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Strategic effects of corporate venture capital investments

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  • Anokhin, Sergey
  • Wincent, Joakim
  • Oghazi, Pejvak

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.

Suggested Citation

  • Anokhin, Sergey & Wincent, Joakim & Oghazi, Pejvak, 2016. "Strategic effects of corporate venture capital investments," Journal of Business Venturing Insights, Elsevier, vol. 5(C), pages 63-69.
    • Handle: RePEc:eee:jobuve:v:5:y:2016:i:c:p:63-69
    DOI: 10.1016/j.jbvi.2016.04.002
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    References listed on IDEAS

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    Cited by:

    1. Bugl, Benjamin M. & Balz, Frank P. & Kanbach, Dominik K., 2022. "Leveraging smart capital through corporate venture capital: A typology of value creation for new venture firms," Journal of Business Venturing Insights, Elsevier, vol. 17(C).
    2. David Bendig & Simon Hensellek & Julian Schulte, 2024. "Beneficial, Harmful, or Both? Effects of Corporate Venture Capital and Alliance Activity on Product Recalls," Entrepreneurship Theory and Practice, , vol. 48(1), pages 35-70, January.
    3. Cabral, Joseph J. & Kumar, M.V. Shyam & Park, Haemin Dennis, 2024. "The value of a reputation for sustaining commitment in interfirm relationships: The inclusion of corporate venture capitalists in investment syndicates," Journal of Business Venturing, Elsevier, vol. 39(3).
    4. Fabien Guimtrandy & Thierry Burger-Helmchen, 2022. "The Pitch: Some Face-to-Face Minutes to Build Trust," Administrative Sciences, MDPI, vol. 12(2), pages 1-14, April.
    5. Kok-Bing Poh & Fang-Yi Lo & Kun-Huang Huarng & Ing. Tatiana Masárová, 2024. "Legitimacy theory for digitalization and international strategy of new venture capitalization," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 3349-3372, December.
    6. Anokhin, Sergey Alexander & Morgan, Todd, 2023. "CEO duality and tenure, and the adoption of goal ambidexterity in corporate venture capital," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
    7. Hannes Maxin, 2018. "Corporate Venture Capital im Bankensektor: Eine Fallstudie," ZfKE – Zeitschrift für KMU und Entrepreneurship, Duncker & Humblot, Berlin, vol. 66(2), pages 71-89.
    8. Shuwaikh, Fatima & Dubocage, Emmanuelle, 2022. "Access to the Corporate Investors' Complementary Resources: A Leverage for Innovation in Biotech Venture Capital-Backed Companies," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    9. Enkel, Ellen & Sagmeister, Veronika, 2020. "External corporate venturing modes as new way to develop dynamic capabilities," Technovation, Elsevier, vol. 96.
    10. Patrick Haslanger & Erik E. Lehmann & Nikolaus Seitz, 2023. "The performance effects of corporate venture capital: a meta-analysis," The Journal of Technology Transfer, Springer, vol. 48(6), pages 2132-2160, December.

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