IDEAS home Printed from https://ideas.repec.org/a/eee/jbvent/v23y2008i4p423-444.html
   My bibliography  Save this article

Strategy-organization configurations in corporate venture units: Impact on performance and survival

Author

Listed:
  • Hill, Susan A.
  • Birkinshaw, Julian

Abstract

We develop a typology of corporate venture units, based on their strategic role in the corporation, and specifically on (a) their relative emphasis on exploration versus exploitation and (b) the internal versus external locus of opportunity they pursue. Following configurations logic, we argue that the structures and systems used by venture units will be a function of their strategic role, and that their performance will be higher when internal elements are aligned. We also argue that exploitation-oriented units will survive for longer than exploration-oriented units. Using primary data collected on 95 venture units during 2001-2003, we use configurational analyses to test and find support for our hypotheses.

Suggested Citation

  • Hill, Susan A. & Birkinshaw, Julian, 2008. "Strategy-organization configurations in corporate venture units: Impact on performance and survival," Journal of Business Venturing, Elsevier, vol. 23(4), pages 423-444, July.
    • Handle: RePEc:eee:jbvent:v:23:y:2008:i:4:p:423-444
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0883-9026(07)00041-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    2. Morgan P. Miles & Jeffrey G. Covin, 2002. "Exploring the Practice of Corporate Venturing: Some Common Forms and Their Organizational Implications," Entrepreneurship Theory and Practice, , vol. 26(3), pages 21-40, April.
    3. Dushnitsky, Gary & Lenox, Michael J., 2005. "When do incumbents learn from entrepreneurial ventures?: Corporate venture capital and investing firm innovation rates," Research Policy, Elsevier, vol. 34(5), pages 615-639, June.
    4. Thomas Keil, 2004. "Building External Corporate Venturing Capability," Journal of Management Studies, Wiley Blackwell, vol. 41(5), pages 799-825, July.
    5. Christiana Weber & Barbara Weber, 2005. "Corporate Venture Capital Organizations in Germany," Venture Capital, Taylor & Francis Journals, vol. 7(1), pages 51-73, January.
    6. Markku Maula & Erkko Autio & Gordon Murray, 2005. "Corporate Venture Capitalists and Independent Venture Capitalists: What do They Know, Who do They Know, and Should Entrepreneurs Care?," International Studies in Entrepreneurship, in: Tom Elfring (ed.), Corporate Entrepreneurship and Venturing, chapter 5, pages 101-126, Springer.
    7. Pramodita Sharma & James J. Chrisman, 1999. "Toward a Reconciliation of the Definitional Issues in the Field of Corporate Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 23(3), pages 11-28, April.
    8. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    9. Dushnitsky, Gary & Lenox, Michael J., 2006. "When does corporate venture capital investment create firm value?," Journal of Business Venturing, Elsevier, vol. 21(6), pages 753-772, November.
    10. Robert A. Burgelman, 1985. "Managing the new venture division: Research findings and implications for strategic management," Strategic Management Journal, Wiley Blackwell, vol. 6(1), pages 39-54, January.
    11. Siegel, Robin & Siegel, Eric & MacMillan, Ian C., 1988. "Corporate venture capitalists: Autonomy, obstacles, and performance," Journal of Business Venturing, Elsevier, vol. 3(3), pages 233-247.
    12. Alfred D. Chandler, 1969. "Strategy and Structure: Chapters in the History of the American Industrial Enterprise," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262530090, December.
    13. Sahlman, William A., 1990. "The structure and governance of venture-capital organizations," Journal of Financial Economics, Elsevier, vol. 27(2), pages 473-521, October.
    14. Danny Miller, 1986. "Configurations of strategy and structure: Towards a synthesis," Strategic Management Journal, Wiley Blackwell, vol. 7(3), pages 233-249, May.
    15. Kanter, Rosabeth, 1985. "Supporting innovation and venture development in established companies," Journal of Business Venturing, Elsevier, vol. 1(1), pages 47-60.
    16. Markku Maula & Erkko Autio & Gordon Murray, 2005. "Corporate Venture Capitalists and Independent Venture Capitalists: What do they know, Who do They Know and Should Entrepreneurs Care?," Venture Capital, Taylor & Francis Journals, vol. 7(1), pages 3-21, January.
    17. Sykes, Hollister B., 1986. "The anatomy of a corporate venturing program: Factors influencing success," Journal of Business Venturing, Elsevier, vol. 1(3), pages 275-293.
    18. Kenneth W. Rind, 1981. "The role of venture capital in corporate development," Strategic Management Journal, Wiley Blackwell, vol. 2(2), pages 169-180, April.
    19. Sykes, Hollister B., 1990. "Corporate venture capital: Strategies for success," Journal of Business Venturing, Elsevier, vol. 5(1), pages 37-47, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jeon, Euiju & Maula, Markku, 2022. "Progress toward understanding tensions in corporate venture capital: A systematic review," Journal of Business Venturing, Elsevier, vol. 37(4).
    2. Patrick Röhm, 2018. "Exploring the landscape of corporate venture capital: a systematic review of the entrepreneurial and finance literature," Management Review Quarterly, Springer, vol. 68(3), pages 279-319, August.
    3. Vareska Van de Vrande & Wim Vanhaverbeke, 2013. "How Prior Corporate Venture Capital Investments Shape Technological Alliances: A Real Options Approach," Entrepreneurship Theory and Practice, , vol. 37(5), pages 1019-1043, September.
    4. Basu, Sandip & Phelps, Corey & Kotha, Suresh, 2011. "Towards understanding who makes corporate venture capital investments and why," Journal of Business Venturing, Elsevier, vol. 26(2), pages 153-171, March.
    5. Lee, Simon U. & Park, Gunno & Kang, Jina, 2018. "The double-edged effects of the corporate venture capital unit's structural autonomy on corporate investors' explorative and exploitative innovation," Journal of Business Research, Elsevier, vol. 88(C), pages 141-149.
    6. Narayanan, V.K. & Yang, Yi & Zahra, Shaker A., 2009. "Corporate venturing and value creation: A review and proposed framework," Research Policy, Elsevier, vol. 38(1), pages 58-76, February.
    7. Maria Glinyanova & Ricarda B. Bouncken & Victor Tiberius & Antonio C. Cuenca Ballester, 2021. "Five decades of corporate entrepreneurship research: measuring and mapping the field," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1731-1757, December.
    8. Hicheon Kim & Johngseok Bae & Garry Bruton, 2012. "Business groups and institutional upheaval in emerging economies: Corporate venturing in Korea," Asia Pacific Journal of Management, Springer, vol. 29(3), pages 729-752, September.
    9. Daniel Reimsbach & Bastian Hauschild, 2012. "Corporate venturing: an extended typology," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 23(1), pages 71-80, September.
    10. Thomas Keil & Markku V.J. Maula & Cameron Wilson, 2010. "Unique Resources of Corporate Venture Capitalists as a Key to Entry into Rigid Venture Capital Syndication Networks," Entrepreneurship Theory and Practice, , vol. 34(1), pages 83-103, January.
    11. Rohrbeck, Rene & Döhler, Mario & Arnold, Heinrich M., 2007. "Combining spin-out and spin-in activities – the spin-along approach," MPRA Paper 5563, University Library of Munich, Germany.
    12. Vincent FRIGANT & Marina FLAMAND, 2015. "The diversity of carmakers\' behaviors vis-a-vis the Corporate Venture Capital," Cahiers du GREThA (2007-2019) 2015-24, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    13. Masucci, Monica & Parker, Simon C. & Brusoni, Stefano & Camerani, Roberto, 2021. "How are corporate ventures evaluated and selected?," Technovation, Elsevier, vol. 99(C).
    14. Fabio Bertoni & Massimo Colombo & Luca Grilli, 2013. "Venture capital investor type and the growth mode of new technology-based firms," Small Business Economics, Springer, vol. 40(3), pages 527-552, April.
    15. Lin, Shu-Jou & Lee, Ji-Ren, 2011. "Configuring a corporate venturing portfolio to create growth value: Within-portfolio diversity and strategic linkage," Journal of Business Venturing, Elsevier, vol. 26(4), pages 489-503, July.
    16. Colombo, Massimo G. & Grilli, Luca & Piva, Evila, 2006. "In search of complementary assets: The determinants of alliance formation of high-tech start-ups," Research Policy, Elsevier, vol. 35(8), pages 1166-1199, October.
    17. Thomas Keil & Erkko Autio & Gerard George, 2008. "Corporate Venture Capital, Disembodied Experimentation and Capability Development," Journal of Management Studies, Wiley Blackwell, vol. 45(8), pages 1475-1505, December.
    18. Patrick Röhm & Andreas Köhn & Andreas Kuckertz & Hermann S. Dehnen, 2018. "A world of difference? The impact of corporate venture capitalists’ investment motivation on startup valuation," Journal of Business Economics, Springer, vol. 88(3), pages 531-557, May.
    19. Valérie Revest & Alessandro Sapio, 2012. "Financing technology-based small firms in Europe: what do we know?," Small Business Economics, Springer, vol. 39(1), pages 179-205, July.
    20. Covin, Jeffrey G. & Garrett, Robert P. & Kuratko, Donald F. & Shepherd, Dean A., 2015. "Value proposition evolution and the performance of internal corporate ventures," Journal of Business Venturing, Elsevier, vol. 30(5), pages 749-774.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbvent:v:23:y:2008:i:4:p:423-444. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusvent .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.