Managerial Attention and CVC Portfolio Diversification: Investigating Organizational Determinants

  • Simon U. Lee (Contributor)
  • Gunno Park (Contributor)
  • Jina Kang (Contributor)
  • Marhold, K. (Contributor)

Activity: Talk or presentationScience to science

Description

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.
Period9 Aug 201913 Aug 2019
Event titleAoM Annual Meeting 2019
Event typeUnknown
Degree of RecognitionInternational

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 502015 Innovation management
  • 509018 Knowledge management