Template-Type: ReDIF-Paper 1.0
Author-Name: Burgers, J.H.
Author-Name-Last: Burgers
Author-Name-First: Henri
Author-Name: van den Bosch, F.A.J.
Author-Name-Last: van den Bosch
Author-Name-First: Frans
Author-Person: pbo133
Author-Name: Volberda, H.W.
Author-Name-Last: Volberda
Author-Name-First: Henk
Title: The Impact of Corporate Venturing on a Firm’s Competence Modes
Abstract: 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.
Creation-Date: 2007-09-11
File-URL: https://repub.eur.nl/pub/10536/ERS-2007-061-STR.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2007-061-STR
Classification-JEL: D21, L20, L22, L26, M, O31, O32, O33
Keywords: competence-based management, corporate venturing, flexibility, product and factor market dynamism
Handle: RePEc:ems:eureri:10536