Are Sharks more Dangerous at Dusk or Dawn? Timing of CVC and Ventures’ Commercial Performance

Christopher Albert Sabel, Francesco Di Lorenzo

Publikation: Bidrag til bog/antologi/rapportKonferenceabstrakt i proceedingsForskningpeer review

Abstract

The evidence on how corporate venture capital (CVC) investments affect investee ventures’ commercial performance is mixed. An examination of the timing of CVC investments can offer new insights on this contention. Previous studies showed that the timing of ventures’ resource acquisition is crucial for venture outcomes. However, these studies have overlooked the role of incumbents as a resource channel and the tradeoffs associated with timing. Building on resource dependence theory (RDT), we explore how the timing of CVC investments alters the power balance between investors and backed ventures, significantly influencing ventures’ commercial performance. We further examine how the timing of venture board seats obtained by CVC investors affects this relationship. Using a dataset of 294 Norwegian ventures active in knowledge-intensive industries from 2004 to 2015, we offer evidence for a differential effect of early- vs. late-stage CVC investments, showing that late-stage investments significantly increase commercial performance. We also find that associating a venture board seat with a CVC investment moderates this effect; ventures are associated with greater commercial performance when late-stage investments come without board seats. We suggest that board seats prevent ventures from forming investment ties with additional CVC investors, limiting ventures’ external ties crucial for market success.
OriginalsprogEngelsk
TitelProceedings of the Eighty-second Annual Meeting of the Academy of Management
RedaktørerSonia Taneja
Antal sider5
UdgivelsesstedBriarcliff Manor, NY
ForlagAcademy of Management
Publikationsdato2022
Artikelnummer120
DOI
StatusUdgivet - 2022
BegivenhedThe Academy of Management Annual Meeting 2021: Bringing the Manager Back in Management - Online, Virtual, Online
Varighed: 29 jul. 20214 aug. 2021
Konferencens nummer: 81
https://aom.org/events/annual-meeting

Konference

KonferenceThe Academy of Management Annual Meeting 2021
Nummer81
LokationOnline
ByVirtual, Online
Periode29/07/202104/08/2021
Internetadresse
NavnAcademy of Management Proceedings
ISSN0065-0668

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