Aspirations, innovation, and corporate venture capital: A behavioral perspective

Aspirations, innovation, and corporate venture capital: A behavioral perspective

This study takes an organizational decision-making perspective to examine when firms are likely to utilize CVC units as a mechanism for externalizing R&D. We draw insights from the behavioral theory of the firm to argue that managerial aspirations for innovation-related goals are an important dr...

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Bibliographic Details
Main Authors: GABA, Vibha, BHATTACHARYA, Shantanu
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2012
Subjects:
corporate venture capital
performance feedback
innovation performance
external R&D
termination
Corporate Finance
Entrepreneurial and Small Business Operations
Finance and Financial Management
Technology and Innovation
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/5093
https://ink.library.smu.edu.sg/context/lkcsb_research/article/6092/viewcontent/Gaba_et_al_2012_Strategic_Entrepreneurship_Journal__1_.pdf
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Institution: Singapore Management University
Language: English
Description
Summary:This study takes an organizational decision-making perspective to examine when firms are likely to utilize CVC units as a mechanism for externalizing R&D. We draw insights from the behavioral theory of the firm to argue that managerial aspirations for innovation-related goals are an important driver of CVC initiatives within firms. We test our argument by examining both the adoption and termination of CVC units for a sample of information technology firms from 1992 to 2003. Results show that a firm is more likely to adopt and less likely to terminate a CVC unit when its innovation performance is closest to its social aspirations.

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