Strategic Management Thought

Corporate Venture Capital (CVC) Model in ICT Companies

Document Type : Research Paper

Authors

1 Phd. Student of Management, Tarbiat Modares University

2 Department of Business Management, Tarbiat Modares University, Tehran, Iran

3 Faculty member of Tarbiat Modares University, Tehran, Iran

4 Full Professor of Economics and Management Faculty, Tarbiat Modares University

Abstract

Corporate development can be achieved through in or out-of-company strategies. Some of the most important exploratory actions are: to do strategic alliances, joint venture, acquisition, or investment in ventures. Corporate venture capital is a strategy used by large companies in various industries around the world. In Iran, the use of this method, especially among ICT companies is growing. The present research goal is to design CVC model for Iranian companies. Since there has no studies been conducted in this country before, the exploratory method of grounded theory has been used to present the model. In this method, the data are collected through deep semi-structured interviews with industry and academic experts and are codified in three stages to reach a paradigm model. In the proposed model, Corporate venture capital has been identified as the main phenomenon and causal conditions, context, intervening conditions, related actions, and consequences have been introduced. Next, theories are articulated through a storyline building process around categories. Finally, the research contributions and limitations are mentioned.

Keywords

Main Subjects

استراوس، انسلم، و کوربین، جولیت (1395). مبانیپژوهشکیفی:فنونومراحلتولیدنظریۀزمینه‌ای (ابراهیم افشار، مترجم). تهران: نشر نی.
خاکی، غلامرضا (1392). روشتحقیقبارویکردگرانددیدرپایان‌نامه‌نویسی. تهران: فوژان.
دانایی‌فرد، حسن؛ آذر، عادل؛ و الوانی، سیدمهدی (1386). روش‌شناسیپژوهشکیفیدرمدیریت:رویکردیجامع. تهران: صفار، اشراقی.
هادوی‌نیا، مصطفی (1389). کاوشپدیدۀرفتارهایمنافقانهدرارتباطاتبین‌فردیدرسازمان. (پایان‌نامۀ دورۀ دکتری). دانشگاه تربیت مدرس، تهران، ایران.
Basu, S., Phelps, C. & Kotha, S.)2011). Towards understanding who makes corporate venture capital investments and why. JournalofBusinessVenturing, 26(2), 153-171.
Chesbrough, H. (2000). Designing corporate ventures in the shadow of private venture capital. CaliforniaManagementReview, 42(3), 31-49.
Collison, C. & Parcell, G. (2007). LearningToFly:PracticalKnowledgeManagementFromLeadingandLearningOrganization. Delhi: Wiley India Pvt.
Cumming, D. (2012). TheOxfordHandbookofVentureCapital. Oxford: oxford University press.
Dauderstadt, P. (2013). SuccessFactorsinStrategicCorporateVenturing. Berlin: Technischen Universitat Berlin.
Dushnitsky, G. (2011). Entrepreneurial energy: riding the next wave of corporate venturing capital. BusinessStrategyReview, 22(3), 44-49.
Dushnitsky, G. (2012). Corporate venture capital in the twenty first century: An integral part of firm's innovation toolkit. In: TheOxfordHandbookofVentureCapital. Oxford: Oxford University Press, 156-210.
Dushnitsky, G. & Lavie, D.( 2010). How alliance formation shapes corporate venture capital investment in the software industry: A resource-based perspective. StrategicEntrepreneurshipJournal, 4(1), 22-48.
Dushnitsky, G. & Lenox, M. J.(2005a). When do firms undertake R&D by investing in new ventures?. StrategicManagementJournal, 26, 947-965.
Dushnitsky, G. & Lenox, M. J. (2005b). When do incumbents learn from entrepreneurial ventures?. Corporate venture capital and investing firm innovation rates. ResearchPolicy, 34(5), 615-639.
Dushnitsky, G. & Lenox, M. J. (2006).  When does corporate venture capital investment create firm value?. JournalofBusinessVenturing, 21, 753-772.
Gaba, V. & Meyer, A. D.(2008). Crossing the organizational species barrier: How venture capital practices infiltrated the information technology sector. AcademyofManagementJournal, 51, 976-998.
Gawer, A. & Cusumano, M. A. (2002). PlatformLeadership:HowIntel,Microsoft,andCiscoDriveIndustryInnovation. Boston, MA: Harvard Business School Press.
Gompers, P. A. & Lernere, J. (1998). What drives venture capital fundraising?. In: BrookingsPapersonEconomicActivity, Microeconomics. Washington D.C.: Brookings Institution, 149-204.
Goulding, Ch. (1998). Grounded theory: the missing methodology on the interpretivist agenda. QualitativeMarketResearch:AnInternationalJournal, 1(1), 50-57.
Hamel, G. & Green, B. (2007). TheFutureofManagement. Boston: Harvard Business School press.
Hana, U. (2013). Competitive advantage achievement through innovation and knowledge. JournalofCompetitiveness, 5(1), 82-96.
Henderson, J. & Leleux, B. (2002). Corporate venture capital:effecting resource combinations and transfers.  BobsonEntrepreneurshipReview, May, 31-46.
Kann, A. (2000). Strategicventurecapitalinvestingbycorporations:AframeworkforstructuringandValuingCorporateventurecapitalprograms. (Unpublished Doctoral Dissertaion). Stanford University.
Keil, T. (2000). Externalcoorporateventuring:cognition,speed,andcapabilitydevelopment. Espoo: Helsinki University of Technology.
Keil, T. (2002). ExternalCorporateVenturing:StrategicRenewalinRapidlyChangingIndustries. Westport: Quorum Books.
Keil, T., Maula, M. V. & Zahra, S. A.(2004). Explorativeandexploitativelearningfromcorporateventurecapital:modelofprogramlevelfactors. New Orleans LA USA:  Academy of Management.
Maula, Markku, V.J. (2001). CorporateVentureCapitalandtheValue-AddedforTechnology-BasedNewFirms. Helsinki: Institute of Strategy and International Business, Helsinki University of Technology.
Maula, Markku, V.J. (2006). Corporate venture capital as a strategic tool for corporations. In: HandbookofResearchonVentureCapital. Northampton (MA): Edward Elgar Publishing Ltd., 371-392.
Maula, M. V., Autio, E. & Murray, G. C. (2003). Prerequisite for the creation of social capitaland subsequent knowledge acquisition in corporate venture capital. VentureCapital, 5(2), 117-134.
Maula, M. V., Autio, E. & Murray, G. C.(2005). Corporate venture capitalists and independent venture capitalists: What do they know, who do they know, and should entrepreneurs care?. VentureCapital, 7(1), 3-21.
Maula, M. V., Autio, E. & Murray, G. C.(2006). How corporate venture capitalists add value to entrepreneurial young firms?. In: AdvancesinEntrepreneurship,FirmEmergenceandgrowth. Oxford: JAI, 267-309.
Maula, M. V. & Murray, G. C.(2002). Corporate venture capital and the creation of US public companies: the impact of sources of venture capital on the performance of portfolio companies. In: CreatingValue:WinnersintheNewBusinessEnvironment. (M. A. Hitt, R. Amit, C. E. Lucrier & R. D. Nixon, eds.). Oxford: Blackwell Publishers, 164-187.
McNally, K. (1997). CorporateVentureCapital: BridgingtheEquityGapintheSmallBusinessSector. London: Routledge.
Narayanan, V. K., Yang, Y. & Zahra, S. A.(2009).  Corporate venturing and value creation: A review and proposed framework. Researchpolicy, 38(1), 58-76.
Senge, P. M.(2006). TheFifthDiscipline:TheArt&practiceofthelearningOrganization. New York: DOUBLEDAY.
Sharma, P. & Chrisman, J. J. (1999). Toward a Reconciliation of the definitional Issues in the Field of Corporate Entrepreneursip. EntrepreneurshipTheoryandPractice, 23, 11-27.
Siegel, R., Siegel, E. & Macmillan, I. C. (1988). Corporate venture capitalists: autonomy, obstacles, and performance. JournalofBusinessVenturing, 3(3), 233-247.
Souitaris, V. & Zerbinati, S.(2014).  How do corporate venture capitalists do deals? An explorartion of corporate investment practices. StrategicEntrepreneurshipjournal, 8, 321-348.
Sykes, Hollister, B. (1986).  Anatomy of a corporate venturing program: Factors influencing success.  JournalofBusinessVenturing, 1(3), 275-294.
Sykes, Hollister, B. (1990). Corporate venture capital: Strategies for success. JournalofBusinessVenturing, 5(1), 37-47.
Vladimir, I. I. & Xie, F. (2010). Corporate Venture Capital. In: VentureCapital:InvestmentStrategies,Structures,andPolicies. Hoboken: John Wiley & Sons, 51-70.
Wadhwa, A. & Kotha, S. B., 2006. Knowledge creation through external venturing: Evidence from telecommunication equipment manufacturing industry. AcademyofManagementJournal, 49, 819-835.
Zahra, S. A. (1995). Corporate entrepreneurship and financial performance: The case of management leveraged buyouts. JournalofBusinessVenturing, 225-247
Strategic Management Thought
Volume 13, Issue 1 - Serial Number 1
May 2019
Pages 255-293
  • Receive Date: 09 August 2017
  • Revise Date: 20 May 2018
  • Accept Date: 26 May 2018