Breaking down the decision to externalise new corporate ventures

Companies are faced with the problem of balancing autonomy and control of new corporate ventures created within the organisation. Utilising both transaction-cost and resource-based theories, we analyse what issues drive managers when making the decision of internalising or spinning off a Corporate V...

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Detalles Bibliográficos
Autores: Castro, Julio de, Palacios Florencio, Beatriz, Galán González, José Luis, Pizarro Moreno, María Isabel
Tipo de recurso: artículo
Fecha de publicación:2018
País:España
Institución:IE
Repositorio:Repositorio IE
OAI Identifier:oai:repositorio.ie.edu:20.500.14417/3623
Acceso en línea:https://doi.org/10.1080/14783363.2018.1530592
https://hdl.handle.net/20.500.14417/3623
Access Level:acceso abierto
Palabra clave:Decision-making
New corporate venture
Spin-off
Internalisation
Externalisation
53 Ciencias Económicas::5311 Organización y dirección de empresas
ODS 9 - Industria, innovación e infraestructura
Descripción
Sumario:Companies are faced with the problem of balancing autonomy and control of new corporate ventures created within the organisation. Utilising both transaction-cost and resource-based theories, we analyse what issues drive managers when making the decision of internalising or spinning off a Corporate Venturing (CV). Our results indicate that the primary drivers of such strategic decisions are near-term profitability, the risks involved and synergies with the firm. Our results indicate that rather than the potential of the venture in itself, the main driver of decisions are the potentials benefits and/or damage that CV could cause to the parent firm.