The strategic role of corporate venture capital and its contribution to the innovativeness of the corporate parent firm

Abstract

This dissertation investigates the strategic role of Corporate Venture Capital (CVC) in impacting the innovativeness of their parent firms. By leveraging the lens of open innovation and corporate entrepreneurship, evidence suggests that CVC activities are increasingly pivotal in enabling firms to access disruptive technologies and explore new business opportunities. However, challenges such as balancing strategic and financial objectives and ensuring effective knowledge transfer persist. Based on 18 semi-structured interviews with CVC professionals and industry experts, a qualitative content analysis using Gioia9s methodology was conducted to derive key insights. The findings confirm prior research on the benefits of CVC, including strategic innovation diversification, access to new markets, and enhanced collaboration with startups. Nevertheless, challenges remain, particularly in aligning CVC initiatives with broader corporate strategies and overcoming internal cultural barriers. This study contributes to the literature by identifying six critical success factors for effective CVC implementation: establishing a dedicated legal structure, ensuring strategic alignment within the corporate hierarchy, fostering rapid decision-making processes, building a competent investment committee, recruiting the right talent, and maintaining a clear separation from M&A activities. Additionally, the research underscores the importance of CVC as a complement to traditional R&D rather than a substitute, reinforcing its role as a vital component in a holistic corporate innovation strategy. CVC units, when effectively structured and integrated, can significantly drive corporate innovation. However, their success depends on careful alignment with corporate goals and the ability to navigate the inherent tensions between strategic objectives and financial returns.

Date of Award	17 Oct 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Filipa Andrêa Godinho de Lancastre Serpa Pinto (Supervisor)