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Managing the new venture division: Research findings and implications for strategic management
Author(s) -
Burgelman Robert A.
Publication year - 1985
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250060104
Subject(s) - corporation , ambiguity , business , context (archaeology) , division (mathematics) , corporate venture capital , strategic management , entrepreneurship , process management , process (computing) , venture capital , marketing , entrepreneurial orientation , strategic planning , knowledge management , management , industrial organization , economics , computer science , operating system , paleontology , arithmetic , mathematics , finance , biology , programming language
The New Venture Division (NVD), an important organizational innovation to facilitate corporate entrepreneurship, so far has been used with mixed success. Systematic differences in terms of administrative processes, strategy‐making and participants' orientation create problems in the interfaces between the NVD and the rest of the corporation. Top management should realize that the NVD is a design for ambiguity. It should take steps to provide an adequate structural context for new venture activities, and to create a process for determining the strategic context of such activities in the corporation.