Reputation, dynamic capabilities, and the global footprint of corporate venture capital programs

In a sample of 163 corporations observed over a course of four years, we study the joint impact of reputation and dynamic capabilities on the international expansion of corporate venture capital (CVC) programs. Our findings suggest that CVC reputation positively affects the global footprint of CVC programs, and that dynamic capabilities positively moderate this relationship. The results are robust to alternative operationalizations of reputation and dynamic capabilities. A post-hoc analysis suggests that different facets of the CVC reputation contribute to the observed effects. Specifically, a reputation for experience and a reputation for involvement with portfolio ventures positively affect the global footprint of a CVC program. At the same time, a reputation for misconduct with respect to intellectual property suppresses internationalization of CVC programs. The effects of reputations for involvement and misconduct are positively moderated by dynamic capabilities of corporate investors, whereas the effect of reputation for experience is not affected by dynamic capabilities.