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Design principles for corporate venture transition processes in established technology firms
Author(s) -
Burg Elco,
Jager Sjoerd,
Reymen Isabelle M. M. J.,
Cloodt Myriam
Publication year - 2012
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.2012.00695.x
Subject(s) - corporate venture capital , social venture capital , extant taxon , business , process (computing) , venture capital , transition (genetics) , empirical research , perspective (graphical) , industrial organization , marketing , process management , finance , computer science , biochemistry , chemistry , philosophy , epistemology , evolutionary biology , artificial intelligence , gene , biology , operating system
Corporate venturing has become a well‐known approach toward new business development and strategic renewal for established technology firms. However, without an effectively designed process for aligning and integrating a corporate venture in the established business, the firm increases the risk of venture failure. This paper provides a process perspective on corporate venture transition. Based on the results of an empirical study of six corporate venture transition processes, we present suitable actions for each of the different phases of the venture transition process. In addition, we indicate the proper timing for venture transition, which is one of the long‐standing difficulties in this area. Finally, we integrate the results of the empirical study with knowledge from extant literature in a set of design principles. These design principles provide practical guidelines to improve corporate venture transition processes.