Corporate venture capital as a means of radical innovation

Relational fit, social capital, and knowledge transfer

authored by

Barbara Weber, Christiana Weber

Abstract

The authors begin with an elaboration of a new theoretical concept: "relational fit", which consists of social capital and knowledge relatedness. They continue with an empirical analysis of the influence that "relational fit" between German corporate venture capital units (CVCs) and their innovative portfolio companies (PCs) has on knowledge transfer and knowledge creation in the CVC-PC dyad and subsequently on the PC's organizational performance. PC success is found to have dual significance for the corporation: high returns for the CVC unit and strategic potential for radical innovation. Integrating two hitherto neglected aspects of social capital - "conative fit" and "affective fit" - into their framework of "relational fit" the authors extend social capital theory. By combining the latter with the knowledge-based view of the firm they thereby demonstrate the interrelatedness and combined importance of the two concepts. Hence, "relational fit," proves to facilitate knowledge transfer and creation, which enhance organizational performance.

External Organisation(s)

Bibs Capital AG
Berlin Social Science Center (WZB)

Type

Article

Journal

Journal of Engineering and Technology Management - JET-M

Volume

24

Pages

11-35

No. of pages

25

ISSN

0923-4748

Publication date

2007

Publication status

Published

Peer reviewed

Yes

ASJC Scopus subject areas

Industrial relations, Engineering(all), Strategy and Management, Management Science and Operations Research, Information Systems and Management

Sustainable Development Goals

SDG 9 - Industry, Innovation, and Infrastructure

Electronic version(s)

https://doi.org/10.1016/j.jengtecman.2007.01.002 (Access: Closed)