Managerial Attention and CVC Portfolio Diversification: Investigating Organizational Determinants

Beschreibung

Recently, CVC investments have attracted increasing attention as a corporate strategy to access various external knowledge sources, especially through diversified CVC portfolios. However, there is a lack of empirical research on the antecedent factors that determine the level of CVC portfolio diversification. We argue that the degree of CVC portfolio diversification is different for each corporate investor because of its different managerial attention on investment target selection. We empirically investigate the roles of three organizational determinants (TMT homogeneity, organizational slack constraints, and structural autonomy of the CVC unit) which can affect corporate investor’s strategic attention. Using panel data from corporate investors in U.S. high-tech industries, we find that the CVC parent firm’s TMT homogeneity and slack resource constraints negatively affect the CVC’s portfolio diversification. On the other hand, the structural autonomy given to the dedicated CVC unit was found to be positively related with CVC portfolio diversification.

Zeitraum	9 Aug. 2019 → 13 Aug. 2019
Ereignistitel	AoM Annual Meeting 2019
Veranstaltungstyp	Keine Angaben
Bekanntheitsgrad	International