IDEAS home Printed from https://ideas.repec.org/a/men/journl/v5y2019i2p185-199.html
   My bibliography  Save this article

Corporate Venturing Evaluation: How Start-Up Performance is Measured in Corporate Venturing During the Collaboration Phase

Author

Listed:
  • Steven Rottmann

    (Mendel University in Brno, Czech Republic)

Abstract

In the context of business performance assessment, current research often focuses on evaluating effects of innovation projects with start-ups. Subsumed as corporate venturing (CV), investigating the impact of these projects is becoming increasingly important. Thus, the number of studies on the ex-post value of corporate venturing projects (CVP) has steadily increased over the last years. In contrast, this research attempts to cover the evaluation of CVP in the period between from the contract conclusion to termination. By conducting interviews, this research primarily aims at identifying indicators applied for evaluating CVP performance during the cooperation of subjects in the automotive industry. The results obtained show that evaluation is mostly based on subjective criteria and that no formal indicators are implemented to manage CVP during the collaboration phase. This research contributes to literature by revealing practically applied CVP performance indicators during the collaboration phase and by discussing their weaknesses.

Suggested Citation

  • Steven Rottmann, 2019. "Corporate Venturing Evaluation: How Start-Up Performance is Measured in Corporate Venturing During the Collaboration Phase," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 5(2), pages 185-199.
    • Handle: RePEc:men:journl:v:5:y:2019:i:2:p:185-199
    DOI: 10.11118/ejobsat.v5i2.179
    as

    Download full text from publisher

    File URL: http://ejobsat.cz/doi/10.11118/ejobsat.v5i2.179.html
    Download Restriction: free of charge
    File URL: http://ejobsat.cz/doi/10.11118/ejobsat.v5i2.179.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.11118/ejobsat.v5i2.179?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Daniel Reimsbach & Bastian Hauschild, 2012. "Corporate venturing: an extended typology," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 23(1), pages 71-80, September.
    2. Basu, Sandip & Phelps, Corey & Kotha, Suresh, 2011. "Towards understanding who makes corporate venture capital investments and why," Journal of Business Venturing, Elsevier, vol. 26(2), pages 153-171, March.
    3. Jeffrey G. Covin & Morgan P. Miles, 2007. "Strategic Use of Corporate Venturing," Entrepreneurship Theory and Practice, , vol. 31(2), pages 183-207, March.
    4. Pedro Sena Ferreira & A.H.M. Shamsuzzoha & Cesar Toscano & Pedro Cunha, 2012. "Framework for performance measurement and management in a collaborative business environment," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 61(6), pages 672-690, July.
    5. Christiana Weber, 2009. "Corporate Venture Capitalists with a ‘Bird’s-Eye View’ – A Dynamic Social Network Perspective," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 61(2), pages 195-224, April.
    6. Husted, Kenneth & Vintergaard, Christian, 2004. "Stimulating innovation through corporate venture bases," Journal of World Business, Elsevier, vol. 39(3), pages 296-306, August.
    7. Corey C. Phelps & Sandip Basu & Suresh Kotha, 2011. "Towards understanding who makes corporate venture capital investments and why," Post-Print hal-00575634, HAL.
    8. Maula, Markku V.J. & Autio, Erkko & Murray, Gordon C., 2009. "Corporate venture capital and the balance of risks and rewards for portfolio companies," Journal of Business Venturing, Elsevier, vol. 24(3), pages 274-286, May.
    9. Kollmann, Tobias & Kuckertz, Andreas, 2010. "Evaluation uncertainty of venture capitalists' investment criteria," Journal of Business Research, Elsevier, vol. 63(7), pages 741-747, July.
    10. Martin Neumann & Dominik Hintzen & Andreas Riel & Gert Waldhausen & Heinrich Dismon, 2019. "Startup Engagement as Part of the Technology Strategy Planning -How Rheinmetall Automotive Increases Innovation by Using Corporate Venturing," Post-Print hal-02147818, HAL.
    11. David Benson & Rosemarie H. Ziedonis, 2009. "Corporate Venture Capital as a Window on New Technologies: Implications for the Performance of Corporate Investors When Acquiring Startups," Organization Science, INFORMS, vol. 20(2), pages 329-351, April.
    12. 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.
    13. Thomas Keil & Erkko Autio & Gerard George, 2008. "Corporate Venture Capital, Disembodied Experimentation and Capability Development," Journal of Management Studies, Wiley Blackwell, vol. 45(8), pages 1475-1505, December.
    14. Simon U. Lee & Jina Kang, 2015. "Technological Diversification Through Corporate Venture Capital Investments: Creating Various Options to Strengthen Dynamic Capabilities," Industry and Innovation, Taylor & Francis Journals, vol. 22(5), pages 349-374, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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. Shuwaikh, Fatima & Dubocage, Emmanuelle, 2022. "Access to the Corporate Investors' Complementary Resources: A Leverage for Innovation in Biotech Venture Capital-Backed Companies," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    3. Patrick Röhm, 2018. "Exploring the landscape of corporate venture capital: a systematic review of the entrepreneurial and finance literature," Management Review Quarterly, Springer, vol. 68(3), pages 279-319, August.
    4. Luc Armel G. Da Gbadji & Benoit Gailly & Armin Schwienbacher, 2015. "International Analysis of Venture Capital Programs of Large Corporations and Financial Institutions," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1213-1246, September.
    5. Enkel, Ellen & Sagmeister, Veronika, 2020. "External corporate venturing modes as new way to develop dynamic capabilities," Technovation, Elsevier, vol. 96.
    6. David Bendig & Simon Hensellek & Julian Schulte, 2024. "Beneficial, Harmful, or Both? Effects of Corporate Venture Capital and Alliance Activity on Product Recalls," Entrepreneurship Theory and Practice, , vol. 48(1), pages 35-70, January.
    7. Varkey K. Titus Jr. & Brian S. Anderson, 2018. "Firm Structure and Environment as Contingencies to the Corporate Venture Capital-Parent Firm Value Relationship," Entrepreneurship Theory and Practice, , vol. 42(3), pages 498-522, May.
    8. Fatima Shuwaikh & Mathew Hughes & Souad Brinette & Sabrina Khemiri, 2024. "Investment decisions under uncertainty: Corporate venture capital as a real option," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 2452-2471, April.
    9. Wadhwa, Anu & Phelps, Corey & Kotha, Suresh, 2016. "Corporate venture capital portfolios and firm innovation," Journal of Business Venturing, Elsevier, vol. 31(1), pages 95-112.
    10. 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.
    11. Lin, Jun-You, 2020. "What affects new venture firm’s innovation more in corporate venture capital?," European Management Journal, Elsevier, vol. 38(4), pages 646-660.
    12. Sahaym, Arvin & Cho, Sam Yul & Kim, Sang Kyun & Mousa, Fariss-Terry, 2016. "Mixed blessings: How top management team heterogeneity and governance structure influence the use of corporate venture capital by post-IPO firms," Journal of Business Research, Elsevier, vol. 69(3), pages 1208-1218.
    13. Øyvind Bjørgum, 2016. "MNCs entering an emerging industry: The choice of governance mode under high uncertainty," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1258135-125, December.
    14. Cabral, Joseph J. & Kumar, M.V. Shyam & Park, Haemin Dennis, 2024. "The value of a reputation for sustaining commitment in interfirm relationships: The inclusion of corporate venture capitalists in investment syndicates," Journal of Business Venturing, Elsevier, vol. 39(3).
    15. Vareska Van de Vrande & Wim Vanhaverbeke, 2013. "How Prior Corporate Venture Capital Investments Shape Technological Alliances: A Real Options Approach," Entrepreneurship Theory and Practice, , vol. 37(5), pages 1019-1043, September.
    16. Lee, Simon U. & Park, Gunno & Kang, Jina, 2018. "The double-edged effects of the corporate venture capital unit's structural autonomy on corporate investors' explorative and exploitative innovation," Journal of Business Research, Elsevier, vol. 88(C), pages 141-149.
    17. Deryck J Van Rensburg, 2015. "The Promise of Corporate Entrepreneurship: A Review of Data Analytic Strategies," Business and Management Research, Business and Management Research, Sciedu Press, vol. 4(1), pages 59-73, March.
    18. Shankar, Raj K. & Shepherd, Dean A., 2019. "Accelerating strategic fit or venture emergence: Different paths adopted by corporate accelerators," Journal of Business Venturing, Elsevier, vol. 34(5), pages 1-1.
    19. Keongtae Kim & Anandasivam Gopal & Gerard Hoberg, 2016. "Does Product Market Competition Drive CVC Investment? Evidence from the U.S. IT Industry," Information Systems Research, INFORMS, vol. 27(2), pages 259-281, June.
    20. Patrick Röhm & Andreas Köhn & Andreas Kuckertz & Hermann S. Dehnen, 2018. "A world of difference? The impact of corporate venture capitalists’ investment motivation on startup valuation," Journal of Business Economics, Springer, vol. 88(3), pages 531-557, May.

    More about this item

    Keywords

    corporate venturing; performance measurement;

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:men:journl:v:5:y:2019:i:2:p:185-199. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://edirc.repec.org/data/femencz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.