Publication Cover
Venture Capital
An International Journal of Entrepreneurial Finance
Latest Articles
51
Views
0
CrossRef citations to date
0
Altmetric
Research Article

Compensation incentive, misappropriation risk, and startup innovation: the role of corporate venture capital manager in resource transfer

&
Received 07 Aug 2023, Accepted 21 Jun 2024, Published online: 01 Jul 2024

References

  • Alvarez-Garrido, E., and G. Dushnitsky. 2016. “Are Entrepreneurial venture’s Innovation Rates Sensitive to Investor Complementary Assets? Comparing Biotech Ventures Backed by Corporate and Independent VCs.” Strategic Management Journal 37 (5): 819–834. https://doi.org/10.1002/smj.2359.
  • Anokhin, S., T. Morgan, W. Schulze, and R. Wuebker. 2022. “Is a Reputation for Misconduct Harmful? Evidence from Corporate Venture Capital.” Journal of Business Research 138:65–76. https://doi.org/10.1016/j.jbusres.2021.09.008.
  • Bae, J., and J. M. Lee. 2021. “How Technological Overlap Between Spinouts and Parent Firms Affects Corporate Venture Capital Investments in Spinouts: The Role of Competitive Tension.” Academy of Management Journal 64 (2): 643–678. https://doi.org/10.5465/amj.2018.0223.
  • Block, Z., and O. A. Ornati. 1987. “Compensating Corporate Venture Managers.” Journal of Business Venturing 2 (1): 41–51. https://doi.org/10.1016/0883-9026(87)90018-8.
  • Buzzacchi, L., G. Scellato, and E. Ughetto. 2015. “Investment Stage Drifts and Venture Capital Managerial Incentives.” Journal of Corporate Finance 33:118–128. https://doi.org/10.1016/j.jcorpfin.2015.05.006.
  • Chahine, S., I. Filatotchev, G. D. Bruton, and M. Wright. 2021. “‘Success by Association’: The Impact of Venture Capital Firm Reputation Trend on Initial Public Offering Valuations.” Journal of Management 47 (2): 368–398. https://doi.org/10.1177/0149206319847265.
  • Chemmanur, T. J., E. Loutskina, and X. Tian. 2014. “Corporate Venture Capital, Value Creation, and Innovation.” Review of Financial Studies 27 (8): 2434–2473. https://doi.org/10.1093/rfs/hhu033.
  • Chesbrough, H. W. 2002. “Making Sense of Corporate Venture Capital.” Harvard Business Review 80 (3): 90–99.
  • Colombo, M. G., and K. Shafi. 2016. “Swimming with Sharks in Europe: When Are They Dangerous and What Can New Ventures Do to Defend Themselves?” Strategic Management Journal 37 (11): 2307–2322. https://doi.org/10.1002/smj.2572.
  • Cumming, D. J., Y. Li, and Y. Yu. 2023. Stock Market Manipulation and Corporate Venture Capital Investments.
  • Cumming, D. J., R. Peter, and M. Tarsalewska. 2020. “Public‐to‐Private Buyouts and Innovation.” British Journal of Management 31 (4): 811–829. https://doi.org/10.1111/1467-8551.12404.
  • Dang, J., and K. Motohashi. 2015. “Patent Statistics: A Good Indicator for Innovation in China? Patent Subsidy Program Impacts on Patent Quality.” China Economic Review 35:137–155. https://doi.org/10.1016/j.chieco.2015.03.012.
  • Devarakonda, S. V., and J. J. Reuer. 2019. “Safeguarding from the Sharks: Board Representation in Minority Equity Partnerships.” Organization Science 30 (5): 981–999. https://doi.org/10.1287/orsc.2018.1263.
  • Dushnitsky, G. 2012. “Corporate Venture Capital in the 21st Century: An Integral Part of firms’ Innovation Toolkit.” In The Oxford Handbook of Venture Capital, edited by D. J. Cumming, 156–210. Oxford: Oxford University Press.
  • Dushnitsky, G., and M. J. Lenox. 2006. “When Does Corporate Venture Capital Investment Create Firm Value?” Journal of Business Venturing 21 (6): 753–772. https://doi.org/10.1016/j.jbusvent.2005.04.012.
  • Dushnitsky, G., and Z. Shapira. 2010. “Entrepreneurial Finance Meets Organizational Reality: Comparing Investment Practices and Performance of Corporate and Independent Venture Capitalists.” Strategic Management Journal 31 (9): 990–1017. https://doi.org/10.1002/smj.851.
  • Dushnitsky, G., and J. M. Shaver. 2009. “Limitations to Interorganizational Knowledge Acquisition: The Paradox of Corporate Venture Capital.” Strategic Management Journal 30 (10): 1045–1064. https://doi.org/10.1002/smj.781.
  • Fuchs, F., R. Füss, T. Jenkinson, and S. Morkoetter. 2022. “Should Investors Care Where Private Equity Managers Went to School.” Review of Corporate Finance 2 (3): 451–492. https://doi.org/10.1561/114.00000021.
  • Gaba, V., and A. D. Meyer. 2008. “Crossing the Organizational Species Barrier: How Venture Capital Practices Infiltrated the Information Technology Sector.” Academy of Management Journal 51 (5): 976–998. https://doi.org/10.5465/amj.2008.34789671.
  • Gompers, P., and J. Lerner. 1996. “The Use of Covenants: An Empirical Analysis of Venture Partnership Agreements.” The Journal of Law and Economics 39 (2): 463–498. https://doi.org/10.1086/467356.
  • Griffith, R., and G. Macartney. 2014. “Employment Protection Legislation, Multinational Firms, and Innovation.” The Review of Economics and Statistics 96 (1): 135–150. https://doi.org/10.1162/REST_a_00348.
  • Gu, Q., and X. Lu. 2014. “Unraveling the Mechanisms of Reputation and Alliance Formation: A Study of Venture Capital Syndication in China.” Strategic Management Journal 35 (5): 739–750. https://doi.org/10.1002/smj.2117.
  • Gutmann, T., J. Schmeiss, and S. Stubner. 2019. “Unmasking Smart Capital: How Corporate Venture Capital Units Configure Value-Adding Services.” Research-Technology Management 62 (4): 27–36. https://doi.org/10.1080/08956308.2019.1613117.
  • Hallen, B. L., R. Katila, and J. D. Rosenberger. 2014. “How Do Social Defenses Work? A Resource-Dependence Lens on Technology Ventures, Venture Capital Investors, and Corporate Relationships.” Academy of Management Journal 57 (4): 1078–1101. https://doi.org/10.5465/amj.2012.0003.
  • Hill, S. A., M. V. J. Maula, J. M. Bircumshaw, and G. C. Murray. 2009. “Transferability of the Venture Capital Model to the Corporate Context: Implications for the Performance of Corporate Venture Units.” Strategic Entrepreneurship Journal 3 (1): 3–27. https://doi.org/10.1002/sej.54.
  • Hsu, Y. T., C. W. Huang, and K. G. Koedijk. 2023. “Unintended Consequences of Compensation Peer Groups on Corporate Innovation.” Journal of Corporate Finance 78:102321. https://doi.org/10.1016/j.jcorpfin.2022.102321.
  • Jeon, E., and M. Maula. 2022. “Progress Toward Understanding Tensions in Corporate Venture Capital: A Systematic Review.” Journal of Business Venturing 37 (4): 106226. https://doi.org/10.1016/j.jbusvent.2022.106226.
  • Johan, S., and Y. Li. 2022. “The Effects of Institutional Ownership on Corporate Venture Capital Investment Decisions.” Available at SSRN 4427743.
  • Kann, A. 2001. Strategic Venture Capital Investing by Corporations: A Framework for Structuring and Valuing Corporate Venture Capital Programs. California: Stanford University.
  • Katila, R., J. D. Rosenberger, and K. M. Eisenhardt. 2008. “Swimming with Sharks: Technology Ventures, Defense Mechanisms and Corporate Relationships.” Administrative Science Quarterly 53 (2): 295–332. https://doi.org/10.2189/asqu.53.2.295.
  • Kim, J. Y., H. K. Steensma, and H. D. Park. 2019. “The Influence of Technological Links, Social Ties, and Incumbent Firm Opportunistic Propensity on the Formation of Corporate Venture Capital Deals.” Journal of Management 45 (4): 1595–1622. https://doi.org/10.1177/0149206317720722.
  • Lin, J. Y. 2020. “What Affects New Venture firm’s Innovation More in Corporate Venture Capital?” European Management Journal 38 (4): 646–660. https://doi.org/10.1016/j.emj.2020.01.004.
  • Lin, L. 2013. “Private Equity Limited Partnerships in China: A Critical Evaluation of Active Limited Partners.” Journal of Corporate Law Studies 13 (1): 185–217. https://doi.org/10.5235/14735970.13.1.185.
  • Lin, L. 2021. Venture Capital Law in China. Cambridge: Cambridge University Press.
  • Masulis, R. W., and R. Nahata. 2009. “Financial Contracting with Strategic Investors: Evidence from Corporate Venture Capital Backed IPOs.” Journal of Financial Intermediation 18 (4): 599–631. https://doi.org/10.1016/j.jfi.2009.06.001.
  • McNally, B. 1997. Corporate Venture Capital: Bridging the Equity Gap in the Small Business Sector. London: Routledge.
  • Metrick, A., and A. Yasuda. 2010. “The Economics of Private Equity Funds.” Review of Financial Studies 23 (6): 2303–2341. https://doi.org/10.1093/rfs/hhq020.
  • Napp, J. J., and T. Minshall. 2011. “Corporate Venture Capital Investments for Enhancing Innovation: Challenges and Solutions.” Research-Technology Management 54 (2): 27–36. https://doi.org/10.5437/08953608X5402004.
  • Ozmel, U., T. E. Trombley, and M. D. Yavuz. 2019. “Outside Insiders: Does Access to Information Prior to an IPO Generate a Trading Advantage After the IPO?” Journal of Financial and Quantitative Analysis 54 (1): 303–334. https://doi.org/10.1017/S0022109018000546.
  • Ozmel, U., D. Yavuz, T. Trombley, and R. Gulati. 2020. “Interfirm Ties Between Ventures and Limited Partners of Venture Capital Funds: Performance Effects in Financial Markets.” Organization Science 31 (3): 1–22. https://doi.org/10.1287/orsc.2019.1325.
  • Pahnke, E. C., R. McDonald, D. Wang, and B. Hallen. 2015. “Exposed: Venture Capital, Competitor Ties, and Entrepreneurial Innovation.” Academy of Management Journal 58 (5): 1334–1360. https://doi.org/10.5465/amj.2012.0777.
  • Paik, Y., and H. Woo. 2017. “The Effects of Corporate Venture Capital, Founder Incumbency, and Their Interaction on Entrepreneurial firms’ R&D Investment Strategies.” Organization Science 28 (4): 670–689. https://doi.org/10.1287/orsc.2017.1133.
  • Park, H. D., and H. K. Steensma. 2013. “The Selection and Nurturing Effects of Corporate Investors on New Venture Innovativeness.” Strategic Entrepreneurship Journal 7 (4): 311–330. https://doi.org/10.1002/sej.1165.
  • Park, J. H., and Z. T. Bae. 2018. “When Are ‘Sharks’ Beneficial? Corporate Venture Capital Investment and Startup Innovation Performance.” Technology Analysis & Strategic Management 30 (3): 324–336. https://doi.org/10.1080/09537325.2017.1310376.
  • Robinson, D. T., and B. A. Sensoy. 2013. “Do Private Equity Fund Managers Earn Their Fees? Compensation, Ownership, and Cash Flow Performance.” Review of Financial Studies 26 (11): 2760–2797. https://doi.org/10.1093/rfs/hht055.
  • Sears, J. B., M. S. McLeod, R. E. Evert, and G. T. Payne. 2022. “Alleviating Concerns of Misappropriation in Corporate Venture Capital: Creating Credible Commitments and Calculative Trust.” Strategic Organization 20 (2): 318–340. https://doi.org/10.1177/1476127020926174.
  • Shuwaikh, F., and E. Dubocage. 2022. “Access to the Corporate investors’ Complementary Resources: A Leverage for Innovation in Biotech Venture Capital-Backed Companies.” Technological Forecasting and Social Change 175:121374. https://doi.org/10.1016/j.techfore.2021.121374.
  • Siegel, R., E. Siegel, and I. C. MacMillan. 1988. “Corporate Venture Capitalists: Autonomy, Obstacles, and Performance.” Journal of Business Venturing 3 (3): 233–247. https://doi.org/10.1016/0883-9026(88)90017-1.
  • Souitaris, V., and S. Zerbinati. 2014. “How Do Corporate Venture Capitalists Do Deals? An Exploration of Corporate Investment Practices.” Strategic Entrepreneurship Journal 8 (4): 321–348. https://doi.org/10.1002/sej.1178.
  • Strebulaev, I. A., and A. Wang. 2021. “Organizational Structure and Decision-making in Corporate Venture Capital.” SSRN Working Paper. No. 3963514
  • Sykes, H. B. 1990. “Corporate Venture Capital: Strategies for Success.” Journal of Business Venturing 5 (1): 37–47. https://doi.org/10.1016/0883-9026(90)90025-O.
  • Wang, L., F. Zhou, Y. An, and J. Yang. 2019. “Corporate Venture Capital: Technological Innovation or Value Creation? A Comparative Study of CVC- and IVC-Invested Chinese Listed Companies.” Asian Journal of Technology Innovation 27 (3): 257–279. https://doi.org/10.1080/19761597.2019.1669470.
  • Weber, C., and B. Weber. 2011. “Exploring the Antecedents of Social Liabilities in CVC Triads—A Dynamic Social Network Perspective.” Journal of Business Venturing 26 (2): 255–272. https://doi.org/10.1016/j.jbusvent.2009.07.004.
  • Yang, Y. 2012. “Bilateral Inter-Organizational Learning in Corporate Venture Capital Activity: Governance Characteristics, Knowledge Transfer, and Performance.” Management Research Review 35 (5): 352–378. https://doi.org/10.1108/01409171211222278.
  • Zhang, C. 2017. “The Distorted Governance Model of Venture Capital Limited Partnerships in China: A Political Perspective.” Business Law Review 38 (6): 234–240. https://doi.org/10.54648/BULA2017035.
  • Zhou, K. Z., G. Y. Gao, and H. Zhao. 2017. “State Ownership and Firm Innovation in China: An Integrated View of Institutional and Efficiency Logics.” Administrative Science Quarterly 62 (2): 375–404. https://doi.org/10.1177/0001839216674457.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.