You are here


The strategic management of a corporate venture capital program

L. Gregroy Henley, 2002
Faculty Advisor: Kathryn Harrigan


Equity investments of less than fifty percent ownership by large firms in small companies are examined. Large firms may capitalize on the innovative ability of small companies to explore for future opportunities that have the potential to improve their competitive position. For the small company, “corporate” venture capital can be an alternative to traditional venture capital and large firms may provide benefits that venture capital firms cannot. However, little rigorous empirical research has been conducted on corporate venture capital.

Innovation that develops new technologies, products and markets is a driver of long-term growth. The small company can provide innovative technologies, products, markets, entrepreneurial talent, etc. that may otherwise be unavailable to the large firm and which can be a major source for additional competencies to more effectively compete.

Diversification strategy is the primary academic lens that this study views minority investments. The strategic fit among firms, in terms of their relatedness to one another has been applied to acquisition strategies and to the management of firms' various business units. Corporate venture capital may be considered to be part a firm's diversification strategy and the relatedness framework can be applied to minority investments. Small companies can be classified as related, vertically related or unrelated and each type may share common characteristics and provide common benefits.

Hypotheses have been developed around the three research questions of what small companies make the most appropriate partners, how much interaction between the large firm and small company is necessary and what conditions help the small company become an acquisition candidate. Investments in related small companies are anticipated to be made when they are in their earliest organizational life cycle stage, but operate in more evolved industries. Small companies that are vertically related to the large firm will tend to operate in all industry life cycle stages. Unrelated small companies may provide a low cost, low risk opportunity for large firms to explore new areas that they have no expertise in and to learn about those areas before committing more resources and are expected in small companies that operate in the earliest industry life cycle stage.

Application Deadlines

Master of Science in Marketing >

For Fall 2016 Entry:

Available: August 1st, 2015
Deadline: January 4th, 2016


Master of Science in Financial Economics >

For Fall 2016 Entry:

Available: August 1st, 2015
Deadline: January 4th, 2016


Master of Science in Management Science and Engineering >

For Fall 2016 Entry:
To be determined


Available 8/1/15
Sept 2016

Deadline: 01/05/16

MS Marketing
Deadline: 01/04/16

MS Financial Economics
Deadline: 01/04/16


Doctoral Program News

Young Alumni Balseiro wins George B. Dantzig Dissertation Award

At the 2014 Informs national meeting, Santiago Balseiro was honored for his work in "Competition and Yield Optimization in Ad Exchanges". We congratulate Santiago on his accomplishment.

Read More Here

Ethan Rouen wins Deloitte Doctoral Fellowship in Accounting

The Deloitte Foundation has awarded $25,000 grants to 10 top accounting Ph.D. candidates through the Deloitte Foundation’s annual Doctoral Fellowship program. Given to students who plan to pursue academic careers upon graduation, the award will support the 2015 recipients’ final year of coursework and the subsequent year to complete their doctoral dissertation.

Read More Here

Honigsberg featured in Ideas at Work

The August issue of Ideas at Work features research that doctoral candidate Colleen Honigsberg led in conjunction with Sharon Katz.

Read More about Colleen

Wazlawek featured in Ideas at Work

Abbie Wazlawek's joint research with Professor Daniel Ames is featured in the June 24th, 2014 edition of Ideas at Work

Read More about Abbie

Ethan Rouen featured in Ideas at Work

Ethan Rouen's joint research with Professor Dan Amiram is featured in the May 15th, 2014 edition of Ideas at Work

Read More about Abbie

Rivas Wins Fellowship

The PhD program is proud to congratulate Miguel Duro Rivas, who was awarded the Nasdaq Educational Foundation Doctoral Dissertation Fellowship.

Read More about Miguel

Wong wins Deloitte Fellowship

We are proud to announce that Yu Ting (Forester) Wong is one of the recipients of the 2014 Deloitte Foundation Doctoral Fellowship in Accounting.

Read More About Yu Ting >

The PhD Program Congratulates John Yao

PhD student John Yao was a finalist in the 2013 M&SOM (Manufacturing & Service Operations Management) student paper competition.

Read More About John >

Honigsberg Named Postdoctoral Fellow

The PhD program is proud to congratulate Colleen Honigsberg, who was named the Postdoctoral Fellow in Corporate Governance at the Millstein Center at Columbia Law School in October 2013

Read More about Colleen >


Check Application Status

Students listening to classroom lecture

Once you've submitted your application, you can login and track your status by using the link below.

Check Status