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

@article{Bettignies2008CorporateVA,
  title={Corporate Venturing, Allocation of Talent, and Competition for Star Managers},
  author={Jean-Etienne de Bettignies and Gilles Chemla},
  journal={Management Science},
  year={2008},
  volume={54},
  pages={505-521}
}
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

From This Paper

Topics from this paper.

References

Publications referenced by this paper.
Showing 1-10 of 37 references

“Venture Capital Consentration and Dynamics: A Role for Path Dependence,”working

  • J. Brander, J.-E. de Bettignies
  • 2006
Highly Influential
4 Excerpts

“When Do Incumbents Learn From Entrepreneurial Ventures? Corporate Venture Capital and Investing Firm Innovation

  • G. Dushnitsky, M. Lenox
  • Rates,”Research Policy,
  • 2005
Highly Influential
10 Excerpts

“Stock Options for Non-Executive

  • J. Core, W. Guay
  • Employees,”Journal of Financial Economics,
  • 2001
Highly Influential
4 Excerpts

“Corporate Venture Capitalists: Autonomy, Obstacles, and Performance,”Journal

  • R. Siegel, E. Siegel, I. MacMillan
  • Business Venturing,
  • 1988
Highly Influential
4 Excerpts

2005b, “When Do Firms Undertake R&D By Investing in New Ventures?,”Strategic

  • G. Dushnitsky, M. Lenox
  • Management Journal,
  • 2005
Highly Influential
4 Excerpts

“R&D Institutional Arrangements: Start-up Ventures Versus Internal Lab,”mimeo Tulane University, Universidad ORT

  • M. Dix, N. Gandelman
  • 2003
Highly Influential
3 Excerpts

Similar Papers

Loading similar papers…