How are corporate ventures evaluated and selected?. (January 2021)

• Record Type: Journal Article
• Authors: Masucci, Monica; Parker, Simon C.; Brusoni, Stefano; Camerani, Roberto
• Is Part Of: Technovation. Volume 99(2021)
• Publication Date: 2021-01
• Subjects: Internal venturing -- Stage-gate system -- Evaluation and selection; Technological innovations -- Periodicals; Industrial management -- Periodicals; Innovations -- Périodiques; Gestion d'entreprise -- Périodiques; Electronic journals; 658.57
• DOI: 10.1016/j.technovation.2020.102126
• Languages: English
• ISSNs: 0166-4972

Abstract

Abstract: This study provides a fine-grained analysis of the decision-making process and criteria underling the evaluation and selection of nascent corporate ventures. By integrating a small sample case-based analysis and the examination of a longitudinal dataset comprising 14 years of archival data, it explores the selection and funding process of early-stage entrepreneurial initiatives supported by the internal corporate venture unit of a major energy company. Its findings extend prior conceptualizations of the internal venture selection process, uncovering differences in the relevance of the criteria used to evaluate ventures at different stages. Highlights: A multi stage decision process is used to evaluate and select early stage ventures. The relevance of venture evaluation criteria varies across development stages. Evaluation criteria serve different purposes according to the stage of the process.