Abstract
I empirically analyze the formation and transformation of corporate venture capitalists’ (CVC) social networks and social capital. I investigate the resulting structural and relational changes illuminating the process of interorganizational knowledge transfer and innovation generation of CVC programs. I find that CVC networks and the resulting social capital can ease knowledge transfer and innovation, but may over time also hinder it, thus turning social capital into a liability. Theoretically, I expand existing literature by investigating a so far unexplored intra-/interorganizational knowledge broker configuration, and I identify additional roles of the CVC manager as mediator and interventionist with a privileged bird’s-eye view.
Similar content being viewed by others
References
Adler, Paul S. and Soon-Wook Kwon (2002), Social Capital: Prospects for a New Concept, Academy of Management Review 27, 17-40.
Baker, Wayne E. (1990), Market Network and Corporate Behavior, American Journal of Sociology 96, 589–625.
Birkinshaw, Julian, Rob van Basten Batenburg, and Gordon Murray (2002), Corporate Venturing. The State of the Art and the Prospects for the Future, Working Paper of the London Business School, London.
Birley, Sue (1985), The Role of Networks in the Entrepreneurial Process, Journal of Business Venturing 1, 107–117.
Bourdieu, Pierre (1986), The Forms of Capital, in John G. Richardson (ed.), Handbook of Theory and Research for the Sociology of Education, New York: Greenwood, 241–258.
Brown, John S. and Paul Duguid (1998), Organizing Knowledge, California Management Review 40, 90–111.
Burt, Ronald S. (1992), Structural Holes, Cambridge, MA: Harvard University Press.
Burt, Ronald S. (2005), Brokerage and Closure. An Introduction to Social Capital, New York: Oxford University Press.
Chesbrough, Henry W. (2002), Making Sense of Corporate Venture Capital, Harvard Business Review 80, 90–99.
Cohen, Wesley M. and David A. Levinthal (1990), Absorptive Capacity: A New Perspective on Learning and Innovation, Administrative Science Quarterly 35, 128–152.
Coleman, James S. (1988), Social Capital in the Creation of Human Capital, American Journal of Sociology 94, 95–120.
Coleman, James S. (1990), Foundations of Social Theory, Cambridge, MA: Harvard University Press.
Covin, Jeffrey G. and Morgan P. Miles (1999), Corporate Entrepreneurship and the Pursuit of Competitive Advantage, Entrepreneurship Theory and Practice 23, 47–63.
Dubini, Paola and Howard E. Aldrich (1991), Personal and Extended Networks are Central to the Entrepreneurial Process, Journal of Business Venturing 6, 305–313.
Dushnitsky, Gary and Michael J. Lenox (2005), When Do Firms Undertake R&D by Investing in New Ventures?, Strategic Management Journal 26, 947–965.
Dyer, Jeffrey H. and Kentaro Nobeoka (2000), Creating and Managing a High-performance Knowledge-sharing Network: The Toyota Case, Strategic Management Journal 21, 271–291.
Dyer, Jeffrey H. and Harbir Singh (1998), The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage, Academy of Management Review 23, 660–679.
Eisenhardt, Kathleen M. (1989), Building Theories from Case Study Research, Academy of Management Review 14, 532–550.
Eisenhardt, Kathleen M. and Melissa E. Graebner (2007), Theory Building from Cases: Opportunities and Challenges, Academy of Management Journal, 50, 25–32.
Emirbayer, Mustafa and Jeff Goodwin (1994), Network Analysis, Culture, and the Problem of Agency, American Journal of Sociology 99, 1411–1454.
European Venture Capital Association (EVCA) (2008), unpublished data of CVC workshop held 7.–8. April 2008 in Brussel, Belgium.
Gabbay, Shaul M. and Roger T.A.J. Leenders (1999), The Structure of Advantage and Disadvantage, in Roger T.A.J. Leenders and Shaul M. Gabbay (eds.), Corporate Social Capital and Liability, Boston: Kluwer, 1–14.
Gargiulo, Martin and Mario Benassi (2000), Trapped in your own net? Network cohesion, structural holes, and the adaption of social capital, Organization Science 11, 183–196.
Glaser, Barney G. and Anselm Strauss (1979), The Discovery of Grounded Theory: Strategies for Qualitative Research, New York: Aldine publishing.
Granovetter, Mark S. (1992), Problems of Explanation in Economic Sociology, in Nitin Nohria and Robert G. Eccles (eds.), Networks and Organizations: Structure, Form, and Action, Boston: Harvard Business School Press, 25-56.
Granovetter, Mark S. (1985), Economic Action and Social Structure: The Problem of Embeddedness, American Journal of Sociology 91, 481–510.
Greene, Patricia G., Candida G. Brush, and Myra M. Hart (1999), The Corporate Venture Champion: A Resource-based Approach to Role and Process, Entrepreneurship Theory and Practice 23, 103–122.
Hansen, Morton T. (1999), The Search-transfer Problem: The Role of Weak Ties in Sharing Knowledge across Organization Subunits, Administrative Science Quarterly 44, 82–111.
Hansen, Eric L. (1995), Entrepreneurial Networks and New Organization Growth, Entrepreneurship Theory and Practice (Summer), 7–19.
Hardy, Cynthia and Deborah Dougherty (1997), Powering Product Innovation, European Management Journal 15, 16–27.
Hargadon, Andrew B. (1998), Firms as Knowledge Brokers: Lessons in Pursuing Continuous Innovation, California Management Revue 40, 209–227.
Hargadon, Andrew B. (2002), Brokering Knowledge: Linking Learning and Innovation, Research in Organizational Behavior 24, 41–85.
Hite, Julie M. and William S. Hesterly (2001), The Evolution of Firm Networks: From Emergence to Early Growth of the Firm, Strategic Management Journal 22, 275–286.
Inkpen, Andrew C. and Eric W.K. Tsang (2005), Social Capital, Networks, and Knowledge Transfer, Academy of Management Review 30, 146–165.
Kann, Antje (2000), Strategic Venture Capital Investing by Corporations: A Framework for Structuring and Valuing Corporate Venture Capital Programs, Dissertation, Stanford University, California.
Kanter, Rosabeth M. (1985), Supporting Innovation and Venture Development in Established Companies, Journal of Business Venturing 1, 47–60.
Kanter, Rosabeth M., Lisa Richardson, Jeffrey North, and Erika Morgan (1991), Engines of Progress: Designing and Running Entrepreneurial Vehicles in Established Companies: The New Venture Process at Eastman Kodak, 1983–1989, Journal of Business Venturing 6, 63–82.
Keil, Thomas (2000), External Corporate Venturing — Cognition, Speed, and Capability Development, Dissertation, Helsinki University of Technology, Finland.
Keil, Thomas, Shaker A. Zahra, and Markku V.J. Maula (2004), Explorative and Exploitative Learning from Corporate Venture Capital: Model of Program Level Factors, in K. Mark Weaver (ed.), in Academy of Management Best Paper Proceedings, ENT: L1–L6
Kirk, Jerome and Marc L. Miller (1986), Reliability and Validity in Qualitative Research, Newbury Park, CA.
Kogut, Bruce (2000), The Network as Knowledge: Generative Rules and the Emergence of Structure, Strategic Management Journal 21, 405–425.
Labianca, Guiseppe and Daniel J. Brass (2006), Exploring the social ledger: Negative relationships and negative asymmetry in social networks in organizations, Academy of Management Review 31, 596–614.
Lamnek, Siegfried (1995), Qualitative Sozialforschung, 3rd edition, Munich: Beltz.
Lane, Peter J. and Michael H. Lubatkin (1998), Relative Absorptive Capacity and Interorganizational Learning, Strategic Management Journal 19, 461–477.
Larson, Andrea (1992), Network Dyads in Entrepreneurial Settings: A Study of the Governance of Exchange Relationships, Administrative Science Quarterly 37, 76–104.
Larsson, Rikard, Lars Bengtsson, Kristina Henriksson, and Judith Sparks (1998), The Interorganizational Learning Dilemma: Collective Knowledge Development in Strategic Alliances, Organization Science 9, 285–305.
Lavie, Dovev (2006), The competitive advantage of interconnected firms: An extension of the resource based view, Academy of Management Review 31, 638–658.
Martin, Jeffrey A. and Kathleen M. Eisenhardt (2001), Exploring Cross-business Synergies, Academy of Management Proceedings 61, H1–H6.
Maula, Markku V.J. (2001), Corporate Venture Capital and the Value-added for Technology-based New Firms, Dissertation, Helsinki University of Technology, Finland.
Maula, Markku V.J., Erkko Autio, and Gordon Murray (2003), Prerequisites for the Creation of Social Capital and Subsequent Knowledge Acquisition in Corporate Venture Capital, Venture Capital 5, 117–134.
Maula, Markku V.J. and Gordon Murray (2002), Complementary Value-adding Roles of Corporate Venture Capital and Independent Venture Capital Investors, Journal of Bio-Law, 6–12.
Maurer, Indre and Mark Ebers (2006), Dynamics of Social Capital and Their Performance Implications: Lessons form Biotechnology Start-ups, Administrative Science Quaterly 51, 262–292.
McGrath, Rita G. and Ian C. MacMillan (1995), Discovery-driven Planning, Harvard Business Review 73, 44–54.
Miles, Matthew B. and A. Michael Huberman (1994), Qualitative Data Analysis — An Expanded Sourcebook, 2nd ed., Thousand Oaks.
Miller, Alex, Mary S. Spann, and Linda Lerner (1991), Competitive Advantages in New Corporate Ventures: The Impact of Resource Sharing and Reporting Level, Journal of Business Venturing 6, 335–350.
Moran, Peter (2005), Structural vs. Relational Embeddedness: Social Capital and Managerial Performance, Strategic Management Journal 26, 1129–1151.
Nahapiet, Janine and Sumantra Ghoshal (1998), Social Capital, Intellectual Capital, and the Organizational Advantage, Academy of Management Review 23, 242–266.
Nonaka, Ikujiro and Hirotaka Takeuchi (1995), The Knowledge-creating Company: How Japanese Companies Create the Dynamics of Innovation, New York: Oxford University Press.
Parkhe, Arvind, Stanley S. Wasserman, and David Allen Ralston (2006), New Frontiers in network theory development. Introduction to special topic forum, Academy of Management Review 31, 560–568.
Podolny, Joel M. and James N. Baron (1997), Resources and relationships: Social networks and mobility in the workplace, American Sociological Review 62, 673–693.
Portes, Alejandro and Julia Sensenbrenner (1993), Embeddedness and immigration: Notes on the social determinants of economic action, American Journal of Sociology 98, 1320–1350.
Putnam, Robert D. (1995), Bowling Alone: America’s Declining Social Capital, Journal of Democracy 6, 65–78.
Rauser, Ingo (2002), Value Added of CVC: How Do CVC Units Benefit from Their Organizational Corei Dissertation, University Bamberg.
Sandefur, Rebecca L., Edward O. Laumann, and John P. Heinz (1999), The Changing Value of Social Capital in an Expanding Social System: Lawyers in the Chicago Bar, 1975 and 1995, in Leenders, Roger T.A.J. and Shaul M. Gabbay (eds.), Corporate Social Capital and Liability, Boston: Kluwer, 217–233.
Schein, Edgar H. (1996), Three Cultures of Management: The Key to Organizational Learning, Sloan Management Review (Fall), 9–20.
Scholl, Wolfgang (2004), Innovation und Information. Wie in Unternehmen neues Wissen produziert wird, Göttingen: Hogrefe.
Schween, Karsten (1996), Corporate Venture Capital: Risikokapitalfinanzierung deutscher Industrieunternehmen, Wiesbaden: Gabler.
Stam, Wouter and Tom Elfring (2008), Entrepreneurial Orientation and New Venture Performance: The Moderating Role of Intra- and Extraindustry Social Capital, Academy of Management Journal 51, 97–112.
Strauss, Anselm L. and Juliet M. Corbin (1990), Basics of Qualitative Research: Grounded Theory Procedures and Techniques, Newbury Park, CA: Sage.
Thornhill, Stewart and Raphael H. Amit (2001), A Dynamic Perspective of Internal Fit in Corporate Venturing, Journal of Business Venturing 16, 25–50.
Weber, Christiana (2007), Organisation, Innovation und Wissen — eine multiperspektivische interorganisationale Analyse am Beispiel von Corporate Venture Capital, Habilitationsschrift, Helmut Schmidt University Hamburg.
Weber, Christiana and Meinolf Dierkes (2002), Risikokapitalgeber in Deutschland — Strukturmerkmale, Entscheidungskriterien, Selbstverständnis, Berlin: edition sigma.
Weber, Christiana and Markus Göbel (2007), When Knowledge Isn’t Just Knowledge: An Empirical Analysis of Knowledge Transfer in Triads of German Corporate Venture Capital from the Perspective of Social Constructivism, Paper presented at AOM Conference, 3.–8. August 2007 in Philadelphia.
Weber, Christiana and Barbara Weber (2008), Exploring the Antecedents of Social Liabilities in CVC-Triads — A Dynamic Social Network Perspective, Working Paper, Helmut Schmidt University Hamburg.
Weber, Barbara and Christiana Weber (2007), Corporate Venture Capital as a Mean for Radical Innovation — A Social Capital and Knowledge-based Perspective, Journal of Engineering and Technology Management 24, 11–35.
Weber, Christiana and Barbara Weber (2005), Corporate Venture Capital Organizations in Germany, Venture Capital 7, 51–74.
Yin, Robert K. (2003), Case Study Research: Design and Methods, 3rd ed., Thousand Oaks et al.: Sage Publications.
Yin, Robert K. (1991), Applications of Case Study Research, Washington D.C.
Yli-Renko, Helena, Erkko Autio, and Harry J. Sapienza (2001), Social Capital, Knowledge Acquisition, and Knowledge Exploitation in Technology-based Young Firms, Strategic Management Journal (Special Issue), 587–613.
Author information
Authors and Affiliations
Corresponding author
Additional information
I thank two anonymous referees for helpful comments.
Rights and permissions
About this article
Cite this article
Weber, C. Corporate Venture Capitalists with a ‘Bird’s-Eye View’ — A Dynamic Social Network Perspective. Schmalenbach Bus Rev 61, 195–224 (2009). https://doi.org/10.1007/BF03396784
Published:
Issue Date:
DOI: https://doi.org/10.1007/BF03396784