Corporate venture capital and the balance of risks and rewards for portfolio companiesMarkku V.J. Maula, Erkko Autio and Gordon C. Murray Journal of Business Venturing, 2009, vol. 24, issue 3, pages 274-286 Abstract: This paper contributes to the literature on corporate venture capital (CVC) by examining the management of CVC investments from the perspective of the investee firm. We focus on the trade-off between social interactions and relationship safeguards and examine their effects on the twin relationship outcomes of learning benefits and risks. The model is tested using data collected from CEOs of U.S. technology-based new firms receiving CVC funding. Complementarities between the investee firm and its CVC investor are positively related to the level of social interaction and negatively related to the use of different types of relationship safeguards by the investee firm. The use of safeguards is further negatively related to both realized relationship risks and social interaction. Social interaction is positively related to realized learning benefits. These findings highlight the fine balance that the investee firm has to strike between openness and self protection in a CVC relationship. Implications for future research and current practice are discussed. Keywords: Corporate; venture; capital; Technology-based; new; firms; Complementarities; Relationship; risks; Relationship; learning; benefits (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: http://EconPapers.repec.org/RePEc:eee:jbvent:v:24:y:2009:i:3:p:274-286 Access Statistics for this article Journal of Business Venturing is edited by S. Venkataraman More articles in Journal of Business Venturing from Elsevier |
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