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The limited interest of carmakers in corporate venture capital: insights from a mature industry

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  • Marina Flamand
  • Vincent Frigant

Abstract

A whole corpus of literature has evolved to discuss the motivation of industrial companies in creating corporate venture capital (CVC) funds. However, most studies have been limited to technology sectors that are particularly active in this domain. The present paper seeks to analyse a mature economic sector – automobiles – which should have good reason to take an interest in CVC. A panel comprising 13 of the world’s leading carmakers reveals that (1) few operate any CVC funds; (2) the ones that do tend not to be very active; and (3) investments basically correspond to strategic motivations of the kind that literature already envisions. These findings suggest that CVC studies in particular sectors should take a closer look at institutional isomorphism and consider how inter-firm relationships are organised.

Suggested Citation

  • Marina Flamand & Vincent Frigant, 2017. "The limited interest of carmakers in corporate venture capital: insights from a mature industry," Venture Capital, Taylor & Francis Journals, vol. 19(4), pages 263-283, October.
    • Handle: RePEc:taf:veecee:v:19:y:2017:i:4:p:263-283
    DOI: 10.1080/13691066.2017.1335959
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    1. Lerner, Josh, 2012. "The Architecture of Innovation: The Economics of Creative Organizations," OUP Catalogue, Oxford University Press, number 9780199639892.
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    Cited by:

    1. Jeon, Euiju & Maula, Markku, 2022. "Progress toward understanding tensions in corporate venture capital: A systematic review," Journal of Business Venturing, Elsevier, vol. 37(4).
    2. 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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