THE PHENOMENON OF CORPORATE VENTURE CAPITAL FROM AN ENTREPRENEURIAL FINANCE PERSPECTIVE Dissertation for the degree of doctor oeconomiae (Dr. oec.) Submitted by Patrick Röhm To University of Hohenheim Faculty of Business, Economics and Social Science Institute of Marketing & Management Entrepreneurship (570 C) 2018 Supervisor: Univ.-Prof. Dr. Andreas Kuckertz Date of Disputation: December 03, 2018 Faculty Dean: Univ.-Prof. Dr. Karsten Hadwich Supervisor: Univ.-Prof. Dr. Andreas Kuckertz Second Reviewer: Univ.-Prof. Dr. Andreas Pyka I Table of contents List of figures ........................................................................................................................... V List of tables ............................................................................................................................ VI List of abbreviations ............................................................................................................. VII 1 Introduction ....................................................................................................................... 1 1.1 Disentangling the entrepreneurial activities of large corporations .............................. 2 1.2 Purpose of this dissertation .......................................................................................... 3 1.3 Underlying structure of the dissertation ...................................................................... 4 2 Exploring the Landscape of Corporate Venture Capital: A Systematic Review of the Entrepreneurial and Finance Literature ............................................................................... 9 2.1 Introduction ................................................................................................................. 9 2.2 Corporate venture capital as an external venturing mode ......................................... 11 2.3 Method of review....................................................................................................... 12 2.4 Revealing the structure of the CVC landscape using bibliographic coupling ........... 16 2.5 Overview of the articles considered .......................................................................... 19 2.6 Drivers of CVC adoption ........................................................................................... 30 2.6.1 Firm level drivers ............................................................................................... 30 2.6.2 Industry level drivers .......................................................................................... 30 2.6.3 CVC governance aspects .................................................................................... 31 2.6.4 CVC investment procedure ................................................................................ 34 2.6.5 Value-added contributions ................................................................................. 36 2.6.6 Implications for corporate mothers .................................................................... 38 2.7 Discussion .................................................................................................................. 41 2.8 Limitations ................................................................................................................. 45 2.9 Conclusion ................................................................................................................. 46 3 A World of Difference? The Impact of Corporate Venture Capitalists’ Investment Motivation on Startup Valuation .......................................................................................... 47 3.1 Introduction ............................................................................................................... 47 3.2 Literature review and motivation .............................................................................. 49 3.3 Exploring CVCs’ investment motivation .................................................................. 51 II 3.3.1 Data and sample design ...................................................................................... 51 3.3.2 Capturing investment motivation through CATA .............................................. 53 3.3.3 Clustering CVCs based on their investment motivation .................................... 56 3.4 Validating the identified clusters: CVCs’ investment motivation and startup valuation ............................................................................................................................... 60 3.5 Theoretical development and hypotheses .................................................................. 60 3.6 Measures and descriptive statistics ............................................................................ 63 3.6.1 Method of analysis ............................................................................................. 67 3.6.2 Results ................................................................................................................ 70 3.7 Discussion .................................................................................................................. 74 3.7.1 Theoretical and practical implications ............................................................... 74 3.7.2 Limitations and avenues for future research ...................................................... 75 3.8 Conclusion ................................................................................................................. 77 4 From Investment to Acquisition: The Impact of Exploration and Exploitation on CVC Acquisition ..................................................................................................................... 78 4.1 Introduction ............................................................................................................... 78 4.2 Theory and hypotheses .............................................................................................. 80 4.2.1 Corporate venture capital ................................................................................... 80 4.2.2 Exploration and exploitation in the context of CVC acquisition ....................... 82 4.2.3 The moderating role of product market relatedness ........................................... 84 4.3 Methodology .............................................................................................................. 86 4.3.1 Sample and data ................................................................................................. 86 4.3.2 Measures ............................................................................................................. 88 4.4 Results ....................................................................................................................... 91 4.5 Discussion .................................................................................................................. 97 4.5.1 Limitations and paths for future research ........................................................... 99 4.6 Conclusion ............................................................................................................... 100 5 Identifying Corporate Venture Capital Investors – A Data-Cleaning Procedure .. 101 5.1 Introduction ............................................................................................................. 101 5.2 Relevant databases for CVC research ..................................................................... 102 5.3 Data sample ............................................................................................................. 104 III 5.4 Data-cleaning process .............................................................................................. 104 5.5 Conclusion ............................................................................................................... 112 6 The Devil Inside? Organizational Voids Within Corporate Venture Capital Dyads 113 6.1 Introduction ............................................................................................................. 113 6.2 Literature review ...................................................................................................... 115 6.3 Isomorphic tendencies and the call for a mixed-method approach ......................... 117 6.4 Making isomorphic tendencies measurable ............................................................. 117 6.5 Disentangling potential driver of isomorphism ....................................................... 122 6.6 Discussion ................................................................................................................ 127 6.7 Conclusion ............................................................................................................... 130 7 Discussion of results and avenues for future research .............................................. 131 7.1 The CVC research front per se ................................................................................ 131 7.2 Motivation in a CVC dyad....................................................................................... 132 7.3 Isomorphism ............................................................................................................ 133 7.4 Conclusion ............................................................................................................... 134 References ............................................................................................................................