Finance Area Seminar
| What | Seminar |
|---|---|
| When |
Nov 03, 2009
Nov 03, 2009
Nov 03, 2009 from 03:00 pm to 04:30 pm |
| Where | Pittsburgh Building 5114 |
| Contact Name | Chaina Porter |
| Contact Email | portec2@rpi.edu |
| Contact Phone | 518.276.6590 |
Shaker A. Zahra
Professor, Robert E. Buuck Chair of Entrepreneurship
Carlson School of Management, University of Minnesota
Strategic Management and Organization
ABSTRACT:
Incumbents often fail to recognize technological discontinuities early that can threaten their established market positions. This study posits that corporate venture capital (CVC), defined as equity investments that established companies make in start-ups created by independent entrepreneurs, can enhance incumbents’ ability to detect such discontinuities early. Based on a longitudinal study of CVC investments in four information and communications technology industry sectors between 1989-2000, we find that incumbent companies' membership and position in venture capital networks are related to the early recognition of technological discontinuities. Incumbents’ absorptive capacity significantly moderates this relationship. The results suggest that the unique role of CVC in learning about technological discontinuities is not replaced by other external mechanisms such as alliances, indicating that the different social networks in which incumbents participate provide different opportunities for learning.
No RSVP Required
