Publication Type
Journal Article
Version
acceptedVersion
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 | Technology and Innovation
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
Citation
GABA, Vibha and BHATTACHARYA, Shantanu.
Aspirations, innovation, and corporate venture capital: A behavioral perspective. (2012). Strategic Entrepreneurship Journal. 6, (2), 178-199.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/5093
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1002/sej.1133
Included in
Corporate Finance Commons, Entrepreneurial and Small Business Operations Commons, Finance and Financial Management Commons, Technology and Innovation Commons