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.

competence-based management, corporate venturing, flexibility, product and factor market dynamism
Firm Behavior (jel D21), Firm Objectives, Organization, and Behavior: General (jel L20), Firm Organization and Market Structure: Markets vs. Hierarchies; Vertical Integration; Conglomerates (jel L22), Entrepreneurship (jel L26), Business Administration and Business Economics; Marketing; Accounting (jel M), Innovation and Invention: Processes and Incentives (jel O31), Management of Technological Innovation and R&D (jel O32), Technological Change: Choices and Consequences; Diffusion Processes (jel O33)
Erasmus Research Institute of Management
hdl.handle.net/1765/10536
ERIM Report Series Research in Management
ERIM report series research in management Erasmus Research Institute of Management
Erasmus Research Institute of Management

Burgers, J.H, van den Bosch, F.A.J, & Volberda, H.W. (2007). The Impact of Corporate Venturing on a Firm’s Competence Modes (No. ERS-2007-061-STR). ERIM report series research in management Erasmus Research Institute of Management. Erasmus Research Institute of Management. Retrieved from http://hdl.handle.net/1765/10536