Corporate Venture Capital (CVC) Investments and Technological Performance: Geographic Diversity and the Interplay with Technology Alliances

47 Pages Posted: 29 Nov 2017

See all articles by René Belderbos

René Belderbos

University of Leuven (KUL) - Department of Managerial Economics, Strategy and Innovation; Maastricht University - Department of Organization & Strategy

Jojo Jacob

Grenoble Ecole de Management

Boris Lokshin

Maastricht University, School of Business and Economics

Date Written: October 2017

Abstract

Firms are increasingly operating portfolios of geographically dispersed CVC investments for accessing a variety of location-specific knowledge, often alongside traditional external knowledge-sourcing strategies such as technology alliances. We examine the conditions under which geographic diversity in corporate venture capital (CVC) investments has positive consequences for firms’ technological performance in the context of simultaneously pursued technology alliance strategies. We find that geographic diversity in CVC portfolios enhances performance as long as firms avoid knowledge redundancy in knowledge-sourcing arising from geographic overlaps with technology alliances, and the managerial complexity, coordination costs, and resource constraints stemming from the simultaneous pursuit of diversity in both technology alliances and CVC investments. Our inferences draw on a panel data set on the patents, CVC investments, and technology alliances of 55 CVC-active firms in a variety of industries.

Keywords: CVC investments, technology alliances, technological performance

Suggested Citation

Belderbos, Rene and Jacob, Jojo and Lokshin, Boris, Corporate Venture Capital (CVC) Investments and Technological Performance: Geographic Diversity and the Interplay with Technology Alliances (October 2017). Available at SSRN: https://ssrn.com/abstract=3076883 or http://dx.doi.org/10.2139/ssrn.3076883

Rene Belderbos (Contact Author)

University of Leuven (KUL) - Department of Managerial Economics, Strategy and Innovation ( email )

Naamsestraat 69
Leuven, B-3000
Belgium
+32 16 32 6912 (Phone)
+32 16 32 6732 (Fax)

Maastricht University - Department of Organization & Strategy ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands

Jojo Jacob

Grenoble Ecole de Management ( email )

Grenoble, 38003
France

Boris Lokshin

Maastricht University, School of Business and Economics ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
+31 43 388 3697 (Phone)
+31 43 325 4893 (Fax)

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