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Configuring a corporate venturing portfolio to create growth value: Within-portfolio diversity and strategic linkage

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  • Lin, Shu-Jou
  • Lee, Ji-Ren
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    Abstract

    This study attempted an empirical investigation of whether and how a corporate investor can enhance future growth opportunities through corporate venturing investments (CVIs). Different from previous studies, we assessed the firm-level performance impact of a CVI portfolio with a focus on two configuration features: within-portfolio diversity and strategic linkage. Based on a longitudinal dataset of CVIs made by Taiwanese technology-based companies, we found that increasing CVI portfolio diversity and maintaining strategic linkages, particularly vertical ones, between the portfolio companies and the investing firm's core business will add value to the investing firm's future growth. Implications for CVI strategy and opportunities for future research are also discussed.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Venturing.

    Volume (Year): 26 (2011)
    Issue (Month): 4 (July)
    Pages: 489-503

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    Handle: RePEc:eee:jbvent:v:26:y:2011:i:4:p:489-503

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    Web page: http://www.elsevier.com/locate/jbusvent

    Related research

    Keywords: Corporate venturing portfolio Portfolio configuration Portfolio effects;

    References

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