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EXPLORING INTERNAL CORPORATE VENTURING IN SMEs: EFFECTUATION AT WORK IN A NEW CONTEXT

Author

Listed:
  • MAJBRITT ROSTGAARD EVALD

    (University of Southern Denmark, Engstien 1, DK-6000 Kolding, Denmark)

  • MARTIN SENDEROVITZ

    (University of Southern Denmark, Engstien 1, DK-6000 Kolding, Denmark)

Abstract

This exploratory study investigates how small- and medium-sized enterprises (SMEs) may engage in business development through internal corporate venturing (ICV). We show, based upon three case studies, how ICV in SMEs may be organised in a predominantly improvised manner wherein unforeseen new business opportunities are created in an emergent and iterative trial-and-error process without predetermined goals and without pre-planned strategies. This is a process, we argue, that resembles predominantly effectuation logic. The study contributes to the stream of extant ICV literature by focusing on how SMEs engage in ICV. Moreover, the study contributes to the development of effectuation theory by demonstrating that effectuation logic makes sense, not only in its original venture creation context as suggested by Sarasvathy, but also with regard to how established SMEs infuse more innovative thinking through improvised ICV activities. Findings illustrate that, overall, SMEs act more effectual than causational; and also more than parts of the ICV literature suggest. However, looking at SMEs' ICV activities over several years, it becomes apparent that effectual logics are combined with more causational, pre-planned strategic behaviour.

Suggested Citation

  • Majbritt Rostgaard Evald & Martin Senderovitz, 2013. "EXPLORING INTERNAL CORPORATE VENTURING IN SMEs: EFFECTUATION AT WORK IN A NEW CONTEXT," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 21(03), pages 275-299.
    • Handle: RePEc:wsi:jecxxx:v:21:y:2013:i:03:n:s021849581350012x
    DOI: 10.1142/S021849581350012X
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    References listed on IDEAS

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    1. van Damme, E.E.C., 1999. "Millennium miljonairs," Other publications TiSEM 130338fe-4980-46b9-a0d6-6, Tilburg University, School of Economics and Management.
    2. van Damme, E.E.C., 1999. "Privaat ministerie (grapje, ontslag)," Other publications TiSEM 107c9d44-d09a-42f4-8268-9, Tilburg University, School of Economics and Management.
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    Cited by:

    1. Richard A. Martina, 2020. "Toward a theory of affordable loss," Small Business Economics, Springer, vol. 54(3), pages 751-774, March.
    2. Elżbieta Duliniec, 2018. "Mechanizmy decyzyjne w przedsiębiorstwach wcześnie umiędzynarodowionych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 99-128.
    3. Yi Jiang & Charles-Clemens Rüling, 2019. "Opening the Black Box of Effectuation Processes: Characteristics and Dominant Types," Entrepreneurship Theory and Practice, , vol. 43(1), pages 171-202, January.
    4. Katrin M. Smolka & Ingrid Verheul & Katrin Burmeister–Lamp & Pursey P.M.A.R. Heugens, 2018. "Get it Together! Synergistic Effects of Causal and Effectual Decision–Making Logics on Venture Performance," Entrepreneurship Theory and Practice, , vol. 42(4), pages 571-604, July.
    5. Alexander McKelvie & Gaylen N. Chandler & Dawn R. DeTienne & Anette Johansson, 2020. "The measurement of effectuation: highlighting research tensions and opportunities for the future," Small Business Economics, Springer, vol. 54(3), pages 689-720, March.
    6. Kliewe, Thorsten & Alfert, Carina & Baaken, Thomas, 2019. "Corporate Venture Management und Entrepreneurial Marketing," PraxisWISSEN Marketing: German Journal of Marketing, AfM – Arbeitsgemeinschaft für Marketing, vol. 4(01/2019), pages 16-31.
    7. Reija A. Häkkinen, 2015. "Effectuating Person-Organization Fit - Effectuation in Organizations," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 4(2), pages 1-21, December.
    8. Nadeera Ranabahu & Mary Barrett, 2020. "Does practice make micro-entrepreneurs perfect? An investigation of expertise acquisition using effectuation and causation," Small Business Economics, Springer, vol. 54(3), pages 883-905, March.
    9. Maryia Akulava & Maribel Guerrero, 2023. "Entrepreneurial gendered ambidexterity in Belarusian SMEs," The Journal of Technology Transfer, Springer, vol. 48(6), pages 1919-1944, December.
    10. Prescott C. Ensign & Nicholas P. Robinson, 2016. "Offensive and Defensive Corporate Entrepreneurship: Learning to Think Like an Outsider," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 169-191, June.

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