Abstract
Drawing upon affordance theory, this study analyzes how corporate venture capital (CVC) investment managers evaluate digital technology ventures for investment. We argue that affordances, namely action potentials that arise from the relation between CVC investors and digital technology ventures, determine investment decision-making. Our study uses experimental data from a conjoint analysis of 432 investment decisions made by 54 CVC investment managers representing 44 CVC units from 34 industries. We find that CVC investment managers value characteristics of digital technology ventures that give rise to digital affordances as well as task-sharing affordances. Our findings show that CVC investment managers’ prior digital technology experience, entrepreneurial experience, and perceived CVC unit dependence on business units influence the interpretation of affordances, and thus the evaluation of investment opportunities. Our study contributes to the understanding of CVC investment decisions and extends affordance theory by a decision-making perspective.
Published Version
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