An exploratory study of success and failure factors in internal corporate venturing

Abstract

This thesis explores the factors contributing to the successes and failures of internal corporate ventures. There are many large companies today using internal corporate ventures as a way to develop new businesses and products while creating potential growth for the parent company. Large companies believe that they can create these new businesses by combining the agility of a small startup with the corporate resources of the large firm. However, economic pressures, corporate bureaucracy, and lack of entrepreneurial experience can significantly affect the performance of these ventures. By creating an internal venture organization the corporation hopes to protect the new startup ideas from corporate interference. By reviewing past research and interviewing individuals from companies currently having some success in internal corporate venturing, this thesis hopes to show what factors positively and negatively affect the success of internal ventures. Additionally, differences between the literature and the interviews will be identified as potential future research topics. By understanding what factors can affect an internal venture; companies may be able to help prevent venture failure in the future.