<div>
<p>In this
dissertation, I investigate how entrepreneurial ventures and industry
incumbents enter into interorganizational relationships in the context of
corporate venture capital (CVC) investments. In Essay 1, drawing from the
literature on employee mobility and entrepreneurship, I investigate how the
competitive tension between spinouts and their parent firms with regard to potential
knowledge diffusion influences other industry incumbents’ decisions to invest
in spinouts. Specifically, I suggest that a high level of technological overlap
between a spinout and its parent firm deters other industry incumbents from
investing in the spinout due to anticipated hostile actions by the parent firm.
Moreover, such negative effects can be amplified when the parent firm has a
strong litigiousness to claim its intellectual property rights. I also consider
that the negative effects can be mitigated when industry incumbents expect to
benefit from gaining indirect access to parent firms’ technological knowledge
through investing in spinouts.</p><p><br></p>
<p>In Essay 2, I
focus on academic hybrid entrepreneurs—defined as individuals who found their
own ventures while working at academic institutions (e.g., professors,
scientists)—and investigate how their intended exit strategy influences their
decisions regarding CVC financing. Specifically, I first propose that academic
hybrid entrepreneurs may have strong preferences for acquisitions over initial
public offerings as an exit strategy for their ventures because of the high
level of opportunity/switching costs associated with transitioning between
their academic roles and entrepreneurial activities. Drawing from the
literature on mergers and acquisitions, I then suggest that compared to other
ventures, those founded by academic hybrid entrepreneurs are more likely to
receive funding from CVC investors to effectively disclose the quality of their
resources and knowledge to potential acquirers.</p><p><br></p>
<p>In Essay 3, I examine
how the industry incumbents’ relative positions in technology domains vis-à-vis
other firms influence their CVC investment activities. Drawing upon the
literature on factor market, I conceptualize CVC investments as external
knowledge acquisition activities in knowledge factor markets consisting of
several different technology domains. Building on this conceptualization, I
emphasize that industry incumbents’ choices of investment areas are dependent
on their positions vis-à-vis their rival investors in a given technology
domain. This is because a firm’s technology position in a given domain can
simultaneously influence the opportunities and incentives that jointly
determine the likelihood of CVC investments in the domain. The theoretical
arguments and empirical results suggest that firms with intermediate technology
positions (i.e., technology intermediates) with moderate levels of
opportunities and incentives are more likely to make CVC investments than are
technology laggards and leaders with the lowest levels of opportunities and
incentives, respectively.</p></div>
| Identifer | oai:union.ndltd.org:purdue.edu/oai:figshare.com:article/7390580 |
| Date | 04 January 2019 |
| Creators | Joonhyung Bae (5929475) |
| Source Sets | Purdue University |
| Detected Language | English |
| Type | Text, Thesis |
| Rights | CC BY 4.0 |
| Relation | https://figshare.com/articles/Essays_on_interorganizational_relationships_between_entrepreneurial_ventures_and_industry_incumbents/7390580 |
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