Publication Type

Journal Article

Publication Date

6-2012

Abstract

This study takes an organizational decision-making perspective to examine when firms are likely to utilize CVC units as a mechanism for externalizing R&D. We draw insights from the behavioral theory of the firm to argue that managerial aspirations for innovation-related goals are an important driver of CVC initiatives within firms. We test our argument by examining both the adoption and termination of CVC units for a sample of information technology firms from 1992 to 2003. Results show that a firm is more likely to adopt and less likely to terminate a CVC unit when its innovation performance is closest to its social aspirations.

Keywords

corporate venture capital, performance feedback, innovation performance, external R&D, termination

Discipline

Corporate Finance | Entrepreneurial and Small Business Operations | Finance and Financial Management

Research Areas

Operations Management

Publication

Strategic Entrepreneurship Journal

Volume

6

Issue

2

First Page

178

Last Page

199

ISSN

1932-4391

Identifier

10.1002/sej.1133

Publisher

Wiley: 24 months

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

1