Value Creation Reflecting CVC Strategic Orientations in Internet Platform Business Ecosystems: The Case of Tencent

Through establishing ecosystems around core technologies or products and fostering growth through investments in startups, internet platform companies make substantial contributions to the global economy. These investments often involve corporate venture capital (CVC) initiatives that support value creation. Firms must, therefore, account for the objectives of these initiatives, which aim to ensure value creation for business ecosystems, particularly in emerging markets such as China. This study presents a product-platform-ecosystem model derived from a case study of Tencent, a leading Chinese internet platform company. It analyzes seven strategic objectives of Tencent's venture capital activities that directly influence value creation in its business ecosystem. The analysis reveals how the strategic objectives underpinning CVC activities contribute to the value creation of platform ecosystems. The proposed value creation paradigm for internet platform ecosystems provides new insights into this rapidly growing market and offers guidelines for business managers and policymakers.