Journal article
Developing the selection and valuation capabilities through learning: The case of corporate venture capital
Journal of business venturing, v 24(3)
2009
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
The objective of this paper is to examine the impacts of experience intensity, experience diversity and acquisitive experience on the development of selection and valuation capabilities that help the parent (investor) company generate higher short-term financial returns and improve long-term strategic performance. Based on our analysis of 2110 cases of CVC investments in the VenureXpert data base, we find that industry diversity of a CVC program's experience is positively related to its selection of portfolio companies with relatively high financial potential. The CVC program's experience intensity, stage diversity of its experience, and syndication improve its selection of portfolio companies with greater strategic potential. In addition, stage diversity may enhance valuation capability. We also find that experience accumulation is more effective when a CVC program invests in a portfolio company in the later stage rather than in the early stage.
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Details
- Title
- Developing the selection and valuation capabilities through learning: The case of corporate venture capital
- Creators
- Yi Yang - Department of Management, College of Management, University of Massachusetts Lowell, 1 University Avenue, Lowell, MA 01854, United StatesV.K. Narayanan - Drexel UniversityShaker Zahra - University of Minnesota
- Publication Details
- Journal of business venturing, v 24(3)
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Management
- Web of Science ID
- WOS:000266120500006
- Scopus ID
- 2-s2.0-64649101352
- Other Identifier
- 991019167693704721
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InCites Highlights
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business