Managing the new venture division: Research findings and implications for strategic management

Abstract

Abstract The New Venture Division (NVD), an important organizational innovation to facilitate corporate entrepreneurship, so far has been used with mixed success. Systematic differences in terms of administrative processes, strategy‐making and participants' orientation create problems in the interfaces between the NVD and the rest of the corporation. Top management should realize that the NVD is a design for ambiguity. It should take steps to provide an adequate structural context for new venture activities, and to create a process for determining the strategic context of such activities in the corporation.

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