In this paper, we focus on the potential innovation benefits to corporate venture capital, i.e. equity investments in entrepreneurial ventures by incumbent firms. In particular, we ask do firms that invest corporate venture capital learn about and appropriate new technologies and practices from those ventures they invest. Our investigation builds on two theoretical pillars. First, incumbent fir...

This paper argues that the truly unique role of venture capitalists is found in their information-mediating and governance functions, which can be understood only in the context of relationships between the “clustering” of entrepreneurial firms and (a club) of venture capitalists. The entrepreneurial firms in Silicon Valley compete in innovation and thus their activities are fundamentally subst...

Scholars and business professionals advocate inter-organizational partnerships as a key strategy for knowledge acquisition. This paper explores the limitations to such strategy by studying the conditions under which partnerships with innovative firms do not materialize. In the context of Corporate Venture Capital (i.e., equity investment in entrepreneurial ventures by established corporations),...

This article contributes to a better understanding of the process of entrepreneurial finance from a behavioral perspective. We specifically examine the cognitive features and interaction of three key-actors in entrepreneurial finance: entrepreneurs, business angels and venture capitalists and derive implications for performance (value creation and growth) when a young venture raises external eq...

Entrepreneurial self-efficacy (ESE) is often included in entrepreneurial intentions models to explain why some individuals are more likely than others to become entrepreneurs. An unsettled question among researchers is whether ESE differs between men and women. While early studies seem to suggest that men have higher ESE than women, more recent studies are inconclusive. Lacking empirical suppor...

Entrepreneurial Business Models in the German Software Industry: Companies, Venture Capital, and Stock Market Based Growth Strategies on the ‘Neuer Markt’

By conducting a structural equation modeling analysis, the present study tested a model of entrepreneurial intentions. We examined the effect of motivational factors and entrepreneurial exposure on students’ intentions to new venture creation through the mediating role of work attitudes and self-efficacy. Data were collected among 171 undergraduate students from three universities. On the one s...

a r t i c l e i n f o a b s t r a c t By demonstrating the importance of entrepreneurial exit to the entrepreneur, the firm, the industry, and the economy I contend that our understanding of the entrepreneurial process is incomplete without the inclusion of entrepreneurial exit. I define entrepreneurial exit and demonstrate how this conceptualization provides concepts that are unique from those...

Field Editor: G. Cassar This paper develops a theory of the participating convertible preferred (PCP) stock commonly used in venture capital settings. I show that the participation and convertibility features of PCP stock can be used to reduce information asymmetry between the venture and potential investors at the time of exit. Further, the convertibility feature of PCP helps in alleviating th...

The importance of entrepreneurial activity for the economic growth of countries is now well established. The relevant literature suggests important links between education, venture creation and entrepreneurial performance, as well as between entrepreneurial education and entrepreneurial activity. The primary purpose of this paper is to provide some insights about entrepreneurship education. The...