Department of Management

 

Date of this Version

5-2018

Citation

Titus Jr, V. K., & Anderson, B. S. 2018. Firm Structure and Environment as Contingencies to the Corporate Venture Capital-Parent Firm Value Relationship. Entrepreneurship Theory and Practice, 42(3): 498-522.

Published in Entrepreneurship Theory and Practice 42:3 (May 2018), pp 498–522.

doi 10.1111/etap.12264

Comments

Copyright © 2016 SAGE Publications Inc. Used by permission.

Abstract

Corporate venture capital (CVC) is a valuable strategic tool associated with numerous innovative outcomes. However, less is known about whether CVC investing creates value for the investing (or parent) firm. Drawing from the attention-based view and contingency theory, we suggest that an increase in firm value from CVC investing is contingent on attentional mechanisms that discipline the selection of new investment opportunities. We posit that increases in firm value associated with CVC investing accrues to firms adopting specific operational structures and operating in particular environmental contexts. We find support for our research model in a sample of 95 companies between 2000 and 2008.

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