Designing ventures that work: a study of successful and unsuccessful corporate ventures yields guidelines for designing ones that are more likely to achieve their goals

OVERVIEW: Corporate venturing (CV) is a widely accepted mechanism for incubating and developing new business within large established firms. Substantial research has been done on this subject, yet many firms have failed in their venturing efforts and booked large losses. In contrast, venturing at fi...

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Bibliographic Details
Published in:Research technology management 2008-03, Vol.51 (2), p.17
Main Authors: Shah, Chintan M, Zegveld, Marc A, Roodhart, Leo
Format: Article
Language:English
Subjects:
Evaluation
Joint ventures
Management
New business enterprises
Online Access:Get full text
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Summary:OVERVIEW: Corporate venturing (CV) is a widely accepted mechanism for incubating and developing new business within large established firms. Substantial research has been done on this subject, yet many firms have failed in their venturing efforts and booked large losses. In contrast, venturing at firms like IBM, Nokia and Shell is thriving, and has done well for more than a decade. This gives rise to the following questions: Why do most venturing initiatives fail and only some survive? How can a company establish CV that survives and delivers successfully? A study reveals three dominant elements of an effective corporate venturing effort: carrying out a thorough necessity analysis, achieving clarity of objectives and creating the right ambiance. KEY CONCEPTS: corporate venturing, venture unit, new business creation.
ISSN:0895-6308