Sustainable firms and legitimacy: Corporate venture capital as an effective endorsement

Sustainable firms and legitimacy: Corporate venture capital as an effective endorsement

By Deborah de Lange & Dave Valliere

Originally published online: 22 Nov 2019

ABSTRACT

This empirical study investigates the legitimizing effects of the presence of different investor types supporting entrepreneurial ventures. These effects may differ for sustainable ventures that face greater liabilities of newness due to powerful incumbents and negative halo effects of prominent failures. Drawing on institutional theory, this study developed and tested a model of investor legitimization with data on 184 entrepreneurial ventures using negative binomial regression. Findings suggest that the legitimizing effects of investor types for sustainable ventures differ from those of other ventures. In particular, corporate venture capital seems to legitimize sustainable ventures in a manner unlike other venture types.

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Sustainable firms and legitimacy: Corporate venture capital as an effective endorsement

SME open innovation for process development: Understanding process-dedicated external knowledge sourcing

By Jose-Luis Hervas-Oliver, Francisca Sempere-Ripoll, Carles Boronat-Moll & Sofia Estelles-Miguel

Originally published online: 17 Dec 2019

ABSTRACT

Small and medium enterprise (SME) open innovation has received attention only for new product development, overlooking the fact that process innovation is a strategy commonly pursued by SMEs which requires organizing search strategies or external knowledge sourcing for that purpose. Focusing on 3,348 process-oriented innovative SMEs, defined as those that usually and primarily only introduce process rather than product innovation, this study empirically identifies key external sources of SME innovation for process technologies, linking open innovation to SME performance, and highlighting a very important distinction to literature focused on product development. The results contribute to the literature on SME open innovation.

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