Fueling innovation and growth strategies with corporate venturing

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.

Department dc:contributor.department

Sloan School of Management

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

1999

Author dc:creator

• Sisson, William M. (William Matteson), 1962-

Advisor dc:contributor.advisor

• D. Eleanor Westney.

• Sloan School of Management

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/9803

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/9803