Prerequisites for the Creation of Social Capital and Subsequent Knowledge Acquisition in Corporate Venture Capital

Posted: 1 Dec 2009

See all articles by Markku V. J. Maula

Markku V. J. Maula

Aalto University, Department of Industrial Engineering and Management

Erkko Autio

affiliation not provided to SSRN

Gordon C. Murray

University of Exeter Business School

Multiple version iconThere are 2 versions of this paper

Date Written: 2001

Abstract

A model is created and tested that suggests that thecreation of social capital is not exogenously determined but is influenced bystructural conditions, and that social capital and subsequent resource exchangeand value creation are influenced by the extent to which structural incentivesexist for these. Two forms of structural incentives are considered: (1) complementaritiesamong firms, and (2) ownership share. Also discussed is the fact that theseincentives are important determinants of investments by corporate investors incollaboration and engagement in social interaction with the portfolio company(used in the model as a proxy for social capital) and thereby for knowledgeacquisition by the portfolio company from an inter-firm relationship. The modelis tested with survey data on 91 US, privately-held, technology-based, newfirms. Conclusions indicate that the complementarities and the ownership were shownto be positively related to social interaction as predicted. For entrepreneurs,implications are that complementarities between the businesses of the corporateinvestor and the portfolio company are crucially important success factors.That social interaction can be actively used in order to enable effectiveknowledge acquisition from the corporate investor. For the corporate investor,complementarities are a key influence on the potential economic value of theirportfolio firms. (JSD)

Keywords: Interpersonal communication, Information transfer, Firm ownership, Social capital, Investors, Agency theory, Venture capitalists, Cooperation

Suggested Citation

Maula, Markku V. J. and Autio, Erkko and Murray, Gordon C., Prerequisites for the Creation of Social Capital and Subsequent Knowledge Acquisition in Corporate Venture Capital (2001). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1513801

Markku V. J. Maula (Contact Author)

Aalto University, Department of Industrial Engineering and Management ( email )

PO Box 15500
FI-00076 AALTO
Espoo
Finland

HOME PAGE: http://users.aalto.fi/mmaula/

Erkko Autio

affiliation not provided to SSRN

Gordon C. Murray

University of Exeter Business School ( email )

Streatham Court
Rennes Drive
Exeter EX4 4PU
United Kingdom
+44 777 522 0857 (Phone)

HOME PAGE: http://business-school.exeter.ac.uk/staff/profile.php?id=34

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