Economic Strategy

Economic Strategy

Redesigning the Development Model of Corporate Venture Capital Funds in Iran’s Institutional Context: A Strategic Analysis of SnowaVentures

Document Type : Original Article

Authors
Abolghasem Arabiun 1
Hamed Farsi 2
Amir Alhaji 3
1 Associate Professor, Department of Entrepreneurship, University of Tehran, Tehran, Iran
2 PhD Student, Department of Entrepreneurship, University of Tehran, Tehran, Iran
3 CEO, SnowaVentures (Corporate Venture Capital Arm of Entekhab Industrial Group), Isfahan, Iran
10.22034/es.2025.524066.1861
Abstract
In recent years, corporate venture capital (CVC) has emerged as a strategic lever for innovation and growth in large firms - especially in developing economies - yet most evidence still comes from developed markets, leaving open how CVC operates under complex, incomplete institutions. Using the Varieties of Institutional Systems framework (Fainshmidt & et al., 2016) - covering the roles of the state, financial markets, human capital, social capital, and corporate governance - this study examines SnowaVentures, the CVC arm of Iran’s Entekhab Industrial Group, to propose a context-fit model for developing CVC in Iran.
Based on semi-structured interviews with key managers and thematic analysis, the findings highlight three mutually reinforcing mechanisms: strategic alignment with the parent company’s value chain; operational adaptation through localized processes and evaluation criteria; and purposeful institutional engagement with public bodies and regional networks.
The results suggest that effective CVC in Iran and comparable settings depends less on replicating mature-market “forms” and more on designing “functions” that collectively bridge institutional voids, improving feasibility and impact. The study contributes a grounded, context-sensitive development model for Iran and adds to the CVC literature in the Global South. The paper concludes with actionable recommendations for managers and policymakers
Keywords
Varieties of Institutional Systems
Corporate Venture Capital (CVC)
Developing Countries
Organizational Innovation
Strategic Perspective

Subjects

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  • Receive Date 10 June 2025
  • Revise Date 31 July 2025
  • Accept Date 10 August 2025