When does corporate venture capital add value for new ventures?
Article first published online: 3 MAY 2011
Copyright © 2011 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 33, Issue 1, pages 1–22, January 2012
How to Cite
Park, H. D. and Steensma, H. K. (2012), When does corporate venture capital add value for new ventures?. Strat. Mgmt. J., 33: 1–22. doi: 10.1002/smj.937
- Issue published online: 9 NOV 2011
- Article first published online: 3 MAY 2011
- Accepted manuscript online: 25 APR 2011 09:31AM EST
- Manuscript Revised: 15 APR 2011
- Manuscript Received: 16 SEP 2009
- corporate venture capital;
- technology entrepreneurship;
- complementary assets;
- transaction costs;
- new venture performance
New ventures face a trade-off when considering corporate venture capital (CVC) funding. Corporate investors can provide complementary assets that enhance the commercialization of new venture technologies. However, tight links with a particular corporate investor has drawbacks and may constrain new ventures from accessing complementary assets from diverse sources in an open market. Taking this trade-off into account, we explore conditions under which CVC funding is beneficial to new ventures. Using a sample of computer, semiconductor, and wireless ventures, we find that CVC funding is particularly beneficial for new ventures when they require specialized complementary assets or operate in uncertain environments. Copyright © 2011 John Wiley & Sons, Ltd.