The impact of independent and heterogeneous corporate venture capital on firm efficiency

Frank P. Balz, Florian Brinkmann and Dominik K. Kanbach

Journal of Business Venturing Insights, 2023, vol. 19, issue C

Abstract: While corporate venture capital funds (CVCs) are commonly analyzed as homogenous units, they display significant heterogeneity across various organizational aspects, which affect them and subsequently their portfolio firms. Using a sample of 383 European portfolio firms from the longitudinal VICO dataset, we first investigate the impact of investor type (independent vs corporate) on firm operating efficiency. We show that firms backed by CVCs suffer reductions in productivity. We then account for CVC heterogeneity and find that these significant reductions in operating efficiency only occur for ventures backed by endoisomorphistic CVCs, which resemble more corporate structures. By contrast, firms backed by exoisomorphistic CVCs, which resemble more independent venture capital structures, do not show significant differences in productivity compared to ventures that receive independent venture capital backing.

Keywords: Venture capital; Corporate venture capital; DEA; Efficiency; Isomorphism (search for similar items in EconPapers)
JEL-codes: G24 L22 L25 L26 M13 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jobuve:v:19:y:2023:i:c:s2352673423000136

DOI: 10.1016/j.jbvi.2023.e00384

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