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New Organizational Forms for Enhancing Innovation: The Case of Internal Corporate Joint Ventures


  • Edward J. Zajac

    (Department of Organization Behavior, J.L. Kellogg Graduate School of Management, Northwestern University, Evanston, Illinois 60208)

  • Brian R. Golden

    (Department of Management, University of Texas, Austin, Texas 78712)

  • Stephen M. Shortell

    (Department of Organization Behavior, J.L. Kellogg Graduate School of Management, Northwestern University, Evanston, Illinois 60208)


Organizations have increasingly turned to alternative organizational forms such as joint ventures and internal corporate ventures to enhance innovation. The present study examines the use of a similar, newly-developing organizational form for purposes of innovation; namely, the internal corporate joint venture (ICJV), which has characteristics of both traditional joint ventures and internal corporate venturing. This study presents an industry-specific analysis of innovation across 53 ICJV's (hospital/physician group combinations), using qualitative and quantitative analyses to identify those factors most strongly associated with the degree of innovativeness in these new organizations. The empirical findings suggest three factors most significantly associated with innovation in the ICJV's in our sample: (1) age similarity among organizational members, (2) the sponsoring organization's orientation towards innovation, and (3) ICJV participation in integrative activities with the sponsoring organization. The study concludes by suggesting that greater attention be devoted to studying "nested innovation," i.e., innovation within a new organizational form that is itself an administrative innovation.

Suggested Citation

  • Edward J. Zajac & Brian R. Golden & Stephen M. Shortell, 1991. "New Organizational Forms for Enhancing Innovation: The Case of Internal Corporate Joint Ventures," Management Science, INFORMS, vol. 37(2), pages 170-184, February.
  • Handle: RePEc:inm:ormnsc:v:37:y:1991:i:2:p:170-184
    DOI: 10.1287/mnsc.37.2.170

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    Cited by:

    1. Pierpaolo Parrotta & Dario Pozzoli & Mariola Pytlikova, 2014. "The nexus between labor diversity and firm’s innovation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(2), pages 303-364, April.
    2. Hussinger, Katrin & Dick, Johannes M.H. & Czarnitzki, Dirk, 2018. "Ownership concentration and innovativeness of corporate ventures," Research Policy, Elsevier, vol. 47(2), pages 527-541.
    3. Thomas Loilier, 2002. "Gestion de l'innovation:quels enseignements tirer du cas des logiciels libres?," Revue Finance Contrôle Stratégie,, vol. 5(3), pages 141-168, September.
    4. Lambert Jerman, 2013. "La Juste Valeur : Une Comptabilite Actuarielle Pour Les Marches ... Ou Les Comptables ?," Post-Print hal-00991877, HAL.
    5. Robert H. Brockhaus Sr., 1994. "Entrepreneurship and Family Business Research: Comparisons, Critique, and Lessons," Entrepreneurship Theory and Practice, , vol. 19(1), pages 25-38, October.
    6. Shaker A. Zahra, 1993. "A Conceptual Model of Entrepreneurship as Firm Behavior: A Critique and Extension," Entrepreneurship Theory and Practice, , vol. 17(4), pages 5-21, July.
    7. Dirk De Clercq & Dimo Dimov & Imanol Belausteguigoitia, 2016. "Perceptions of Adverse Work Conditions and Innovative Behavior: The Buffering Roles of Relational Resources," Entrepreneurship Theory and Practice, , vol. 40(3), pages 515-542, May.
    8. Zahra, Shaker A. & Covin, Jeffrey G., 1995. "Contextual influences on the corporate entrepreneurship-performance relationship: A longitudinal analysis," Journal of Business Venturing, Elsevier, vol. 10(1), pages 43-58, January.
    9. Ricart, Joan E. & Sieber, Sandra & Svejenova, Silviya, 1999. "Forms of organizing: What is new and why?," IESE Research Papers D/381, IESE Business School.
    10. Carlos De Abreu Dos Reis & Miguel Sastre Castillo & Salvador Roig Dobón, 2007. "Diversity and business performance: 50 years of research," Service Business, Springer;Pan-Pacific Business Association, vol. 1(4), pages 257-274, December.
    11. 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.
    12. John W. Boudreau, 2004. "50th Anniversary Article: Organizational Behavior, Strategy, Performance, and Design in Management Science," Management Science, INFORMS, vol. 50(11), pages 1463-1476, November.
    13. Sekiguchi, Tomoki & Huber, Vandra L., 2011. "The use of person–organization fit and person–job fit information in making selection decisions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 116(2), pages 203-216.
    14. Matthew S. Kraatz & Edward J. Zajac, 2001. "How Organizational Resources Affect Strategic Change and Performance in Turbulent Environments: Theory and Evidence," Organization Science, INFORMS, vol. 12(5), pages 632-657, October.
    15. Jonathan Peillex & Loredana Ureche-Rangau, 2016. "Identifying the Determinants of the Decision to Create Socially Responsible Funds: An Empirical Investigation," Journal of Business Ethics, Springer, vol. 136(1), pages 101-117, June.
    16. repec:dau:papers:123456789/13577 is not listed on IDEAS
    17. Østergaard, Christian R. & Timmermans, Bram & Kristinsson, Kari, 2011. "Does a different view create something new? The effect of employee diversity on innovation," Research Policy, Elsevier, vol. 40(3), pages 500-509, April.
    18. Herstad, Sverre J. & Sandven, Tore & Ebersberger, Bernd, 2015. "Recruitment, knowledge integration and modes of innovation," Research Policy, Elsevier, vol. 44(1), pages 138-153.
    19. Nerkar, Atul A. & McGrath, Rita Gunther & MacMillan, Ian C., 1996. "Three facets of satisfaction and their influence on the performance of innovation teams," Journal of Business Venturing, Elsevier, vol. 11(3), pages 167-188, May.
    20. Anokhin, Sergey & Wincent, Joakim & Oghazi, Pejvak, 2016. "Strategic effects of corporate venture capital investments," Journal of Business Venturing Insights, Elsevier, vol. 5(C), pages 63-69.
    21. Daniel, Elizabeth & Myers, Andrew & Dixon, Keith, 2012. "Adoption rationales of new management practices," Journal of Business Research, Elsevier, vol. 65(3), pages 371-380.
    22. Lambert Jerman, 2014. "Juste Valeur, Controle Interne Et Corporate Governance : Comment L’Information Financiere Ne Peut Pas Etre Comptable Et Transparente," Post-Print hal-01899776, HAL.
    23. Razvan Lungeanu & Ithai Stern & Edward J. Zajac, 2016. "When do firms change technology-sourcing vehicles? The role of poor innovative performance and financial slack," Strategic Management Journal, Wiley Blackwell, vol. 37(5), pages 855-869, May.
    24. repec:dau:papers:123456789/13729 is not listed on IDEAS
    25. Raassens, N., 2011. "The performance implications of outsourcing," Other publications TiSEM 07e9b053-67dc-4fc6-b550-1, Tilburg University, School of Economics and Management.


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