Corporate Venture Capital Portfolios and Firm Innovation

41 Pages Posted: 2 May 2015

See all articles by Anu Wadhwa

Anu Wadhwa

Ecole Polytechnique Fédérale de Lausanne - Management of Technology and Entrepreneurship Institute (MTEI)

Corey C. Phelps

McGill University

Suresh Kotha

Foster School of Business

Date Written: April 30, 2015

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 innovation performance. 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, corporate venture capital and open innovation literatures by showing how the depth and breadth of knowledge resources available in a portfolio of external partnerships with young ventures interact to influence firm innovation.

Keywords: innovation, interorganizational portfolios, corporate venture capital

Suggested Citation

Wadhwa, Anu and Phelps, Corey C. and Kotha, Suresh, Corporate Venture Capital Portfolios and Firm Innovation (April 30, 2015). Journal of Business Venturing, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2601102

Anu Wadhwa (Contact Author)

Ecole Polytechnique Fédérale de Lausanne - Management of Technology and Entrepreneurship Institute (MTEI) ( email )

Odyssea
Station 5
Lausanne, 1015
Switzerland

Corey C. Phelps

McGill University ( email )

1001 Sherbrooke St. W
Montreal, Quebec H3A 1G5
Canada

Suresh Kotha

Foster School of Business ( email )

University of Washington
Seattle, WA
United States
206-543-4466 (Phone)
206-683-9392 (Fax)

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