How Prior Corporate Venture Capital Investments Shape Technological Alliances: A Real Options Approach. (September 2013)

• Record Type: Journal Article
• Authors: Van de Vrande, Vareska; Vanhaverbeke, Wim
• Is Part Of: Entrepreneurship theory and practice. Volume 37:Number 5(2013:Sep.)
• Page Start: 1019
• Page End: 1043
• Publication Date: 2013-09
• Subjects: Small business -- Periodicals; New business enterprises -- Periodicals; Entrepreneurship -- Periodicals; 658.421
• DOI: 10.1111/j.1540-6520.2012.00526.x
• Languages: English
• ISSNs: 1042-2587

Abstract

This article investigates how prior corporate venture capital (CVC) relationships between two firms affect the likelihood of their subsequently entering a strategic alliance. Creating a portfolio of CVC investments provides the investing firm with a set of opportunities that can be pursued once the technological and market uncertainty have been reduced. If the technology appears to be promising, a follow–on investment, such as a strategic alliance, is made to ensure the transfer of the technological knowledge. This article shows that prior CVC investments can play a role in the formation of strategic alliances and investigates the conditions under which they are most likely to do so.