The DC view

The DC view

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In times of changing business environments, firms must constantly renew their competitive advantage by establishing dynamic capabilities. While often attempting to employ this in corporate venturing activities, they face the challenge of simultaneously exploring new and exploiting existing business opportunities. Examining possible approaches to ma...

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... appropriate lens through which to examine the role of CV for OA, as corporate venturing can appear as a functional dimension that might be involved in sensing, seizing and transforming processes for exploring and/ or exploiting as a higher-or lower-order (dynamic) capability, embedded in individual/managerial and unit/organizational routines (see Fig. 3). This confirms the proposition by Augier and Teece (2009), who stated that the DC framework might be a useful foundation for understanding the process of opportunity sensing and seizing, as well as strategic renewal, all of which CV may enable to tackle the OA ...

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... To mitigate this and ensure the validity, replicability and reliability of our study, we aimed to include a wide range of peer-reviewed research from all journals indexed in Scopus and Web of Science. Furthermore, to improve triangulation and reduce source and geographic bias, using research from various academic databases is considered a best practice (Alaka et al., 2018;Schlosser et al., 2007;Weiss & Kanbach, 2022). Therefore, we did not apply additional filters like journal quality, geography, or minimal citations for SLR. ...
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... The balancing of both strategies reveals an ambidextrous approach, viewing strategic activities as complementary and dynamic elements, rather than opposing or singular forces, for long-term success (Weiss and Kanbach, 2022). This ambidexterity is also consistent with resilience research examining the dual and simultaneous impact of preparedness and agility on entrepreneurial decision-making, thereby influencing resilience in SMEs (Delladio et al., 2023). ...
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... The resulting framework underscores the importance of adapting to the VUCA environment through a strategic blend of proactive engagement, coping, and transformative actions (Weiss and Kanbach 2022). The DCs of engaging and anticipating enable corporates to detect emerging challenges and opportunities, as well as to foresee potential future scenarios (e.g., Hendry et al. 2019;Verreynne, Ford, and Steen 2023). ...
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... While collaborations among incumbent firms (e.g., joint ventures and alliances) have been the subject of extensive study (Urbano et al., 2022), collaborations between incumbent firms and other actors, such as start-ups, have only gained interest in recent years (De Silva & Wright, 2019;Rigtering & Behrens, 2021;Del Sarto et al., 2022;Weiss & Kanbach, 2022;Bettenmann, 2023). ...
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Corporate entrepreneurship is critical for incumbent firms to ensure continuous organizational renewal. Asymmetric buyer–supplier relationships with start‐ups, known as “venture clienting,” serve as an entrepreneurial process wherein incumbent firms integrate innovative technologies acquired from start‐ups into their processes and products to drive organizational renewal. Prior research, however, lacks insights into how incumbent firms manage these asymmetric buyer–supplier relationships and overcome the challenges that differences in culture, governance structure, and negotiating power pose. We address this gap by drawing on data from 52 semi‐structured interviews with key decision makers in a multi‐case study of six incumbent firms engaging in venture clienting. Based on the results of our cross‐case analysis, we inductively distill three maturity stages of venture clienting within incumbent firms (i.e., initiation, complexification, and pruning) and the triggers for each stage. We also shed light on the dynamic capabilities that firms develop in each maturity stage and outline the enablers that foster their development. Furthermore, we reveal how these dynamic capabilities affect corporate entrepreneurship in the incumbent firm, in terms of opportunity recognition and technology integration success.
... Many scholars consider ambidexterity to be a dynamic capability, or its components to be rooted in dynamic capabilities (Popadiuk et al., 2018;. Thereby, scholars draw connections between sensing and exploring as well as seizing and exploiting (Eisenhardt & Martin, 2000;Weiss & Kanbach, 2022). In the context of innovation units, view dynamic capabilities as enablers for ambidexterity and add the additionally observed dynamic capabilities of scoping ("the organizational skills and competencies used to define a strategic focus") and configuring ("the ability to follow up on the strategic focus with ongoing assessment and adjustment of the project and opportunity portfolio") (p. ...
... They propose that these organizational entities could address strategic renewal of the parent company by combining exploration and exploitation and termed this an interlinked-ambidextrous configuration. In distinction, "this higher-order dynamic capability of balancing exploration and exploitation is here not predominantly represented in individual behaviors and routines but rather embedded in organizational structures and processes within and between units and functions, resulting in ambidexterity to be achieved at this level rather than in the corporate management or system alone" (Weiss & Kanbach, 2022, p. 1151. A large body of research is directly or indirectly referring to this approach by, for instance, highlighting the importance of processual linking mechanisms between exploration and exploitation (Hill & Birkinshaw, 2014). ...
... Portfolio balance is predominantly considered an enabler of portfolio success (Eisenhardt et al., 2010;Kock & Gemünden, 2016). The leveraging of existing capabilities for exploration via the integration of exploration and exploitation activities and actors is supported by a growing body of literature (Tarba et al., 2020;Weiss & Kanbach, 2022). That way, organizations depart from the classical structural separation approach and reinforce the perspective that the holy grail of ambidexterity lies in integration rather than in the mere balancing of exploration and exploitation . ...
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... When using structural ambidexterity, exploration and exploitation are hence structurally separated from each other due to their differing requirements and pursued in separate organizational units. Examples of this are companies with dedicated R&D units, innovation centres, corporate venturing units or spin-offs focussing primarily on exploration, while the remaining organizational units focus on exploitation, the current core business, and the utilization of existing competencies (Weiss & Kanbach, 2022). The rationale behind this idea is the need for fundamentally different processes, systems, cultures, and mindsets to promote the two orientations (Benner & Tushman, 2003;Smith & Tushman, 2005). ...
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This paper reports the results from a research-in-progress project investigating the effects of boundary spanning activities between explorative and exploitative units in structurally ambidextrous organizations on their product innovation performance, both in terms of more incremental (i.e., new-to-firm) and more radical (i.e., new-to-market) innovation. Drawing on Social Capital Theory (SCT) and applying a Knowledge-based View (KBV), a dataset from the European Manufacturing Survey (EMS) collected in Switzerland consisting of data from 476 organizations was analyzed. The preliminary results of the data show that boundary spanning activities between explorative and exploitative units are indeed related to higher product innovation performance and that innovation speed represents an important mediator in this relationship.
... This study aims to explore how corporates renew their competitive advantages through external partnerships via equity and equity-free CV. Building on existing research (Hill & Birkinshaw, 2014;Schmitt et al., 2018;Weiss & Kanbach, 2021), the study uses a Flexible Pattern Matching Approach (FPMA) . This approach combines deduction and induction by comparing theoretical patterns with interview data. ...
... Hereby, ambidextrous organizations, which balance exploration and exploitation, achieve higher innovation and performance (Gutmann, 2019;Hill & Birkinshaw, 2006;O'Reilly & Tushman, 2013). To foster such ambidexterity, companies increasingly adopt OI, collaborating across boundaries to integrate external ideas and technologies with internal processes (Chesbrough, 2006;Weiss & Kanbach, 2021;Schmitt et al., 2018). ...
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This study investigates how innovation through external partnerships via Corporate Venture Capital and Corporate Venture Clienting contribute to strategic renewal. Corporate Venture Capital identifies and captures future growth opportunities through equity investments, while Corporate Venture Clienting integrates start-up innovations into core business operations through equity-free purchasing. Analyzing 83 semi-structured interviews with representatives from both external Corporate Venturing modes, the findings highlight that combining Corporate Venture Capital to develop new competitive advantages and Corporate Venture Clienting to enhance current competitiveness can drive comprehensive strategic renewal in different, but complementary, ways. This research extends theory on strategic corporate venturing and open innovation through external partnerships and offers practical guidance for corporate decision-makers on leveraging innovations for strategic renewal.