2019
Chapter
The Oxford Handbook of Entrepreneurship and Collaboration

Interorganizational Collaboration and Start-Up Innovation

By: Vikas A. Aggarwal and Andy Wu

Format:Print

Abstract

This chapter presents an overview of the literature on collaborative relationships between start-ups and incumbent firms, focusing on the implications of these relationships for start-up innovation and performance. Value creation in such relationships occurs when assets are exchanged by the parties involved: collaboration allows for passive knowledge flows and active knowledge creation; in addition, collaboration provides start-ups with access to the complementary assets of the incumbent. At the same time, value creation presents opportunities for value capture by either party, where value capture by the start-up is determined by their knowledge appropriation regime and social capital. The form in which the start-up appropriates value has implications for the assets that enable value creation. The framework for value creation and capture in bilateral start-up-incumbent collaborations extends to start-up-incumbent collaborations in a platform and ecosystem context where there are fruitful future research opportunities.

Keywords

Alliance; Corporate Venture Capital; Complementary Assets; Appropriability; Business Startups; Joint Ventures; Knowledge; Innovation and Invention; Value Creation; Entrepreneurship

Citation

Aggarwal, Vikas A., and Andy Wu. "Interorganizational Collaboration and Start-Up Innovation." In The Oxford Handbook of Entrepreneurship and Collaboration, edited by Jeffrey J. Reuer, Sharon Matusik, and Jessica F. Jones, 611–627. New York: Oxford University Press, 2019.