Session Details: Session 1082

Corporate Venture Capital

Track K

Date: Monday, October 13, 2008

 

Time: 11:15 – 12:30

Paper

Room: Salon 20


Session Chair:
TBD

Title: An Option to Partner: A Dyadic Analysis of CVC Relationships

Authors

  • Anu Wadhwa, Imperial College London
  • Corey Phelps, McGill University

Abstract: This paper takes a real options view of corporate venture capital (CVC), which are direct minority equity investments made by established companies in privately held entrepreneurial ventures. CVC investments have been characterized as creating growth options for corporate investors. We argue corporate investors often exercise these growth options by forming strategic alliances with their portfolio firms. We identify and empirically test a set of factors that lead established firms to exercise the growth options embedded in CVC investments by forming strategic alliances with the entrepreneurial ventures in which they invested. We explore how uncertainty surrounding a CVC investment influences the likelihood of future alliance formation and how a corporate investor’s resources moderate this effect.

Title: Choose Wisely Your Partner: Licensing Strategies of Science-based Start-Ups

Authors

  • Daniela Baglieri, University of Messina

Abstract: The core argument in this paper is that partner choice is a key firm capability which may affect the early growth of science-based start-ups. We suggest that resource-constrained start-ups may choose strategically their partners in order to lessen the risks of disclosure and litigation and disputes over property rights (IPRs). Therefore, by choosing their partner science-based start-ups choose how much to compete for IPRs. We also suggest that they may leverage their upstream collaboration with universities and star scientists to attract strategic downstream partners. We test our hypotheses on a sample of Italian-based, privately held biotechnology firms. We found that size and founders’ prior experience affect partner choice. We believe these findings provide new challenges for the management of IPRs and strategic entrepreneurship literature.

Title: Corporate Venturing and Sequential Market Entry: An Empirical Test of the Decision to Exercise Footholds

Authors

  • Tim R. Holcomb, Miami University
  • Justin Webb, University of North Carolina at Charlotte
  • John Upson, University of West Georgia
  • Jennifer Sexton, West Virginia University

Abstract: A widely-held belief is that corporate venturing is a means by which firms promote growth and sustain strategic competitiveness. Building on concepts from real options theory and research examining corporate venturing, we propose a model of sequential market entry and expansion in which entrepreneurial firms establish footholds in new markets to reduce uncertainty associated with market entry. Specifically, applying on RBV and contingency theory logic, we test hypotheses examining the influence of financial slack on the decision to exercise growth options (footholds) and the direct and moderating influence of industry context—conditions that increase the value of footholds in some contexts and not in others. In doing so, we draw attention to the decision to exercise foothold investments in an entrepreneurial setting.

All Sessions in Track K...

Sun: 10:00 – 11:30
Session 1507: Strategic Entrepreneurship Journal and its Relation to Entrepreneurship and Strategy
Sun: 13:00 – 14:30
Session 1607: University Entrepreneurship
Mon: 11:15 – 12:30
Session 1080: Ready, Set, GO! Launch Strategy and Performance
Session 1082: Corporate Venture Capital
Mon: 15:30 – 16:45
Session 1085: Small Firm Strategy
Mon: 17:00 – 18:15
Session 1079: Entrepreneurship in Context: International and Institutional Influences
Tue: 11:15 – 12:30
Session 1078: Entrepreneurial Orientation
Session 1083: IPOs: Causes and Consequences
Tue: 14:30 – 15:45
Session 1094: Learning and Performace in New Ventures
Wed: 10:00 – 11:15
Session 1087: Networks and New Ventures
Session 1097: Raising Capital - Risky Business!
Wed: 11:30 – 12:45
Session 1081: Venture Capital Investment: Worth the price?
Session 1099: Entrepreneurship Theory: Emerging Views


Strategic Management Society

Cologne Conference