Corporate venture capital portfolios and firm innovation

News

AuthorsWadhwa, A., Phelps, C. and Kotha, S.c  

PublicationJournal of Business Venturing

Abstract
This study examines the conditions under which portfolios of corporate venture capital (CVC) relationships influence corporate investor innovation performance. We investigate this question using longitudinal data on CVC investment portfolios of 40 telecommunications equipment manufacturers. We find an inverted U-shaped effect of portfolio diversity on corporate investor innovationperformance. We also find that the effect of diversity depends on the depth of knowledge resources available in the portfolio. These results contribute to the interorganizational learning, corporateventure capital and open innovation literatures by showing how the breadth and depth of knowledge resources available in a portfolio of external partnerships with young ventures interact to influencefirm innovation.

Read full article: Journal of Business Venturing, January 2016