Experimenting in New Markets: A Capability-Based Perspective on Internal Corporate Venturing Program Performance

Abstract

New market entry via internal corporate venturing is a challenging task because of the inherently speculative and experimental nature of these entrepreneurial initiatives. We argue that there are common and predictable challenges associated with managing internal corporate venturing initiatives, and that appropriate venture choice, adaptation, and termination capabilities must be present within parent corporations for internal corporate venturing to fulfill its promise as a driver of value creation. In this chapter, we develop a conceptual model capturing the constellation of organizational competencies necessary for corporations to successfully navigate new markets that are concurrently new business arenas, thereby promoting overall internal corporate venturing program performance. Implications for future research and managerial practice are discussed.