The Impact of Corporate Venturing on a Firm's Competence Modes

JH Burgers, Frans van den Bosch, Henk Volberda

Research output: Chapter/Conference proceedingChapterAcademic


In this conceptual paper we investigate how corporate venturing influences an organization’s competences. The impact of various types of corporate ventures on the portfolio of strategic options of a firm’s competence modes (Sanchez, 2004a; Sanchez and Heene, 2002) will be assessed by distinguishing two fundamentally different dimensions of corporate venturing, technology and product (Block & MacMillan, 1993). We argue that the level of product and factor market dynamism mediates the effect of corporate venturing on a firm’s competence modes. Corporate ventures that significantly increase the level of product or factor market dynamics will lead to an increased flexibility in all five competence modes. These ventures will have a direct effect on the lower-order competence modes and an indirect, lagged effect on higher-order competence modes through feedback loops. The developed framework and the propositions contribute to managing the ability of a firm to change its coordination-, resource and operating flexibility in order to sustain value creation.
Original languageEnglish
Title of host publicationCompetence-building and leveraging in inter-organizational relations
EditorsR. Martens, A. Heene, R. Sanchez
Place of PublicationAmsterdam
Number of pages206
Publication statusPublished - 2008

Publication series

SeriesAdvances in Appplied Business Strategy


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