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Corporate venture capital portfolios and firm innovation

Published: 2 December 2015

Authors:ÌýWadhwa, A.,ÌýPhelps, C. andÌýKotha, S.c Ìý

Publication:ÌýJournal of Business Venturing

Abstract:Ìý
This study examines the conditions under whichÌýportfoliosÌýofÌýcorporateÌýventureÌýcapitalÌý(CVC) relationships influenceÌýcorporateÌýinvestorÌýinnovationÌýperformance. We investigate this question using longitudinal data on CVC investmentÌýportfoliosÌýof 40 telecommunications equipment manufacturers. We find an inverted U-shaped effect ofÌýportfolioÌýdiversity onÌýcorporateÌýinvestorÌýinnovationperformance. We also find that the effect of diversity depends on the depth of knowledge resources available in theÌýportfolio. These results contribute to the interorganizational learning,ÌýcorporateventureÌýcapitalÌýand openÌýinnovationÌýliteratures by showing how the breadth and depth of knowledge resources available in aÌýportfolioÌýof external partnerships with youngÌýventuresÌýinteract to influencefirmÌýinnovation.

Read full article: , January 2016

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