Confronting the challenges of corporate entrepreneurship: Guidelines for venture managers

This article addresses two important questions: First, what has been the overall track record of internal corporate venturing? Second, why do some organizations do much better at internal corporate venturing than others? After discussing the paradoxical nature of corporate entrepreneurship and the difficult managerial challenge that it presents, Ari Ginsberg and Michael Hay examine the historical track record of corporate venturing activities. Although they acknowledge the important role of senior managers in creating an entrepreneurial climate, they argue that corporate entrepreneurship is both a 'top down' and a 'bottom up' process reliant on the initiatives emanating from below as much as on the creation of a receptive climate from above. In taking this position, they maintain that venture managers can do much more than may be commonly acknow- ledged in contributing to the success of corporate entrepreneurship. To this end, the authors recommend specific steps that venture managers can take to protect the autonomy and flexibility of the venture, so as to increase the likelihood of its success.