Corporate Venture Capital: Realizing Resource Combinations And Transfers

In this paper, we build on a resource-based perspective of corporate venture capital programs by developing propositions on the processes by which "strategic" corporate venture capital (CVC) programs may outperform private venture capital (VC) funds. We argue, following a resource-based logic, that potential for value creation in corporate venture capital programs comes through the combination and/or transfer of resources between the portfolio companies with the corporation's business units. Yet, the processes by which this value may be realized suffer from significant obstacles including: lack of recognition, commitment and/or incentives, tenuous relationships with the corporation including the CVC and business units, and frictions between business units and the CVC organization. Propositions are, thus, developed regarding how these obstacles may be overcome based on clinical research in the network-related industries in Europe.