Examining the decision to spin off new corporate ventures

Isabel Pizarro (), Juliio DeCastro () and Jose Luis Gal‡n ()
Additional contact information
Isabel Pizarro: Department of Business Administration, Universidad Pablo de Olavide
Juliio DeCastro: Department of Strategic Management & Entrepreneurship Instituto de Empresa, Madrid
Jose Luis Gal‡n: Department of Business Administration, Universidad de Sevilla

No 11.06, Working Papers from Universidad Pablo de Olavide, Department of Business Administration

Abstract: When developing a new venture, a company is faced with the problem of balancing between its autonomy and its control. Utilizing both transaction-cost and resource-based theories, we analyze how entrepreneurial managers’ perceptions of the strategic relationship between firm and corporate venture (CV) determine the choice of internalizing or externalizing the CV. The results indicate that managers would encourage externalization of a CV if its near-term profitability forecast were low; if the risks involved were high; or if the technological synergies with the firm were low. For high market relatedness, managers would encourage internalization of the CV when the importance of the new competences is high

Keywords: Corporate ventures; internalization; spin off; strategic importance; operational relatedness (search for similar items in EconPapers)
Pages: 35 pages
Date: 2011-11
New Economics Papers: this item is included in nep-bec, nep-cse and nep-ent
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.upo.es/serv/bib/wpbsad/bsad1106.pdf First version, 2011 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pab:wpbsad:11.06

Access Statistics for this paper

More papers in Working Papers from Universidad Pablo de Olavide, Department of Business Administration Carretera de Utrera km.1, 41013 Sevilla. Contact information at EDIRC.
Bibliographic data for series maintained by Publicación Digital - UPO ().