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A design science view on the relationship between internal corporate ventures and parent firms
Simon L. Schmidt, Katharina Scheidgen
Georg-August-Universität Göttingen, Deutschland
Firms can gain plentiful advantages with internal corporate ventures. To take advantage of them, the internal corporate venture and their parent firm need a fruitful relationship. This relationship is highly based on organizational cultures, i.e., values, beliefs, and rules, within the parent firm and within the internal corporate venture. The goal of this paper is to build and maintain a beneficial and resource-sharing relationship between internal corporate ventures and their parent firms taking culture into account.
While research deepened our understanding of internal corporate venture and parent firm relationship, e.g., via dominant coalition configurations and degrees of structural separation, it did not take the culture into account and put a focus on the relationship between the top-level management and the internal corporate venture. Taking culture into account is essential because internal corporate ventures and their parent firm often have different cultures shaping the relationship and the resource exchange; not only between top-level management and the internal corporate venture but between the whole parent firm and internal corporate venture.
This exploration design science study has the goal to find novel means-ends-relationships on how the relationship between an internal corporate venture and its parent firm ‘should be’. Therefore, we use strategic action fields as a lens to acknowledge the configurational perspective, culture, and environment of the parent firm and its internal corporate venture. Induced by an empirical study with 52 interviews (44 hours), we present five design requirements and 14 design principles to form and maintain a beneficial relationship between internal corporate ventures and their parent firm. Via the design knowledge, the study contributes to (1) contextualizing the internal corporate venture and parent firm relationship regarding the social and cultural forces shaping it and (2) formulating theoretical design object knowledge to form and maintain a beneficial relationship across different organizational cultures.
Microfoundations of unfolding hybrid ambidexterity: Design practices of incubator-parent company collaboration
Pauline Charlotte Reinecke1, Alexander Ricardo Beyer1, Svenja Damberg2,1, Thomas Wrona1
1Hamburg University of Technology; 2University of Twente, Niederlande
Incubators and similar organizational forms, which have proliferated in recent years, pursue the goal of helping companies to build ambidexterity. Also referred to as hybrid ambidexterity, these organizational forms combine multiple forms of contextual and structural ambidexterity. At the same time, this creates complex management challenges between autonomy and control and between integration and differentiation. To date, knowledge about the handling of these tensions remains scarce. We build on a six-month ethnographic study of EnergyCo to investigate the process of building an incubator. We show changes between a phase of more control that promotes integration and inhibits progress and a phase of more autonomy that promotes differentiation and inhibits trust. Highlighting these tensions, we contribute to research on the microfoundations of hybrid ambidexterity.
