Corporate venture capitalists and independent venture capitalists: What do they know, who do they know and should entrepreneurs care?

Venture Capital

Volumn 7, Issue 1, 2005, Pages 3-21

  Maula, Markku ^a   Autio, Erkko ^c   Murray, Gordon ^b  

^a AALTO UNIVERSITY   (Finland)

^b UNIVERSITY OF EXETER BUSINESS SCHOOL   (United Kingdom)

^c HEC Lusanne ^*  (Switzerland)

Author keywords

Corporate venture capital; Knowledge based view; Value added social capital; Venture capital

Indexed keywords

EID: 14544298300     PISSN: 13691066     EISSN: None     Source Type: Journal    
DOI: 10.1080/1369106042000316332     Document Type: Review

References (86)

1. Adler, P. S. & Kwon, S. W. (2002) Social capital: prospects for a new concept. Academy of Management Review, 27(1), pp. 17-40.
2. Aldrich, H., Rosen, B. & Woodward, W. (1987) The impact of social networks on business foundings and profit: a longitudinal study, in: K. H. Vesper (Ed.) Frontiers of Entrepreneurial Research 1987, pp. 154-168 (Wellesley. MA: Babson College).
3. Anderson, A. R. & Jack, S. L. (2002) The articulation of social capital in entrepreneurial networks: a glue or a lubricant? Entrepreneurship and Regional Development, 14(3), pp. 193-210.
4. Bank of England (2001) Financing of technology-based small firms (London: Bank of England, Domestic Finance Division).
5. Barney, J. B. (1991) Firm resources and sustained competitive advantage, Journal of Management, 17(1), pp.99-120.
6. Barney, J. B., Busenitz, L. W., Fiet, J. O. & Moesel, D. D. (1996) New venture teams' assessment of learning assistance from venture capital firms, Journal of Business Venturing, 11(4), pp. 257-272.
7. Birkinshaw, J., van Basten Batenburg, R. & Murray, G. C. (2002) Corporate Venturing: The State of the Art and the Prospects for the Future (London: London Business School).
8. Birley, S. (1985) The role of networks in the entrepreneurial process. Journal of Business Venturing, 1(1), pp. 107-117.
9. Black, B. S. & Gilson, R. J. (1998) Venture capital and the structure of capital markets: banks versus stock markets, Journal of Financial Economics, 47(3), pp. 243-277.
10. Bruton, G., Fried, V. & Hisrich, R. D. (1997) Venture capitalist and CEO dismissal, Entrepreneurship Theory and Practice, 21(3), pp. 41-54.
11. Burgel, O. (2000) UK Venture Capital and Private Equity as an Asset Class for Institutional Investors (London: London Business School and British Venture Capital Association).
12. Burgel, O., Fier, A., Licht, G. & Murray, G. C. (2001) The Rapid Internationalization of High Tech Young Firms in Germany and the United Kingdom (London and Berlin: The Anglo-German Foundation).
13. Bygrave, W. D. & Timmons, J. A. (1992) Venture Capital at the Crossroads (Boston, MA: Harvard Business School Press).
14. Chesbrough, H. W. (2002) Making sense of corporate venture capital, Harvard Business Review, 80(3), pp. 90-99.
15. Christensen, C. M. (1997) The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (Boston, MA: HarperBusiness).
16. Christensen, C. M. & Rosenbloom, R. S. (1995) Explaining the attackers advantage - technological paradigms, organizational dynamics, and the value network, Research Policy, 24(2), pp. 233-257.
17. Clayton, J., Gambill, B. & Harned, D. (1999) The curse of too much capital: building new businesses in large corporations, The McKinsey Quarterly, (3), pp. 49-59.
18. Coleman, J. (1988) Social capital in the creation of human capital, American Journal of Sociologv, 94, pp. S95-S120.
19. Corporate Executive Board (2000) Corporate venture capital: managing for strategic and financial returns. Working Council for Chief Financial Officers, Executive Inquiry Brief (Washington, DC: Corporate Executive Board).
20. Cyr, L. A., Johnson, D. E. & Welbourne, T. M. (2000) Human resources in initial public offering firms: do venture capitalists make a difference? Entrepreneurship Theory and Practice, (Fall), pp. 77-91.
21. DeCarolis, D. M. & Deeds, D. L. (1999) The impact of stocks and flows of organizational knowledge on firm performance: an empirical investigation of the biotechnology industry, Strategic Management Journal, 20(10), pp. 953-968.
22. Dimov, D. P. (2002) A new look at venture capital investing: An experience-based model of channelled attention. Paper presented at the Babson-Kauffman Entrepreneurship Research Conference, University of Colorado at Boulder, 5-8 June.
23. Dube, M. R. (2000) Intel stands tall among corporate investors, in: D. Barry (Ed.) The Corporate Venturing Yearbook, pp. 47-50 (Wellesley. MA: Asset Alternatives).
24. Ehrlich, S. B., Denoble, A. F., Moore, T. & Weaver, R. R. (1994) After the cash arrives - a comparative study of venture capital and private investor involvement in entrepreneurial firms, Journal of Business Venturing, 9(1), pp. 67-82.
25. Eisenhardt, K. M. & Santos, F. M. (2001) Knowledge-based view: a new theory of strategy? in: R. Whittington (Ed.) Handbook of Strategy and Management, pp. 3-30 (Thousand Oaks: Sage Publications).
26. Elango, B., Fried, V. H., Hisrich, R. D. & Polonchek, A. (1995) How venture capital firms differ. Journal of Business Venturing, 10(2), pp. 157-179.
27. Ernst & Young (2002) Ernst & Young Corporate Venture Capital Report, Fall 2002.
28. European Commission (1997) The First Action Plan for Innovation in Europe; Innovation for Growth and Employment (Brussels: DGXIII The Commission of the European Communities).
29. European Commission (1998) Risk Capital Action Plan (Brussels: The Commission of the European Communities).
30. Florida, R. & Kenney, M. (1988) Venture capital and high technology entrepreneurship, Journal of Business Venturing, 3(4), pp. 301-319.
31. Freeman, J. (1999) Venture capital as an economy of time, in: S. M. Gabbay (Ed.) Corporate Social Capital and Liability, pp. 460-482 (Norwell, MA: Kluwer).
32. Gabbay, S. M. & Leenders, R. T. A. J. (1999) CSC: the structure of advantage and disadvantage, in: S. M. Gabbay (Ed.) Corporate social capital and liability, pp. 1-14 (Boston, MA: Kluwer).
33. Gompers, P. A. (1995) Optimal investment, monitoring, and the staging of venture capital, Journal of Finance, 50(5), pp. 1461-1489.
34. Gompers, P. A. & Lerner, J. (2000a) The determinants of corporate venture capital success: Organizational structure, incentives, and complementarities, in: R. Morck (Ed.) Concentrated Corporate Ownership (Chicago, IL: University of Chicago Press).
35. Gompers, P. A. & Lerner, J. (2000b) The Venture Capital Cycle, 3rd edn (Cambridge, MA.: MIT Press).
36. Gompers, P. A. & Lerner, J. (2001) The Money of Invention: How Venture Capital Creates New Wealth (Boston, MA: Harvard Business School Press).
37. German, M. & Sahlman, W. A. (1989) What do venture capitalists do, Journal of Business Venturing, 4(4), pp. 231-248.
38. Grant, R. M. (1996) Toward a knowledge-based theory of the firm, Strategic Management Journal, 17, pp. 109-122.
39. Hellmann, T. (2002) A theory of strategic venture investing, Journal of Financial Economics, 64(2), pp. 285-314.
40. Hellmann, T. & Puri, M. (2002) Venture capital and the professionalization of start-up firms: empirical evidence, Journal of Finance, 57(1), pp. 169-197.
41. Hite, J. M. & Hesterly, W. S. (2001) The evolution of firm networks: from emergence to early growth of the firm, Strategic Management Journal, 22(3), pp. 275-286.
42. Hsu, D. H. (2002) What do entrepreneurs pay for affiliation? Working paper (Philadelphia, PA: The Wharton School, University of Pennsylvania).
43. Intel Capital (2003) About Intel Capital. Available at http://www.intel.com/capital/about.htm#strategic (accessed 4 May 2003).
44. Kann, A. (2000) Strategic venture capital investing by corporations: a framework for structuring and valuing corporate venture capital programs. Unpublished doctoral dissertation, Stanford University, CA.
45. Keil, T. (2002) External Corporate Venturing: Strategic Renewal in Rapidly Changing Industries (Westport, CT: Quorum Books).
46. Kelley, D. & Spinelli, S. (2001) The role of corporate investor relationships in the formation of alliances for corporate venture capital funded start-ups. Paper presented at the Babson College - Kauffman Foundation Entrepreneurship Research Conference 2001, Jönköping.
47. Kogut, B. & Zander, U. (1992) Knowledge of the firm, combinative capabilities, and the replication of technology, Organization Science, 3(3), pp. 383-397.
48. Kogut, B. & Zander, U. (1993) Knowledge of the firm and the evolutionary theory of the multinational corporation, Journal of International Business Studies, 24, pp. 625-645.
49. Kortum, S. & Lerner, J. (2000) Assessing the contribution of venture capital to innovation, Rand Journal of Economics, 31(4), pp. 674-692.
50. Lerner, J. (1995) Venture capitalists and the oversight of private firms, Journal of Finance, 50(1), pp. 301-318.
51. Lindsey, L. (2002) The venture capital keiretsu effect: an empirical analysis of strategic alliances among portfolio firms. SIEPR Policy paper No. 02-017 (Stanford, CA: Stanford Institute for Economic Policy Research).
52. Macmillan, I. C., Kulow, D. M. & Khoylian, R. (1989) Venture capitalists involvement in their investments - extent and performance, Journal of Business Venturing, 4(1), pp. 27-47.
53. Maula, M. V. J. (2001) Corporate venture capital and the value-added for technology-based new firms. Doctoral dissertation, Helsinki University of Technology, Institute of Strategy and International Business, available at http://lib.hut.fi/Diss/2001/isbn9512260816/.
54. Maula, M. V. J., Autio, E. & Murray, G. C. (2003) Prerequisites for the creation of social capital and subsequent knowledge acquisition in corporate venture capital, Venture Capital: An International Journal of Entrepreneurial Finance, 5(2), pp. 117-134.
55. Maula, M. V. J. & 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: R. D. Nixon (Ed.) Creating Value: Winners in the New Business Environment, pp. 164-187 (Oxford: Blackwell Publishers).
56. McGee, J. & Thomas, H. (1986) Strategic groups - theory, research and taxonomy, Strategic Management Journal, 7(2), pp. 141-160.
57. McNally, K. (1997) Corporate Venture Capital: Bridging the Gap in the Small Business Sector (London: Routledge).
58. Monica, M. C. & Gulati, R. (2003) Getting off to a good start: the effects of upper echelon affiliations on interorganizational endorsements, Organization Science, 14(3), pp. 244-263.
59. Moore, G. A. (1995) Inside the Tornado: Marketing Strategies from Silicon Valley's Cutting Edge (New York, NY: Harper Business).
60. Nahapiet, J. & Ghoshal, S. (1998) Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23(2), pp. 242-266.
61. NVCA (2002) The economic impact of the venture capital industry on the US economy. Study conducted by DRI-WEFA for NVCA (Arlington, VA: National Venture Capital Association).
62. Penrose, E. (1959) The Theory of the Growth of the Firm (New York: Oxford University Press).
63. Podolny, J. M. (2001) Networks as the pipes and prisms of the market, American Journal of Sociology, 107(1), pp. 33-60.
64. Reynolds, P. D., Bygrave, W. D., Autio, E., Cox, L. W. & Hay, M. (2002) Global entrepreneurship monitor 2002 executive report. Babson College, Ewing Marion Kauffman Foundation & London Business School.
65. Roberts, E. B. (1991) The technological base of the new enterprise, Research Policy, 20, pp. 283-298.
66. Robinson, K. C. & McDougall, P. P. (2001) Entry barriers and new venture performance: a comparison of universal and contingency approaches, Strategic Management Journal, 22(6-7), pp. 659-685.
67. Rosenstein, J., Bruno, A. V., Bygrave, W. D. & Taylor, N. T. (1993) The CEO, venture capitalists, and the board, Journal of Business Venturing, 8(2), pp. 99-113.
68. Sahlman, W. A. (1990) The structure and governance of venture-capital organizations, Journal of Financial Economics, 27(2), pp. 473-521.
69. Sapienza, H. J. (1992) When do venture capitalists add value, Journal of Business Venturing, 7(1), pp. 9-27.
70. Sapienza, H. J., Amason, A. C. & Manigart, S. (1994) The level and nature of venture capitalist involvement in their portfolio companies: a study of three European countries, Managerial Finance, 20(1), pp. 3-17.
71. Sapienza, H. J., Manigart, S. & Vermeir, W. (1996) Venture capitalist governance and value added in four countries, Journal of Business Venturing, 11(6), pp. 439-469.
72. Saxenian, A. (1994) Regional Advantage: Culture and Competition in Silicon Valley and Route 128 (Boston, MA: Harvard University Press).
73. Seppä. T. & Maula, M. V. J. (2002) Certification and bargaining power in venture capital: the impact of investor prominence on company valuations. Working paper (Helsinki: Helsinki University of Technology).
74. Shrader, R. C. (2001) Collaboration and performance in foreign markets: the case of young high-technology manufacturing firms, Academy of Management Journal, 44(1), pp. 45-60.
75. Smith, D. G. (2001) How early stage entrepreneurs evaluate venture capitalists, The Journal of Private Equity, 4(2), pp. 33-46.
76. Sorenson, O. & Stuart, T. E. (2001) Syndication networks and the spatial distribution of venture capital investments, American Journal of Sociology, 106(6), pp. 1546-1588.
77. Spence, A. M. (1974) Market Signaling: Informational Transfer in Hiring and Related Screening Processes (Cambridge, MA: Harvard University Press).
78. Spender, J.-C. (1996) Making knowledge the basis of a dynamic theory of the firm, Strategic Management Journal, 17(Winter Special Issue), pp. 45-62.
79. Steier, L. & Greenwood, R. (1995) Venture capitalist relationships in the deal structuring and post-investment stages of new firm creation, Journal of Management Studies, 32(3), pp. 337-357.
80. Stuart, T. E., Hoang, H. & Hybels, R. C. (1999) Interorganizational endorsements and the performance of entrepreneurial ventures, Administrative Science Quarterly, 44(2), pp. 315-349.
81. Sykes, H. B. (1990) Corporate venture capital - strategies for success, Journal of Business Venturing, 5(1), pp. 37-47.
82. Warne, K. F. (1988) Essays on the venture capital market. Unpublished PhD Dissertation Yale University, New Haven, CT.
83. Wernerfelt, B. (1984) A resource-based view of the firm. Strategic Management Journal, 5, pp. 171-180.
84. Winters, T. E. & Murfin, D. L. (1988) Venture capital investing for corporate development objectives, Journal of Business Venturing, 3(3), pp. 207-222.
85. Young, R. & Rohm, W. G. (1999) Under the radar: how Red Hat changed the software business-and took Microsoft by surprise (Scottsdale, AZ: The Coriolis Group).
86. Zahra, S. A., Ireland, R. D. & Hitt, M. A. (2000) International expansion by new venture firms: International diversity, mode of market entry, technological learning, and performance, Academy of Management Journal, 43(5), pp. 925-950.