Unique resources of corporate venture capitalists as a key to entry into rigid venture capital syndication networks

We investigate how corporate venture capitalists (CVCs) can rapidly attain central positions in venture capital syndication networks. Using data of CVC investments by U.S. corporations between 1996 and 2005, we complement prior research, which suggests that centrally positioned VCs predominantly invest together with other centrally positioned VCs. While we find clear support for the social network theory arguments that prior central positions in syndication networks significantly explain future network positions of CVCs, we also find a negative interaction effect between past centrality and corporate resources. This finding implies that resources of CVCs can substitute for their lack of prior centrality and allow them to gain rapidly central positions in rigid VC syndication networks

Diversification strategy and performance in Canadian manufacturing firms

In a study of the interrelationships between firm diversification, market power, and performance, Montgomery (1985) presents empirical evidence in support of the hypotheses that highly diversified firms will have lower market shares in their respective markets than less diversified firms and that the strategy of diversification does not contribute to firm profitability. The present paper re‐examines these results with attention to the special characteristics of the open Canadian economy in a sample of Canadian manufacturing firms. The authors report evidence in support of the hypothesis that diversification in technologically related activities results in economies of scope and greater firm performance.</p