Why Corporate Venture Capital Funds Fail - Evidence from the European Energy Industry
Journal
World Review of Entrepreneurship, Management and Sustainable Development
ISSN
1746-0573
ISSN-Digital
1746-0581
Type
journal article
Date Issued
2009-08-01
Author(s)
Abstract
Corporate venture capital (CVC) is an important concept for large firms to manage innovation. CVC has been pioneered by major companies in the information technology, telecommunications and pharmaceutical industries. In 1999-2001, many large energy companies had launched CVC funds. In the most recent past, however, many energy companies have discontinued their activities, leading to what might be called the "Sudden Death syndrome" of corporate venture capital in this industry. Our qualitative research suggests that one factor that has played an important role in the failure of CVC funds, and has largely been overlooked in previous research, is parent firm organisational culture. We develop a conceptual model that explains the relationship between organisational culture and CVC fund survival, including the moderating roles of decision-making practices in organisations and parent firm skills in managing and measuring success. Our findings are based on 27 qualitative in-depth interviews with corporate and independent VCs in the energy industry.
Language
English
Keywords
corporate venturing
innovation management
venture capital
sustainable development
entrepreneurship
renewable energy
climate change
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Inderscience Enterprises
Publisher place
Olney, Bucks.
Volume
5
Number
4
Start page
353
End page
375
Pages
23
Subject(s)
Eprints ID
40496
File(s)![Thumbnail Image]()
open.access
Name
A02_Teppo_Wuestenhagen_WREMSD_2009.pdf
Size
293.8 KB
Format
Adobe PDF
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