Diese Arbeit bewertet, wie Investition in Corporate Venture Capital zur Wettbewerbsfähigkeit von großen Technologiekonzernen beitragen kann. Im ersten Abschnitt setzt der Autor den Rahmen für die Begrifflichkeiten im Kontext von Technologie und Innovation sowie der Firmen im Technologiemarkt. Zusätzlich werden grundlegende Thematiken die Technologiefirmen und deren Markt diskutiert.
Um einen Ansatz zur Bewertung zu bekommen wird im zweiten Kapitel die Thematik der Wettbewerbsfähigkeit von Technologiekonzernen in der aktuellen Marksituation untersucht. Wettbewerbsfähigkeit wird diskutiert und erklärt in dem eine größere Menge an Sekundärliteratur entlang eines Models, das von Feurer und Chaharbaghi entwickelt wurde, herangezogen und verarbeitet wird. Aus dieser Diskussion ergibt sich ein genereller Ansatz in bezug auf die Erhaltung der Wettbewerbsfähigkeit von Technologiekonzernen. Da die Aspekte, die die Wettbewerbsfähigkeit beeinflussen ein breites Spektrum abdecken, macht das zweite Kapitel den größten Anteil der Arbeit aus.
Nachdem ein Ansatz zur Erhaltung der Wettbewerbsfähigkeit entwickelt wurde, wird im dritten und letzten Kapitel untersucht, wie die Bemühungen von Technologiekonzernen zur Erhaltung der Wettbewerbsfähigkeit durch Investition in Corporate Venture Capital unterstützt werden. Generell kann man sagen, daß in den Schlußfolgerungen der Effekt von Corporate Venture Capital nicht verneint wird, aber das Wirkungsspektrum in einen klaren eingegrenzten Rahmen gesetzt wird.
Table of Contents
A. Introduction and methodology
B. Basics regarding technology and high technology concerns
I. Definitions and characteristics of technology and the technology market
1. Science and research
2. Technology
3. Technique
4. Types of research
5. Innovation
6. The concept of core technology
7. Technology S-curve and life-cycle
8. Technology intensity
9. Customers
10. Technology companies
11. The field of research “management of technology”
12. The scope of this paper
II. Target firms and the high technology market
1. Market trends
2. Strengths and weaknesses of target firms when compared with other types of technology companies
a. Weaknesses
b. Strengths
3. Window on technology
4. New technologies and new markets
C. Competitiveness
I. Customer values
1. Real option values for customers
2. Competitive values
II. Shareholder values
1. Real option values for shareholders
2. Relation of customer and shareholder values
III. The ability to act and react and the dynamism of the competitive environment
1. External organisational structures
2. Monopoly effect of innovation
3. Innovation and value creating business processes
a. General issues
b. Development process
c. Additional considerations to raise the customer value
d. Market introduction and diffusion
4. Reducing the threat by competitors’ technologies
5. Dealing with shareholder pressure
IV. Developing a competitiveness approach for target firms
1. Competitive intelligence
2. Competitive support and education
3. Shareholder communication
4. Research
5. Capability to focus development
6. Organisation structures and culture
7. Interdependencies
8. Investment levels
D. Corporate venture capital and competitiveness
I. Basics of corporate venture capital
1. Definition and differentiation
2. Types and internal organisation of CVC investment
3. Characteristics of the investment process
a. Finding suitable investments
b. Portfolios
c. Maintaining investments
d. Developing investments and divesting
II. Corporate venture capital investment and sustaining competitiveness
1. Potential benefits of corporate venture capital
2. Potential problems of corporate venture capital
3. How benefits and problems relate to competitive investments
4. Conclusions about CVC investment and sustaining competitiveness
Objectives and Research Themes
This dissertation evaluates how corporate venture capital (CVC) investments can assist large, diversified high-technology firms in maintaining their market competitiveness. The core research question addresses whether CVC serves as an appropriate strategic instrument for these firms to navigate the uncertainties and rapid changes characteristic of the high-technology market environment.
- Analysis of high-technology market dynamics and technology life cycles.
- Evaluation of competitiveness frameworks regarding shareholder and customer values.
- Assessment of organizational capabilities required for sustaining market leadership.
- Investigation into the strategic and operational objectives of corporate venture capital.
- Integration of empirical data to map the relationship between CVC activities and competitive sustainability.
Auszug aus dem Buch
3. Window on technology
From technology S-curves and life-cycles which were discussed in chapter one, it becomes obvious that the timing when to engage in a technology is a point that needs to be discussed. There are two dimensions to this issue. Firstly, when a company should take on a technology and secondly how the company can ensure it has the competence to quickly develop products and processes when the optimal time of adoption has come about. The first issue has led to research on technology monitoring and forecasting (Eden and Ronen, 1993; Chen and Small, 1996; Gold et al., 1980; Lemos and Porto, 1998) and decision making. A good example for the latter is given by Scarso (1996) (See figure 7: Timing and risk of technology adoption.)
The issue of competence has been discussed more recently. It not only has implications for research and development functions, but also for the management of company culture (Bakker et al., 1994). The concept of core competence stems from the tendency that technology cannot be forecasted anymore and stipulates that a company must be prepared to quickly develop products and processes by taking appropriate cultural and organisational measures once it has identified a profitable technology. The cultural dimension reflects the cross-functional, integrative characteristics of innovation which have been discussed in chapter one. Moreover, as the development cycle is more critical regarding resources than basic and applied research, building up appropriate competencies to shorten it becomes an important task.
Summary of Chapters
A. Introduction and methodology: Defines the scope of the paper, focusing on large high-tech corporations and their strategic use of corporate venture capital amidst market uncertainty.
B. Basics regarding technology and high technology concerns: Establishes a foundational terminology regarding science, research, innovation, and core technologies, and characterizes the high-tech market environment.
C. Competitiveness: Discusses the conceptual framework of competitiveness, balancing shareholder and customer interests, and proposes an approach for target firms to sustain their competitive edge.
D. Corporate venture capital and competitiveness: Examines the definition, processes, and strategic objectives of CVC, ultimately concluding how these investments complement broader competitive strategies.
Keywords
Corporate venture capital, competitiveness, high-technology, innovation, technology management, strategic management, market trends, customer value, shareholder value, organizational structure, research and development, CVC investment, technology life-cycle, technology diffusion, competitive intelligence.
Frequently Asked Questions
What is the fundamental focus of this research?
This work evaluates how large high-technology firms can use corporate venture capital (CVC) as a strategic tool to maintain competitiveness in a volatile and fast-paced market environment.
What are the central thematic fields covered?
The study covers technology life cycles, competitiveness frameworks (customer and shareholder value), the role of organizational culture, and the operational characteristics of corporate venture capital.
What is the primary objective of this thesis?
The primary aim is to determine if and how CVC investments contribute to sustaining competitiveness for large, diversified high-technology corporations.
Which scientific methods are applied in this work?
The author performs an extensive review of existing secondary literature and empirical studies to develop a framework for competitive investment, supplemented by qualitative analysis of CVC strategies.
What does the main body of the work address?
It first establishes a baseline definition of technology and high-tech market behavior, then proceeds to build a competitiveness framework, and finally correlates specific CVC investment goals with this competitiveness approach.
Which keywords characterize this paper?
Key terms include Corporate Venture Capital (CVC), competitiveness, technological innovation, organizational learning, and strategic management.
How do CVC investments specifically relate to competitive intelligence?
CVC investments act as a form of competitive intelligence, allowing firms to gain insight into emerging markets and new technologies by observing investee companies.
What role does organizational structure play in managing technology?
Organizational structures are critical for disseminating internal intelligence and fostering the flexibility required to react to technological shifts and market demands.
Why do Japanese and US firms differ in their CVC objectives?
The research indicates that Japanese firms often prioritize gaining options on new technologies, whereas US firms frequently place a stronger emphasis on achieving short-term financial returns.
What is the conclusion regarding CVC as a strategy?
The author concludes that while CVC is a valuable and complementary strategic tool, it is not a standalone solution and must be integrated into a comprehensive, continuous investment strategy in organizational and intelligence capabilities.
- Quote paper
- Karsten Jennisen (Author), 1999, An evaluation of the relevance of corporate venture capital investment as a means for diversified high-technology concerns to sustain competitiveness, Munich, GRIN Verlag, https://www.grin.com/document/185631
