This article investigates how prior corporate venture capital (CVC) relationships between two firms affect the likelihood of their subsequently entering a strategic alliance. Creating a portfolio of CVC investments provides the investing firm with a set of opportunities that can be pursued once the technological and market uncertainty have been reduced. If the technology appears to be promising, a follow-on investment, such as a strategic alliance, is made to ensure the transfer of the technological knowledge. This article shows that prior CVC investments can play a role in the formation of strategic alliances and investigates the conditions under which they are most likely to do so.

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Keywords corporate venture capital
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Note Article first published online: 5 JUN 2012
van de Vrande, V.J.A., & Vanhaverbeke, W.. (2012). How Prior Corporate Venture Capital Investments Shape Technological Alliances: A Real Options Approach. Entrepreneurship: Theory and Practice, 1–25. doi:10.1111/j.1540-6520.2012.00526.x