Configuring a corporate venturing portfolio to create growth value: Within-portfolio diversity and strategic linkage
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.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Garner, Jacqueline L. & Nam, Jouahn & Ottoo, Richard E., 2002. "Determinants of corporate growth opportunities of emerging firms," Journal of Economics and Business, Elsevier, vol. 54(1), pages 73-93.
- Gaurab Bhardwaj & John C. Camillus & David A. Hounshell, 2006. "Continual Corporate Entrepreneurial Search for Long-Term Growth," Management Science, INFORMS, vol. 52(2), pages 248-261, February.
- Winters, Terry E. & Murfin, Donald L., 1988. "Venture capital investing for corporate development objectives," Journal of Business Venturing, Elsevier, vol. 3(3), pages 207-222.
- Robinson, Kenneth Charles, 1999. "An examination of the influence of industry structure on eight alternative measures of new venture performance for high potential independent new ventures," Journal of Business Venturing, Elsevier, vol. 14(2), pages 165-187, March.
- Kee H. Chung & Mingsheng Li & Linda Yu, 2005. "Assets in Place, Growth Opportunities, and IPO Returns," Financial Management, Financial Management Association, vol. 34(3), Fall.
- Jacquemin, Alexis P & Berry, Charles H, 1979. "Entropy Measure of Diversification and Corporate Growth," Journal of Industrial Economics, Wiley Blackwell, vol. 27(4), pages 359-69, June.
- Knight, Russell M., 1989. "Technological innovation in Canada: A comparison of independent entrepreneurs and corporate innovators," Journal of Business Venturing, Elsevier, vol. 4(4), pages 281-288, July.
- Tsai, Kuen-Hung & Wang, Jiann-Chyuan, 2008. "External technology acquisition and firm performance: A longitudinal study," Journal of Business Venturing, Elsevier, vol. 23(1), pages 91-112, January.
- Yang, Yi & Narayanan, V.K. & Zahra, Shaker, 2009. "Developing the selection and valuation capabilities through learning: The case of corporate venture capital," Journal of Business Venturing, Elsevier, vol. 24(3), pages 261-273, May.
- Sorrentino, Mario & Williams, Mary L., 1995. "Relatedness and corporate venturing: Does it really matter?," Journal of Business Venturing, Elsevier, vol. 10(1), pages 59-73, January.
- Alvin K. Klevorick & Richard C. Levin & Richard R. Nelson & Sidney G. Winter, 1993.
"On the Sources and Significance of Interindustry Differences in Technological Opportunities,"
Cowles Foundation Discussion Papers
1052, Cowles Foundation for Research in Economics, Yale University.
- Klevorick, Alvin K. & Levin, Richard C. & Nelson, Richard R. & Winter, Sidney G., 1995. "On the sources and significance of interindustry differences in technological opportunities," Research Policy, Elsevier, vol. 24(2), pages 185-205, March.
- Shrader, Rodney C. & Simon, Mark, 1997. "Corporate versus independent new ventures: Resource, strategy, and performance differences," Journal of Business Venturing, Elsevier, vol. 12(1), pages 47-66, January.
- Miles, James A. & Ezzell, John R., 1980. "The Weighted Average Cost of Capital, Perfect Capital Markets, and Project Life: A Clarification," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 15(03), pages 719-730, September.
- Scott Shane, 2001. "Technological Opportunities and New Firm Creation," Management Science, INFORMS, vol. 47(2), pages 205-220, February.
- J. Myles Shaver, 1998. "Accounting for Endogeneity When Assessing Strategy Performance: Does Entry Mode Choice Affect FDI Survival?," Management Science, INFORMS, vol. 44(4), pages 571-585, April.
- Svenja C. Sommer & Christoph H. Loch, 2004. "Selectionism and Learning in Projects with Complexity and Unforeseeable Uncertainty," Management Science, INFORMS, vol. 50(10), pages 1334-1347, October.
- Shepherd, Dean A. & Douglas, Evan J. & Shanley, Mark, 2000. "New venture survival: Ignorance, external shocks, and risk reduction strategies," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 393-410.
- Siegel, Robin & Siegel, Eric & MacMillan, Ian C., 1988. "Corporate venture capitalists: Autonomy, obstacles, and performance," Journal of Business Venturing, Elsevier, vol. 3(3), pages 233-247.
- Yew Kee Ho & Mira Tjahjapranata & Chee Meng Yap, 2006. "Size, Leverage, Concentration, and R&D Investment in Generating Growth Opportunities," The Journal of Business, University of Chicago Press, vol. 79(2), pages 851-876, March.
- Li, Yong & Mahoney, Joseph T., 2006. "A Real Options View of Corporate Venture Capital Investment Decisions: An Empirical Examination," Working Papers 06-0108, University of Illinois at Urbana-Champaign, College of Business.
- Dushnitsky, Gary & Lenox, Michael J., 2006. "When does corporate venture capital investment create firm value?," Journal of Business Venturing, Elsevier, vol. 21(6), pages 753-772, November.
- Christoph H. Loch & Christian Terwiesch & Stefan Thomke, 2001. "Parallel and Sequential Testing of Design Alternatives," Management Science, INFORMS, vol. 47(5), pages 663-678, May.
- Satish Nambisan, 2002. "Complementary Product Integration by High-Technology New Ventures: The Role of Initial Technology Strategy," Management Science, INFORMS, vol. 48(3), pages 382-398, March.
- McGrath, Rita Gunther, 1995. "Advantage from adversity: Learning from disappointment in internal corporate ventures," Journal of Business Venturing, Elsevier, vol. 10(2), pages 121-142, March.
- Zahra, Shaker A., 1991. "Predictors and financial outcomes of corporate entrepreneurship: An exploratory study," Journal of Business Venturing, Elsevier, vol. 6(4), pages 259-285, July.
- Thornhill, Stewart & Amit, Raphael, 2001. "A dynamic perspective of internal fit in corporate venturing," Journal of Business Venturing, Elsevier, vol. 16(1), pages 25-50, January.
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Thomas Keil, 2004. "Building External Corporate Venturing Capability," Journal of Management Studies, Wiley Blackwell, vol. 41(5), pages 799-825, 07.
- Phan, Phillip H. & Foo, Maw Der, 2004. "Technological entrepreneurship in emerging regions," Journal of Business Venturing, Elsevier, vol. 19(1), pages 1-5, January.
- Zahra, Shaker A., 1996. "Technology strategy and new venture performance: A study of corporate-sponsored and independent biotechnology ventures," Journal of Business Venturing, Elsevier, vol. 11(4), pages 289-321, July.
- J. A. Hausman, 1976.
"Specification Tests in Econometrics,"
185, Massachusetts Institute of Technology (MIT), Department of Economics.
- Li, Yong, 2008. "Duration analysis of venture capital staging: A real options perspective," Journal of Business Venturing, Elsevier, vol. 23(5), pages 497-512, September.
- Nalin Kulatilaka & Enrico C. Perotti, 1998. "Strategic Growth Options," Management Science, INFORMS, vol. 44(8), pages 1021-1031, August.
- Brush, Candida G. & Vanderwerf, Pieter A., 1992. "A comparison of methods and sources for obtaining estimates of new venture performance," Journal of Business Venturing, Elsevier, vol. 7(2), pages 157-170, March.
- Dushnitsky, Gary & Lenox, Michael J., 2005. "When do incumbents learn from entrepreneurial ventures?: Corporate venture capital and investing firm innovation rates," Research Policy, Elsevier, vol. 34(5), pages 615-639, June.
When requesting a correction, please mention this item's handle: RePEc:eee:jbvent:v:26:y:2011:i:4:p:489-503. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.