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Innovation and Business Growth through Corporate Venturing in Latin America: Analysis of Strategic Fit

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Author Info

  • Rajagopal

    (Monterrey Institute of Technology & Higher Education, ITESM, Mexico City Campus)

Abstract

Corporate venturing as a strategy for international business development has become significant in view of the process of globalization resulting into the free trade and business development opportunities for multinational companies. This study is based on empirical investigation through semi-structured interviews administered to the managers of multinational companies operating in Mexico. The success of the corporate ventures in Mexico has been evaluated from the perspectives of economic and relational attributes. The results of the study showed that the degree of fit between a corporate parent and venture affects the success of the venture. The success is associated with high levels of commitment, competitive skills and dynamics in functional management of the venture. In the study the variables of economic and relational dimensions of external and internal fit have shown greater association with venture success. It has also been found that ventures opt for greater autonomy and less economic dependency with their parent ventures for leading success and this finding make an intuitive sense.

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File URL: http://128.118.178.162/eps/io/papers/0508/0508011.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Industrial Organization with number 0508011.

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Length: 19 pages
Date of creation: 12 Aug 2005
Date of revision:
Handle: RePEc:wpa:wuwpio:0508011

Note: Type of Document - pdf; pages: 19
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Web page: http://128.118.178.162

Related research

Keywords: Internal and external fit; finance and investment; business performance; economic and relational factors; venture autonomy;

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