An empirical evaluation of the internal corporate venturing process

Raghu B. Garud, Andrew H. van de ven

Research output: Contribution to journalArticle

136 Citations (Scopus)

Abstract

This paper develops a model of the internal corporate venturing process. The model explores conditions under which entrepreneurs are likely to continue with a course of action despite experiencing negative outcomes. Persisting with a course of action despite associated negative outcomes runs counter to trial‐and‐error learning behavior. We suggest that entrepreneurs are likely to continue with a course of action despite experiencing negative outcomes when the level of ambiguity is high and slack resources are available. In contrast, trial‐and‐error learning is likely to occur when either the level of ambiguity is low or when slack resources are not available. We examine these and other aspects of the venturing process with longitudinal data on the development of one venture. The data were collected over a 12‐year period during the commercial development of cochlear implants within a large diversified corporation. The results support our core hypotheses on trial‐and‐error learning and action persistence while extending our understanding of associated processes.

Original languageEnglish (US)
Pages (from-to)93-109
Number of pages17
JournalStrategic Management Journal
Volume13
Issue number1 S
DOIs
StatePublished - Jan 1 1992

Fingerprint

Empirical evaluation
Corporate venturing
Resources
Entrepreneurs
Implant
Learning behavior
Persistence
Longitudinal data
Venture

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management

Cite this

@article{dbe1ea39ee084f31ba46b16bc516ad5c,
title = "An empirical evaluation of the internal corporate venturing process",
abstract = "This paper develops a model of the internal corporate venturing process. The model explores conditions under which entrepreneurs are likely to continue with a course of action despite experiencing negative outcomes. Persisting with a course of action despite associated negative outcomes runs counter to trial‐and‐error learning behavior. We suggest that entrepreneurs are likely to continue with a course of action despite experiencing negative outcomes when the level of ambiguity is high and slack resources are available. In contrast, trial‐and‐error learning is likely to occur when either the level of ambiguity is low or when slack resources are not available. We examine these and other aspects of the venturing process with longitudinal data on the development of one venture. The data were collected over a 12‐year period during the commercial development of cochlear implants within a large diversified corporation. The results support our core hypotheses on trial‐and‐error learning and action persistence while extending our understanding of associated processes.",
author = "Garud, {Raghu B.} and {van de ven}, {Andrew H.}",
year = "1992",
month = "1",
day = "1",
doi = "10.1002/smj.4250131008",
language = "English (US)",
volume = "13",
pages = "93--109",
journal = "Strategic Management Journal",
issn = "0143-2095",
publisher = "John Wiley and Sons Ltd",
number = "1 S",

}

An empirical evaluation of the internal corporate venturing process. / Garud, Raghu B.; van de ven, Andrew H.

In: Strategic Management Journal, Vol. 13, No. 1 S, 01.01.1992, p. 93-109.

Research output: Contribution to journalArticle

TY - JOUR

T1 - An empirical evaluation of the internal corporate venturing process

AU - Garud, Raghu B.

AU - van de ven, Andrew H.

PY - 1992/1/1

Y1 - 1992/1/1

N2 - This paper develops a model of the internal corporate venturing process. The model explores conditions under which entrepreneurs are likely to continue with a course of action despite experiencing negative outcomes. Persisting with a course of action despite associated negative outcomes runs counter to trial‐and‐error learning behavior. We suggest that entrepreneurs are likely to continue with a course of action despite experiencing negative outcomes when the level of ambiguity is high and slack resources are available. In contrast, trial‐and‐error learning is likely to occur when either the level of ambiguity is low or when slack resources are not available. We examine these and other aspects of the venturing process with longitudinal data on the development of one venture. The data were collected over a 12‐year period during the commercial development of cochlear implants within a large diversified corporation. The results support our core hypotheses on trial‐and‐error learning and action persistence while extending our understanding of associated processes.

AB - This paper develops a model of the internal corporate venturing process. The model explores conditions under which entrepreneurs are likely to continue with a course of action despite experiencing negative outcomes. Persisting with a course of action despite associated negative outcomes runs counter to trial‐and‐error learning behavior. We suggest that entrepreneurs are likely to continue with a course of action despite experiencing negative outcomes when the level of ambiguity is high and slack resources are available. In contrast, trial‐and‐error learning is likely to occur when either the level of ambiguity is low or when slack resources are not available. We examine these and other aspects of the venturing process with longitudinal data on the development of one venture. The data were collected over a 12‐year period during the commercial development of cochlear implants within a large diversified corporation. The results support our core hypotheses on trial‐and‐error learning and action persistence while extending our understanding of associated processes.

UR - http://www.scopus.com/inward/record.url?scp=84900447373&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84900447373&partnerID=8YFLogxK

U2 - 10.1002/smj.4250131008

DO - 10.1002/smj.4250131008

M3 - Article

AN - SCOPUS:84900447373

VL - 13

SP - 93

EP - 109

JO - Strategic Management Journal

JF - Strategic Management Journal

SN - 0143-2095

IS - 1 S

ER -