Advertisement

Corporate Venture Capitalists and Independent Venture Capitalists: What do They Know, Who do They Know, and Should Entrepreneurs Care?

  • Markku Maula
  • Erkko Autio
  • Gordon Murray
Chapter
  • 1.6k Downloads
Part of the International Studies in Entrepreneurship book series (ISEN, volume 10)

Keywords

Social Capital Venture Capitalist Young Firm Venture Capital Financing Venture Capital Firm 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Adler, P.S. and S.W. Kwon, 2002, ‘Social capital: Prospects for a new concept', Academy of Management Review 27(1), 17–40.Google Scholar
  2. Aldrich, H., B. Rosen and W. Woodward, 1987, The impact of social networks on business foundings and profit: a longitudinal study, in K. H. Vesper (ed.), Frontiers of Entrepreneurial Research 1987, Wellesley, MA: Babson College, 154–168.Google Scholar
  3. Anderson, A.R. and S.L. Jack, 2002, ‘The articulation of social capital in entrepreneurial networks: a glue or a lubricant?', Entrepreneurship and Regional Development 14(3), 193–210.CrossRefGoogle Scholar
  4. Bank of England, 2001, ‘Financing of Technology-Based Small Firms', London: Bank of England, Domestic Finance Division.Google Scholar
  5. Barney, J.B., 1991, ‘Firm resources and sustained competitive advantage', Journal of Management 17(1), 99–120.CrossRefGoogle Scholar
  6. Barney, J.B., L.W. Busenitz, J.O. Fiet and D.D. Moesel, 1996, ‘New venture teams' assessment of learning assistance from venture capital firms', Journal of Business Venturing 11(4), 257–272.CrossRefGoogle Scholar
  7. Birkinshaw, J., R. van Basten Batenburg and G.C. Murray, 2002, ‘Corporate Venturing: The State of the Art and the Prospects for the Future', London: London Business School.Google Scholar
  8. Birley, S., 1985, ‘The role of networks in the entrepreneurial process', Journal of Business Venturing 1(1), 107–117.CrossRefGoogle Scholar
  9. Black, B.S. and R.J. Gilson, 1998, ‘Venture capital and the structure of capital markets: banks versus stock markets', Journal of Financial Economics 47(3), 243–277.CrossRefGoogle Scholar
  10. Bruton, G., V. Fried and R.D. Hisrich, 1997, ‘Venture Capitalist and CEO Dismissal', Entrepreneurship Theory and Practice 21(3), 41–54.Google Scholar
  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.Google Scholar
  12. Burgel, O., A. Fier, G. Licht and G.C. Murray, 2001, ‘The Rapid Internationalization of High Tech Young Firms in Germany and the United Kingdom', London and Berlin: The Anglo-German Foundation.Google Scholar
  13. Bygrave, W.D. and J.A. Timmons, 1992, Venture Capital at the Crossroads, Boston, MA: Harvard Business School Press.Google Scholar
  14. Chesbrough, H.W., 2002, ‘Making sense of corporate venture capital', Harvard Business Review 80(3), 90–99.PubMedGoogle Scholar
  15. Christensen, C.M., 1997, The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail, Boston, MA: HarperBusiness.Google Scholar
  16. Christensen, C.M. and R.S. Rosenbloom, 1995, ‘Explaining the Attackers Advantage — Technological Paradigms, Organizational Dynamics, and the Value Network', Research Policy 24(2), 233–257.CrossRefGoogle Scholar
  17. Clayton, J., B. Gambill and D. Hamed, 1999, ‘The curse of too much capital: Building new businesses in large corporations', The McKinsey Quarterly (3), 49–59.Google Scholar
  18. Coleman, J., 1988, ‘Social capital in the creation of human capital', American Journal of Sociology 94, S95–S120.CrossRefGoogle Scholar
  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.Google Scholar
  20. Cyr, L.A., D.E. Johnson and T.M. Welbourne, 2000, ‘Human Resources in Initial Public Offering Firms: Do Venture Capitalists Make a Difference?’ Entrepreneurship Theory and Practice (Fall), 77–91.Google Scholar
  21. DeCarolis, D.M. and D.L. Deeds, 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), 953–968.CrossRefGoogle Scholar
  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, 2002.Google Scholar
  23. Dube, M.R., 2000, ‘Intel Stands Tall Among Corporate Investors', in D. Barry (ed.), The Corporate Venturing Yearbook, Wellesley, MA: Asset Alternatives, 47–50.Google Scholar
  24. Ehrlich, S.B., A.F. Denoble, T. Moore and R.R. Weaver, 1994, ‘After the Cash Arrives — a Comparative-Study of Venture Capital and Private Investor Involvement in Entrepreneurial Firms', Journal of Business Venturing 9(1), 67–82.CrossRefGoogle Scholar
  25. Eisenhardt, K.M. and F.M. Santos, 2001, ‘Knowledge-Based View: A New Theory of Strategy?', in R. Whittington (ed.), Handbook of Strategy and Management, Thousand Oaks: Sage Publications, 3–30.Google Scholar
  26. Elango, B., V.H. Fried, R.D. Hisrich and A. Polonchek, 1995, ‘How Venture Capital Firms Differ', Journal of Business Venturing 10(2), 157–179.CrossRefGoogle Scholar
  27. Ernst & Young, 2002, ‘Ernst & Young Corporate Venture Capital Report', Fall 2002: Ernst & Young.Google Scholar
  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.Google Scholar
  29. European Commission, 1998, ‘Risk Capital Action Plan', Brussels: The Commission of the European Communities.Google Scholar
  30. Florida, R. and M. Kenney, 1988, ‘Venture Capital and High Technology Entrepreneurship', Journal of Business Venturing 3(4), 301–319.CrossRefGoogle Scholar
  31. Freeman, J., 1999, Venture Capital as an Economy of Time, in S. M. Gabbay (ed.), Corporate Social Capital and Liability, Norwell, MA: Kluwer, 460–482.Google Scholar
  32. Gabbay, S.M. and R.T.A.J. Leenders, 1999, ‘CSC: The structure of advantage and disadvantage', in S.M. Gabbay (ed.), Corporate social capital and liability, Boston, MA: Kluwer, pp. 1–14.Google Scholar
  33. Gompers, P.A., 1995, ‘Optimal Investment, Monitoring, and the Staging of Venture Capital', Journal of Finance 50(5), 1461–1489.Google Scholar
  34. Gompers, P.A. and J. Lerner, 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.Google Scholar
  35. Gompers, P.A. and J. Lerner, 2000b, The Venture Capital Cycle (3rd ed.), Cambridge, MA.: MIT Press.Google Scholar
  36. Gompers, P.A. and J. Lerner, 2001, The Money of Invention: How Venture Capital Creates New Wealth, Boston, MA: Harvard Business School Press.Google Scholar
  37. Gorman, M. and W.A. Sahlman, 1989, ‘What Do Venture Capitalists Do', Journal of Business Venturing 4(4), 231–248.CrossRefGoogle Scholar
  38. Grant, R. M., 1996, ‘Toward a knowledge-based theory of the firm', Strategic Management Journal 17, 109–122.CrossRefGoogle Scholar
  39. Hellmann, T., 2002, ‘A theory of strategic venture investing', Journal of Financial Economics 64(2), 285–314.CrossRefGoogle Scholar
  40. Hellmann, T. and M. Purl, 2002, ‘Venture capital and the professionalization of start-up firms: Empirical evidence', Journal of Finance 57(1), 169–197.CrossRefGoogle Scholar
  41. Hite, J.M. and W.S. Hesterly, 2001, ‘The evolution of firm networks: From emergence to early growth of the firm', Strategic Management Journal 22(3), 275–286.CrossRefGoogle Scholar
  42. Hsu, D.H., 2002, ‘What Do Entrepreneurs Pay for Affiliation?’ Working paper, Philadelphia, PA: The Wharton School, University of Pennsylvania.Google Scholar
  43. Intel Capital. (2003). About Intel Capital. Retrieved May 4, 2003, from the World Wide Web: http://www.intel.com/capital/about.htm#strategic Google Scholar
  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.Google Scholar
  45. Keil, T., 2002, External Corporate Venturing: Strategic Renewal in Rapidly Changing Industries, Westport, CT: Quorum Books.Google Scholar
  46. Kelley, D. and S. Spinelli, 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, Sweden.Google Scholar
  47. Kogut, B. and U. Zander, 1992, ‘Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology', Organization Science 3(3), 383–397.CrossRefGoogle Scholar
  48. Kogut, B. and U. Zander, 1993, ‘Knowledge of the firm and the evolutionary theory of the multinational corporation', Journal of International Business Studies 24, 625–645.Google Scholar
  49. Kortum, S. and J. Lerner, 2000, ‘Assessing the contribution of venture capital to innovation', Rand Journal of Economics 31(4), 674–692.CrossRefGoogle Scholar
  50. Lerner, J., 1995, ‘Venture Capitalists and the Oversight of Private Firms', Journal of Finance 50(1), 301–318.Google Scholar
  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.Google Scholar
  52. Macmillan, I.C., D.M. Kulow and R. Khoylian, 1989, ‘Venture Capitalists Involvement in Their Investments — Extent and Performance', Journal of Business Venturing 4(1), 27–47.CrossRefGoogle Scholar
  53. Maula, M.V.J., 2001, ‘Corporate Venture Capital and the Value-added for Technology-based New Firms', Doctoral dissertation, electronic copy available at http://lib.hut.fi/Diss/2001/isbn9512260816/, Espoo, Finland: Helsinki University of Technology, Institute of Strategy and International Business.Google Scholar
  54. Maula, M.V.J. and G.C. Murray, 2002, ‘Corporate Venture Capital and the Creation of U.S. 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, Oxford, UK: Blackwell Publishers, 164–187.Google Scholar
  55. McGee, J. and H. Thomas, 1986, ‘Strategic Groups — Theory, Research and Taxonomy', Strategic Management Journal 7(2), 141–160.Google Scholar
  56. McNally, K., 1997, Corporate venture capital: Bridging the gap in the small business sector, London: Routledge.Google Scholar
  57. Moore, G.A., 1995, Inside the Tornado: Marketing Strategies from Silicon Valley's Cutting Edge, New York, NY: Harper Business.Google Scholar
  58. Nahapiet, J. and S. Ghoshal, 1998, ‘Social capital, intellectual capital, and the organizational advantage', Academy of Management Review 23(2), 242–266.CrossRefGoogle Scholar
  59. NVCA, 2002, ‘The Economic Impact of the Venture Capital Industry on the U.S. Economy', study conducted by DRI-WEFA for NVCA, Arlington, VA: National Venture Capital Association.Google Scholar
  60. Penrose, E., 1959, The Theory of the Growth of the Firm, New York: Oxford University Press.Google Scholar
  61. Podolny, J.M., 2001, ‘Networks as the pipes and prisms of the market', American Journal of Sociology 107(1), 33–60.CrossRefGoogle Scholar
  62. Reynolds, P.D., W.D. Bygrave, E. Autio, L.W. Cox and M. Hay, 2002, 'Global Entrepreneurship Monitor 2002 Executive Report': Babson College, Ewing Marion Kauffman Foundation & London Business School.Google Scholar
  63. Roberts, E.B., 1991, ‘The Technological base of the new enterprise', Research Policy 20, 283–298.CrossRefGoogle Scholar
  64. Robinson, K.C. and P.P. McDougall, 2001, ‘Entry barriers and new venture performance: A comparison of universal and contingency approaches', Strategic Management Journal 22(6–7), 659–685.CrossRefGoogle Scholar
  65. Rosenstein, J., A.V. Bruno, W.D. Bygrave and N.T. Taylor, 1993, ‘The CEO, Venture Capitalists, and the Board', Journal of Business Venturing 8(2), 99–113.CrossRefGoogle Scholar
  66. Sahlman, W.A., 1990, ‘The Structure and Governance of Venture-Capital Organizations', Journal of Financial Economics 27(2), 473–521.CrossRefGoogle Scholar
  67. Sapienza, H.J., 1992, ‘When Do Venture Capitalists Add Value', Journal of Business Venturing 7(1), 9–27.CrossRefGoogle Scholar
  68. Sapienza, H.J., A.C. Amason and S. Manigart, 1994, ‘The Level and Nature of Venture Capitalist Involvement in Their Portfolio Companies: A Study of Three European Countries', Managerial Finance 20(1), 3–17.Google Scholar
  69. Sapienza, H.J., S. Manigart and W. Vermeir, 1996, ‘Venture capitalist governance and value added in four countries', Journal of Business Venturing 11(6), 439–469.CrossRefGoogle Scholar
  70. Saxenian, A., 1994, Regional Advantage: Culture and Competition in Silicon Valley and Route 128, Boston, MA: Harvard University Press.Google Scholar
  71. Seppä, T. and M.V.J. Maula, 2002, ‘and bargaining power in venture capital: The impact of investor prominence on company valuations', Working paper, Helsinki: Helsinki University of Technology.Google Scholar
  72. Shrader, R.C., 2001, ‘Collaboration and performance in foreign markets: The case of young high-technology manufacturing firms', Academy of Management Journal 44(1), 45–60.Google Scholar
  73. Smith, D.G., 2001, ‘How Early Stage Entrepreneurs Evaluate Venture Capitalists', The Journal of Private Equity 4(2), 33–46.Google Scholar
  74. Sorenson, O. and T.E. Stuart, 2001, ‘Syndication networks and the spatial distribution of venture capital investments', American Journal of Sociology 106(6), 1546–1588.CrossRefGoogle Scholar
  75. Spence, A.M., 1974, Market Signaling: Informational Transfer in Hiring and Related Screening Processes, Cambridge, MA: Harvard University Press.Google Scholar
  76. Spender, J.-C., 1996, ‘Making knowledge the basis of a dynamic theory of the firm', Strategic Management Journal 17(Winter Special Issue), 45–62.Google Scholar
  77. Steier, L. and R. Greenwood, 1995, ‘Venture Capitalist Relationships in the Deal Structuring and Post-Investment Stages of New Firm Creation', Journal of Management Studies 32(3), 337–357.Google Scholar
  78. Stuart, T.E., H. Hoang and R.C. Hybels, 1999, ‘Interorganizational endorsements and the performance of entrepreneurial ventures', Administrative Science Quarterly 44(2), 315–349.CrossRefGoogle Scholar
  79. Sykes, H.B., 1990, ‘Corporate Venture Capital — Strategies for Success', Journal of Business Venturing 5(1), 37–47.CrossRefGoogle Scholar
  80. Warne, K.F., 1988, ‘Essays on the Venture Capital Market', unpublished Ph.D. dissertation, New Haven, CT: Yale University.Google Scholar
  81. Wernerfelt, B., 1984, ‘A resource-based view of the firm', Strategic Management Journal 5, 171–180.Google Scholar
  82. Winters, T.E. and D.L. Murfin, 1988, ‘Venture Capital Investing for Corporate Development Objectives', Journal of Business Venturing 3(3), 207–222.CrossRefGoogle Scholar
  83. Young, R. and W.G. Rohm, 1999, Under the radar: how Red Hat changed the software business—and took Microsoft by surprise, Scottsdale, AZ: The Coriolis Group.Google Scholar
  84. Zahra, S.A., R.D. Ireland and M.A. Hitt, 2000, ‘International expansion by new venture firms: International diversity, mode of market entry, technological learning, and performance', Academy of Management Journal 43(5), 925–950.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media, Inc. 2005

Authors and Affiliations

  • Markku Maula
    • 1
  • Erkko Autio
    • 2
  • Gordon Murray
    • 3
  1. 1.Helsinki University of TechnologyHelsinki
  2. 2.HEC Université de LausanneLausanne
  3. 3.University of ExeterExeter

Personalised recommendations