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Corporate Venture Capital, Disembodied Experimentation and Capability Development
Author(s) -
Keil Thomas,
Autio Erkko,
George Gerard
Publication year - 2008
Publication title -
journal of management studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.398
H-Index - 184
eISSN - 1467-6486
pISSN - 0022-2380
DOI - 10.1111/j.1467-6486.2008.00806.x
Subject(s) - adaptation (eye) , corporate venture capital , process (computing) , knowledge management , business , capital (architecture) , venture capital , dynamic capabilities , process management , marketing , computer science , psychology , archaeology , finance , neuroscience , history , operating system
Studies invoking a capabilities lens often ascribe deliberateness in organizational decisions to develop new capabilities. Drawing on five longitudinal case studies of large, global firms in the information and communication technology sector, we examine how firms engender cognizance of their future capability needs in situations characterized by high decision‐making uncertainty. We develop a theoretical account of how firms use investments in start‐ups to actively engage in experimentation outside organizational boundaries, a learning process which we term as disembodied experimentation. Disembodied experimentation creates awareness of voids in the capability base of an incumbent and helps to overcome inertial restraints thereby influencing the decision to invest in capability development. The relationship between learning from disembodied experimentation and the decision to develop capabilities is moderated by knowledge brokering functions and adaptation complexity.