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The diversity of carmakers\' behaviors vis-a-vis the Corporate Venture Capital

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  • Vincent FRIGANT
  • Marina FLAMAND

Abstract

This paper wishes to contribute to the literature about the industrial firms\' motivations to invest in Corporate Venture Capital programs. In a first part, we build a typology on CVC objectives based on a literature review. Then we apply this typology to carmakers’ CVC programs. We study 13 worldwide car manufacturers. Results show a poor interest of car makers vis-à-vis CVC programs. However, the existing programs show that strategic objectives are the most common objectives even if some others objectives are also pursued, like the “relational objective”. Summarizing the results, we identify four typical behaviors of carmakers vis-à-vis CVC programs. We conclude by a discussion about the automotive industry specificity, and we call upon other sectoral studies based on a qualitative method.The diversity of carmakers\' behaviors vis-a-vis the Corporate Venture Capital

Suggested Citation

  • Vincent FRIGANT & Marina FLAMAND, 2015. "The diversity of carmakers\' behaviors vis-a-vis the Corporate Venture Capital," Cahiers du GREThA 2015-24, Groupe de Recherche en Economie Théorique et Appliquée.
  • Handle: RePEc:grt:wpegrt:2015-24
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    File URL: http://cahiersdugretha.u-bordeaux4.fr/2015/2015-24.pdf
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    References listed on IDEAS

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    1. Riyanto, Yohanes E. & Schwienbacher, Armin, 2006. "The strategic use of corporate venture financing for securing demand," Journal of Banking & Finance, Elsevier, vol. 30(10), pages 2809-2833, October.
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    5. 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.
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    Cited by:

    1. Marina Flamand, 2016. "Studying strategic choices of carmakers in the development of energy storage solutions: a patent analysis," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 16(2), pages 169-192.

    More about this item

    Keywords

    Corporate Venture Capital; CVC; Innovation; Automotive; Investment strategy; Entrepreneurial Finance;

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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