Fueling innovation and growth strategies with corporate venturing
Author(s)Sisson, William M. (William Matteson), 1962-
D. Eleanor Westney.
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This thesis covers the broad topic of Corporate Venturing as used by large, established firms and focuses mainly on U.S. institutions. A comprehensive review of corporate R&D is presented, evaluating recent industry trends as contrasted with the use of corporate venturing as an R&D resource. The argument is made to use corporate venturing to bring radical innovation into the firm. The role of innovation as a critical component of a corporation's growth strategy is also presented. The thesis considers basic principles of corporate venturing. Corporate venturing is analyzed and discussed from the perspective of strategy and formation. A framework for corporate venturing is presented that defines the "SC's" of corporate venturing. The thesis looks at the development of corporate venture models (as outlined by Roberts) and how internal ventures innovate (as outlined by David), and suggests that entrepreneur-led strategies have the highest degree of commercial success with moderate degrees of diversification. Finally, the thesis considers the role of corporate venturing as an innovation amplifier for firms to consider in their overall growth strategies. The results of a field study combined with a key literature analysis is presented, as well as information gathered from extensive personal and telephone interviews covering a variety of past and current players who use corporate venturing methods to fuel innovation and growth. A firm level analysis is made of corporate venturing programs. The different analysis techniques and methods are brought together to highlight Lessons learned and critical success factors from the various sources studied. Both the market and product analysis approach are used to develop a strategic corporate development framework, which suggests that corporate venturing is only one critical leg in the delta strategy for strategic development, combined with both incremental innovation of existing products and diversifying innovation strategies of mergers and acquisitions. It is concluded that Corporate Venturing is a strategic resource for firms to sustain innovation and long-term growth in their industries.
Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management, 1999.Includes bibliographical references (leaves 122-124).
DepartmentSloan School of Management
Massachusetts Institute of Technology
Sloan School of Management