Title: Don't throw in the towel too early! How agency conflicts affect the survival of corporate venture capital units
Authors: Daniel Fischer; Deniz Philipp Kruse; Hannes Leonardy; Christiana Weber
Addresses: Institute of Management and Organization, Leibniz Universität Hannover, Germany ' Institute of Management and Organization, Leibniz Universität Hannover, Germany ' Institute of Management and Organization, Leibniz Universität Hannover, Germany ' Institute of Management and Organization, Leibniz Universität Hannover, Germany
Abstract: We empirically investigate the largely unexplored relationship between corporate top management teams (TMT) and CVC unit managers. Doing so, we provide new insights into the interplay between TMT decisions and CVC managers' behaviour and how agency conflicts between them influence the survival of CVC units. Using a proprietary dataset of 64 CVC units we apply fsQCA in order to identify the interrelatedness, causal asymmetry and equifinality of agency-related conditions leading to survival. We relativise former literature by demonstrating that financial incentivisation of CVC managers need to be complemented by additional factors to impact the survival of CVC units. Further, we conclude that the decision-making autonomy of CVC managers seem to work as a form of non-financial incentive. Finally, we demonstrate that the configuration of providing strategic support, investing with high strategic proximity, and non-autonomously acting CVC managers is related to non-survival of the CVC unit.
Keywords: corporate venture capital; CVC; survival; agency theory; configuration; qualitative comparative analysis; QCA.
International Journal of Entrepreneurial Venturing, 2019 Vol.11 No.6, pp.568 - 597
Received: 16 Nov 2017
Accepted: 18 Oct 2018
Published online: 25 Nov 2019 *