Corporate Venturing, Allocation of Talent, and Competition for Star Managers

  title={Corporate Venturing, Allocation of Talent, and Competition for Star Managers},
  author={Jean-Etienne de Bettignies and Gilles Chemla},
  journal={Management Science},
We provide new rationales for corporate venturing (CV), based on competition for talented managers. As returns to venturing increase, …rms engage in CV for reasons other than capturing these returns. First, higher venturing returns increase managerial compensation, to which …rms respond by increasing the power of incentives. Managers increase e¤ort, prompting …rms to reallocate them to new ventures, where the marginal product of e¤ort is highest. Second, as returns to venturing become large, CV… CONTINUE READING

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