Transferability of the venture capital model to the corporate context: implications for the performance of corporate venture units

Hill, Susan A., Maula, Markku V., Birkinshaw, Julian and Murray, Gordon C. (2009) Transferability of the venture capital model to the corporate context: implications for the performance of corporate venture units. Strategic Entrepreneurship Journal, 3 (1). pp. 3-27. ISSN 1932-4391

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Abstract

While recent literature has advocated the transfer of venture capital (VC) practices and structures to corporate venture (CV) units, the wisdom of this advice has not been subject to rigorous empirical scrutiny. We test the implications of the VC model for CV unit performance using a longitudinal database combining survey, archival and survival data on 95 CV units. VC model elements of high-powered incentives, autonomous organization, investment syndication, investment staging, and specialization were each associated with higher CV unit performance. Critically, different elements of the VC model predicted improvements in either strategic or financial performance in CV units. Survival of the CV unit was strongly associated with employing the VC model, partially mediated by enhanced performance.

Item Type:	Article
Official URL:	http://sej.strategicmanagement.net/
Additional Information:	© 2009 Strategic Management Society
Divisions:	Management
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor
JEL classification:	D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior G - Financial Economics > G2 - Financial Institutions and Services > G24 - Investment Banking; Venture Capital; Brokerage; Rating Agencies M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M13 - Entrepreneurship M - Business Administration and Business Economics; Marketing; Accounting > M2 - Business Economics > M21 - Business Economics O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O32 - Management of Technological Innovation and R&D
Date Deposited:	02 Feb 2010 15:12
Last Modified:	13 Sep 2024 22:38
URI:	http://eprints.lse.ac.uk/id/eprint/26922

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