Designing Ventures that Work

Shah, Chintan M.

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Designing Ventures that Work

Research-Technology Management, Vol. 51, No. 2, pp. 17-25, March-April 2008

10 Pages Posted: 24 Aug 2009 Last revised: 30 Sep 2009

See all articles by Chintan M. Shah

Chintan M. Shah

Delft University of Technology - Faculty of Technology, Policy and Management; Bluewater Energy Services BV

Date Written: March 31, 2008

Abstract

Corporate venturing (CV) is a widely accepted mechanism for incubating and developing new business within large established firms. Substantial research has been done on this subject, yet many firms have failed in their venturing efforts and booked large losses. In contrast, venturing at firms like IBM, Nokia and Shell is thriving, and has done well for more than a decade. This gives rise to the following questions: Why do most venturing initiatives fail and only some survive? How can a company establish CV that survives and delivers successfully? A study reveals three dominant elements of an effective corporate venturing effort: carrying out a thorough necessity analysis, achieving clarity of objectives and creating the right ambiance.

Keywords: corporate venturing, venture unit, new business creation

JEL Classification: O32, M13, L1

Suggested Citation: Suggested Citation

Shah, Chintan M., Designing Ventures that Work (March 31, 2008). Research-Technology Management, Vol. 51, No. 2, pp. 17-25, March-April 2008, Available at SSRN: https://ssrn.com/abstract=1460049