Research On The Impact Of Corporate Venture Capital To Firm Innovation Performance

Different from the mode of low-end manufacturing and extensive growth in the past,China's economy is gradually entering a new era where innovation-driven strategy has become the mainstream.Due to their bloated structure and lack of flexibility,Chinese enterprises which grew up with the heavy consumption of resources face the threat of death all the time.For these mature enterprises,transformation and upgrading has become a pressing matter.Corporate entrepreneurship is becoming an important way for mature enterprises seeking transformation and upgrading under the new normal economic conditions in the country.More and more mature enterprises are beginning to place their hopes of corporate innovation on corporate entrepreneurship.However,the industrial understanding of how corporate entrepreneurship to promote innovation is based on the simple linear relationship between entrepreneurship and innovation.According to this logic,as one of the important forms of corporate entrepreneurship,corporate venture capital(C VC)will inevitably move toward the scale and diversification.However,is there any chance that innovation will be brought by the increase in the number and heterogeneity of firms in portfolios of CVC?Based on the theoretical perspective of organizational learning,this paper explores the relationship between portfolios of CVC and innovation performance of mature enterprises and examines the conditions under which portfolios of CVC influence corporate investor innovation performance.Based on the unbalanced panel data composed of CVC investment activities conducted by 33 listed companies in Shanghai and Shenzhen stock markets,the paper uses the regression model of negative binomial regression to test the relationship between the number of firms in portfolio,the degree of portfolio diversification and the innovation of enterprises.The results show that there is an inverted "U" relationship between the number of firms in portfolio,the degree of portfolio diversification and the innovation performance of mature enterprises,and the "U" relationship is positively affected by the knowledge base of mature enterprises and technological proximity between mature enterprises and venture enterprise.This study broadens the understanding of the academic community about the relationship between CVC and innovation performance of investment firms and also depicts broader strategic boundaries and encourages follow-up researchers to deconstruct the knowledge transfer process in CVC from distant search and organizational learning.Finally,based on the conclusions of relevant research,this paper puts forward some suggestions from two aspects of enterprises and government departments respectively.