Absorptive capacity in new ventures: differences among corporate ventures and independent ventures

Abstract

This paper describes a study of the effects of venture origin on ACAP dimensions addressing two questions: how differently do corporate ventures (CVs) and independent ventures (IVs) build their ACAP? And, what are the effects of these differing ways of building ACAP on the new venture performance (NVP) and strategic variety? In answering these questions, we build on three related theoretical perspectives: resource-based view (Barney, 1991; Peteraf, 1993), knowledge-based theory (Grant, 1996), and the dynamic capabilities approach (Teece et al., 1997; Winter, 2003). Using data from face-to-face interviews and surveys on 140 new ventures, our results show that CVs primarily focus on developing the ACAP processes of acquisition and assimilation of new external knowledge when compared to IVs; and that IVs center their efforts in commercially exploiting the knowledge externally acquired. We did not find evidence of significant differences among CVs and IVs in their strategic variety. Yet, we found that an emphasis on potential ACAP is positively associated with the strategic variety of both CVs and IVs. Finally, our results reveal that ACAP is not directly related to NVP.