An Integrative Model for Corporate Venturing

Abstract

This article develops a new model of corporate venturing that incorporates the integration of strategy, culture, and viability. Although strategy has received attention, it appears that most research views entrepreneurship as “the strategy” that leads to corporate renewal, revitalization, etc., without truly understanding the components of that “entrepreneurial strategy.” We've developed a process model that embeds the alignment of risk taking and remuneration and the rewards for success and failed attempts. Second, most current models of corporate venturing (e.g., the 3M model) are so steeped in the company's culture that they are not transferable to other organizations wishing to facilitate the entrepreneurial environment. New models such as Xerox New Enterprises (XNE) effectively integrate the components of strategy, culture, and viability resulting in a corporate entrepreneurship process model that is transferable to other companies. Finally, viability relies on existing proven models of opportunity recognition. Viability alone is not the singular test for corporate entrepreneurship unless it's sustained integratively with strategy and culture. This integrative model is a step toward unifying all the disparate research on corporate venturing.