The Impact of Corporate Venturing on a Firm's Competence Modes
In this conceptual paper we investigate how corporate venturing influences an organization’s competences. The impact of various types of corporate ventures on the portfolio of strategic options of a firm’s competence modes (Sanchez, 2004a; Sanchez and Heene, 2002) will be assessed by distinguishing two fundamentally different dimensions of corporate venturing, technology and product (Block & MacMillan, 1993). We argue that the level of product and factor market dynamism mediates the effect of corporate venturing on a firm’s competence modes. Corporate ventures that significantly increase the level of product or factor market dynamics will lead to an increased flexibility in all five competence modes. These ventures will have a direct effect on the lower-order competence modes and an indirect, lagged effect on higher-order competence modes through feedback loops. The developed framework and the propositions contribute to managing the ability of a firm to change its coordination-, resource and operating flexibility in order to sustain value creation.
|Keywords||competence-based management, corporate venture, flexibility, product and factor market dynamics|
|Persistent URL||dx.doi.org/10.1016/S0749-6826(07)11005-2, hdl.handle.net/1765/14765|
|Note||Competence Building and Leveraging in Interorganizational Relations Advances in Applied Business Strategy, Volume 11, 117–140, Elsevier, Amsterdam, 2008|
Burgers, J.H., van den Bosch, F.A.J., & Volberda, H.W.. (2008). The Impact of Corporate Venturing on a Firm's Competence Modes. Elsevier. doi:10.1016/S0749-6826(07)11005-2