Strategic effects of corporate venture capital investments

Abstract

This paper analyzes the strategic effects of corporate venture capital investments. Specifically, by studying the deals of 163 corporations over a four-year period, it documents the effects of driving, emerging, enabling, and passive investments on the pool of innovative opportunities available to incumbents and the scale efficiency gains they experience as a result of these investments. The study suggests that by making driving and enabling investments, incumbents position themselves in the industry to take advantage of increased pools of innovative opportunities and improve scale efficiency yields. At the same time, emerging and passive investments are detrimental for both of the strategic goals considered in this paper.

Original language	English
Pages (from-to)	63-69
Number of pages	7
Journal	Journal of Business Venturing Insights
Volume	5
DOIs	https://doi.org/10.1016/j.jbvi.2016.04.002
Publication status	Published - 1 Jun 2016
Externally published	Yes

Keywords

Corporate venture capital
Driving, emerging, enabling, passive investments
Innovation
Scale efficiency gains
Strategic benefits

ASJC Scopus subject areas

Business and International Management
Management of Technology and Innovation

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10.1016/j.jbvi.2016.04.002

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title = "Strategic effects of corporate venture capital investments",

abstract = "This paper analyzes the strategic effects of corporate venture capital investments. Specifically, by studying the deals of 163 corporations over a four-year period, it documents the effects of driving, emerging, enabling, and passive investments on the pool of innovative opportunities available to incumbents and the scale efficiency gains they experience as a result of these investments. The study suggests that by making driving and enabling investments, incumbents position themselves in the industry to take advantage of increased pools of innovative opportunities and improve scale efficiency yields. At the same time, emerging and passive investments are detrimental for both of the strategic goals considered in this paper.",

keywords = "Corporate venture capital, Driving, emerging, enabling, passive investments, Innovation, Scale efficiency gains, Strategic benefits",

author = "Sergey Anokhin and Joakim Wincent and Pejvak Oghazi",

year = "2016",

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doi = "10.1016/j.jbvi.2016.04.002",

language = "English",

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AU - Oghazi, Pejvak

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AB - This paper analyzes the strategic effects of corporate venture capital investments. Specifically, by studying the deals of 163 corporations over a four-year period, it documents the effects of driving, emerging, enabling, and passive investments on the pool of innovative opportunities available to incumbents and the scale efficiency gains they experience as a result of these investments. The study suggests that by making driving and enabling investments, incumbents position themselves in the industry to take advantage of increased pools of innovative opportunities and improve scale efficiency yields. At the same time, emerging and passive investments are detrimental for both of the strategic goals considered in this paper.

KW - Corporate venture capital

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KW - Innovation

KW - Scale efficiency gains

KW - Strategic benefits

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