Innovation and Business Growth Through Corporate Venturing in Latin America: Analysis of Strategic Fit

ITESM Working Paper No. 03/2005

19 Pages Posted: 23 Aug 2005

See all articles by Dr. Rajagopal

Dr. Rajagopal

EGADE Business School, Tecnologico de Monterrey (ITESM) - Mexico City Campus; Metropolitan College, Boston University

Date Written: July 2005

Abstract

Corporate venturing as a strategy for international business development has become significant in view of the process of globalization resulting into the free trade and business development opportunities for multinational companies. This study is based on empirical investigation through semi-structured interviews administered to the managers of multinational companies operating in Mexico. The success of the corporate ventures in Mexico has been evaluated from the perspectives of economic and relational attributes. The results of the study showed that the degree of fit between a corporate parent and venture affects the success of the venture. The success is associated with high levels of commitment, competitive skills and dynamics in functional management of the venture. In the study the variables of economic and relational dimensions of external and internal fit have shown greater association with venture success. It has also been found that ventures opt for greater autonomy and less economic dependency with their parent ventures for leading success and this finding make an intuitive sense.

Keywords: Internal and external fit, finance and investment, business performance, economic and relational factors, venture autonomy

JEL Classification: G32, G34, L22, M13, M14

Suggested Citation

Rajagopal, Dr., Innovation and Business Growth Through Corporate Venturing in Latin America: Analysis of Strategic Fit (July 2005). ITESM Working Paper No. 03/2005, Available at SSRN: https://ssrn.com/abstract=784064 or http://dx.doi.org/10.2139/ssrn.784064

Dr. Rajagopal (Contact Author)

EGADE Business School, Tecnologico de Monterrey (ITESM) - Mexico City Campus ( email )

Carlos Lazo, 100
Santa Fe
Mexico City, DF 01389
Mexico

HOME PAGE: http://prof-rajagopal.com

Metropolitan College, Boston University ( email )

United States

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