Two's company, three's a crowd: The impact of corporate venture capital unit's investment partners on the corporate investor's innovation performance

Ruling Zhang, Killian J. McCarthy, Xiao Wang*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

This paper examines how the number, quality, and depth of the relationships, between a corporate venture capital (CVC) unit and the traditional venture capital (VC) that it coinvests with, affect the corporate investor's innovation performance. We find that there is an inverted U-shaped relationship between the number and the quality of the CVC unit's partners and the corporate investor's innovation performance. The depth of the relationship weakens the diminishing benefits of coinvesting with many partners. Jointly, our findings illustrate the danger of the ‘more is always better’ principle in terms of VC centrality and provide in-depth insights for corporate investors to organize innovation.

Original languageEnglish
Pages (from-to)975-987
Number of pages13
JournalManagerial and Decision Economics
Volume43
Issue number4
DOIs
Publication statusPublished - Jun 2022

Fingerprint

Dive into the research topics of 'Two's company, three's a crowd: The impact of corporate venture capital unit's investment partners on the corporate investor's innovation performance'. Together they form a unique fingerprint.

Cite this