Title: Coopetition in corporate venture capital: the relationship between network attributes, corporate innovativeness, and financial performance

Authors: Ronny Baierl; Sergey Anokhin; Dietmar Grichnik

Addresses: SRH Hochschule Berlin – The International Management University, Georgenstraße 7, 01097 Dresden, Germany ' Department of Marketing and Entrepreneurship, Center for Entrepreneurship and Business Innovation, Kent State University, P.O. Box 5190, Kent, OH 44242-0001, USA ' Chair for Entrepreneurship, Institute of Technology Management, University of St. Gallen, Dufourstrasse 40a, 9000 St. Gallen, Switzerland

Abstract: We analyse corporate venture capital (CVC) as a characteristic form of coopetition. In doing so, we apply the network perspective and examine the influence of three important network attributes - namely centrality, subgroups, and structural holes - on a coopetitor's innovativeness and subsequent financial performance. We test our hypotheses with the data from CVC investments of 162 corporations operating in a variety of industries over the course of six years. Our results show that a coopetitor's centrality in the respective CVC network positively affects corporate innovativeness, whereas belonging to a restricted subgroup suppresses innovativeness. In turn, innovativeness is positively related to subsequent financial performance. Thus, by strategically managing its position in a CVC network, coopetitors increase their own innovativeness that lead to superior financial outcomes.

Keywords: coopetition; corporate venture capital; CVC; corporate networks; centrality; subgroups; structural holes; corporate innovativeness; financial performance; firm performance; network attributes.

DOI: 10.1504/IJTM.2016.077978

International Journal of Technology Management, 2016 Vol.71 No.1/2, pp.58 - 80

Received: 04 Dec 2014
Accepted: 06 Nov 2015
Published online: 30 Jul 2016 *

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