Skip to main content

Please enter a keyword and click the arrow to search the site

Seeding a star or constructing a constellation?: corporate venturing as an ecosystem strategy


Academy of Management Proceedings


Strategy and Entrepreneurship

Authors / Editors

Dushnitsky G;Kang S


Publication Year



Four of the five largest companies by market capitalization (Apple, Alphabet (Google), Amazon and Facebook) were merely fledgling startups a couple of decades ago. Their success is attributed to the platform each firm has successfully developed and scaled. Accordingly, there is a surge in the number of established corporations investing in startups to develop an ecosystem around their own platform. The Corporate Venture Capital (CVC) literature, however, is predominantly ignorant of these efforts. Rather, it envisions CVC as a window on disruptive technologies. We document the presence of heterogenous CVC objectives using a unique data of almost 300 CVCs’ announcements. Our analysis captures an increase in the number of ecosystem-development CVC units. We also find that Ecosystem-CVCs experience superior short- and long-term performance, in comparison to CVCs with a different objective. Out study advances a new view of corporate venturing; as an ecosystem-development tool constructing a constellation of related startups, rather than the prevailing view of CVC as a tool for seeding and assimilating knowledge from a disruptive startup.

Available on ECCH


Select up to 4 programmes to compare

Select one more to compare
subscribe_image_desktop 5949B9BFE33243D782D1C7A17E3345D0

Sign up to receive our latest news and business thinking direct to your inbox


Sign up to receive our latest course information and business thinking

Leave your details above if you would like to receive emails containing the latest thought leadership, invitations to events and news about courses that could enhance your career. If you would prefer not to receive our emails, you can still access the case study by clicking the button below. You can opt-out of receiving our emails at any time by visiting: or by unsubscribing through the link provided in our emails. View our Privacy Policy for more information on your rights.