth potentials and CVC portfolio diversification will become positive, and the positive relationship between its parent’s business diversification and CVC portfolio diversification will become negative. Originality/value – The CVC literature has suggested the impact of CVC portfolio diversification on value creation for corporate investors (e.g. Yang et al., 2014), however, few studies have investigated why some corporate investors diversify their portfolio of venture companies while others do not. To fill such a gap, this study identifies antecedents of CVC portfolio diversification such as CVC structural autonomy and corporate investor’s strategic attention as well as their interactive impacts. The finding also provides valuable managerial implications on CVC program designs.