How does the new entry organization turn into an internal corporate venture?

Abstract

We investigate how existing companies realize entrepreneurial opportunities and enter a new business. The new entry business strategy was initiated when the parent company in the electronics hardware industry recognized the necessity of entering the software industry. The paper reveals some interesting points by analyzing the process of an internal corporate venture (ICV) created by the parent’s R&D. First, the parent company let the new business entry organization with technology by R&D become an ICV despite that organization performing well among another businesses in the parent company. Second, comparing previous studies, we see ICV is not only created by an autonomous strategy from the parent strategy. Therefore, corporate strategy could be reformed if it failed. This case study leads the future research question about the parent ability to manage new entering businesses organizations, and how the parent company chooses the organizational formation to make growth for itself.