Title: Performance measurement of corporate venture capital – balanced scorecard in theory and practice

Authors: Alexander Bassen, Doris Blasel, Ulrich Faisst, Moritz Hagenmuller

Addresses: University of Hamburg, School of Economics and Social Sciences, Chair for Finance and Investments, Von-Melle-Park 9, 20146 Hamburg, Germany. ' Siemens Venture Capital, Wittelsbacher Platz 2, D-80312 Munich, Germany. ' University of Augsburg, Business School, Universitatsstrabe 16, D-86135 Augsburg, Germany. ' Books on Demand GmbH, Gutenbergring 53, D-22848 Norderstedt, Germany

Abstract: A large number of corporations have invested in e-business ventures in order to create strategic values, such as enhanced innovation or improved entrepreneurship, within the firm|s network. The achievement of these objectives may take several years before resulting in financial returns for the corporation and is therefore very difficult to measure. At the same time, challenging market conditions have put financial valuations especially of e-business ventures under pressure over the last years. Consequently, the realisation of strategic returns becomes increasingly important to Corporate Venture Capital investors. This paper develops a performance measurement framework based on the Balanced Scorecard concept of Kaplan and Norton. The framework intends to make the results of Corporate Venture Capital activities more transparent by integrating both strategic and financial measures. The case of Siemens Venture Capital illustrates the practical use of a Balanced Scorecard. It shows the development process of the Siemens Venture Capital Scorecard and demonstrates its evolution over several years.

Keywords: balanced scorecard; corporate venture capital; intrapreneurship; performance measurement; e-entrepreneurship; electronic entrepreneurship; e-business; electronic business.

DOI: 10.1504/IJTM.2006.009253

International Journal of Technology Management, 2006 Vol.33 No.4, pp.420 - 437

Published online: 13 Mar 2006 *

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