Get access

How Prior Corporate Venture Capital Investments Shape Technological Alliances: A Real Options Approach

Authors

  • Vareska Van de Vrande,

    Corresponding author
    1. Rotterdam School of Management, Erasmus University
      Vareska Van de Vrande, tel.: +31-10-408-2847; e-mail: vvrande@rsm.nl, to Wim Vanhaverbeke at wim.vanhaverbeke@uhasselt.be.
    Search for more papers by this author
  • Wim Vanhaverbeke

    Corresponding author
    1. Hasselt University
      Vareska Van de Vrande, tel.: +31-10-408-2847; e-mail: vvrande@rsm.nl, to Wim Vanhaverbeke at wim.vanhaverbeke@uhasselt.be.
    Search for more papers by this author

Vareska Van de Vrande, tel.: +31-10-408-2847; e-mail: vvrande@rsm.nl, to Wim Vanhaverbeke at wim.vanhaverbeke@uhasselt.be.

Abstract

This article investigates how prior corporate venture capital (CVC) relationships between two firms affect the likelihood of their subsequently entering a strategic alliance. Creating a portfolio of CVC investments provides the investing firm with a set of opportunities that can be pursued once the technological and market uncertainty have been reduced. If the technology appears to be promising, a follow-on investment, such as a strategic alliance, is made to ensure the transfer of the technological knowledge. This article shows that prior CVC investments can play a role in the formation of strategic alliances and investigates the conditions under which they are most likely to do so.

Get access to the full text of this article

Ancillary