Thesis (MComm (Business Management))--University of Stellenbosch, 2009. / This study recognises that innovation and renewal is instrumental in gaining competitive advantage. However, large firms often face a renewal dilemma. Despite the fact that many firms recognise the need for innovation and renewal, they find it challenging to implement innovation. Thus, the need for renewal is complicated by finding a suitable business development tool to bring about the renewal needed. The problem is further aggravated by a fundamental managerial conflict of exploration and exploitation. This conflict causes a reluctance to engage in exploration activities (searching for new resources, knowledge, and competence), due to the operational focus of exploiting current resources, knowledge, and competence. To overcome the renewal dilemma, this study investigated the relationship and linkages between Internal Corporate Venturing (ICV) and corporate renewal to determine how Internal Corporate Venturing (ICV) can be used as a tool to initiate corporate renewal and overcome the renewal dilemma. The study made use of a qualitative, mixed-method methodology and investigated the research problem in two phases. The first phase of this study used Grounded Theory to propose a theoretical framework that illustrated how ICV provides a firm with a strategic process that effectively balances exploration and exploitation activities, providing the linking mechanisms needed between a firm’s corporate context and its external environment, enabling the firm to initiate corporate renewal. In the second stage of this study, the theory was assessed, by comparing the proposed theoretical framework to a case study involving an internal venturing programme at an established financial services firm in Southern Africa. Based on a comparison between the proposed theoretical framework and the case study, this thesis concludes that ICV could theoretically be used to address the renewal dilemma; however, it was not possible to confirm this proposition, due to the stage in which the corporate venturing programme the case examined found itself,. The case study did however suggest that ICV could enhance a firm’s ability to instigate corporate renewal, through its ability to create idiosyncratic endowments from a firm’s endowment base.

Syfte: Syftet med studien är att berika litteraturen kopplad till hur etablerade företag kan överkomma de svårigheter som är förknippade med organisationsstrukturerna under implementeringsfasen av Internal Corporate Venturing. För att uppnå syftet undersöker vi följande forskningsfrågor: RQ1: Hur och varför skapar organisationsstrukturer svårigheter under implementeringsfasen för de etablerade företagen när de bedriver Internal Corporate Venturing RQ2: Hur kan etablerade företag övervinna svårigheter med organisationsstrukturer när de deltar i implementeringsfasen för Internal Corporate Venturing? Metod: Studien är en kvalitativ enskild fallstudie, där ett etablerat företag inom fordonsindustrin i Göteborg, Sverige har undersökts. Sammanfattningsvis har 31 intervjuer genomförts under tre vågor och analyserats via en tematisk analysmetod. Resultat: Resultatet av denna studie är ett ramverk och en färdplan som illustrerar svårigheter, konsekvenser och åtgärder avseende organisationsstrukturer under implementeringsfasen av Internal Corporate Venturing. De mest framträdande svårigheterna är bristen på lack of internal support systems och organizational behavior obstacles. De mest kritiska konsekvenserna är venture strategy obstacles och innovation failure. De viktigaste åtgärderna är att create a supportive culture och develop a learning organization. Implikationer: Denna studie bidrar med insikter i den bristande litteraturen om organisationsstruktursvårigheter under implementeringsfasen av Internal Corporate Venturing. För chefer bidrar den här studien med ett ramverk för hur företaget kan upptäcka och överkomma svårigheterna med hjälp av specifika åtgärder vid implementering av Internal Corporate Venturing. Slutligen presenterar studien en konceptuell färdplan för hur etablerade företag kan utveckla sin Internal Corporate Venturing process, vilket kan nyttjas av företagets chefer. Begränsning och framtida forskning: Denna studie är begränsad till att undersöka implementeringsfasen av Internal Corporate Venturing på ett enskilt företag, i en specifik bransch, vilket indikerar att framtida forskning kan undersöka andra branscher.  Nyckelord: Corporate Venturing, Internal Corporate Venturing, New Venture Creation, Organizational structures / Purpose: The purpose of the study is to enrich the literature connected to how incumbent firms can mitigate the difficulties connected to the organizational structures during the implementation phase of internal corporate venturing. To fulfill the purpose, we examinethe following researchquestions: RQ1: How and why doorganizational structures create difficulties during the implementation phase for incumbent firms when engaging in internal corporate venturing? RQ2: How can incumbent firms overcome difficulties with organizational structureswhen engaging inthe implementation phase of internal corporate venturing? Method: The study is a qualitativesingle case study, where one incumbent firm within the automotive industry situated in Gothenburg, Sweden has beeninvestigated. In sum, 31interviews havebeen conductedduring three waves and were analyzed via a thematic analysis approach. Findings: The result of this study is a framework and aroadmap illustrating the difficulties, consequences and mitigating actionsregardingorganizational structures during the implementation phase of internal corporate venturing. The most prominent difficulties are lack of internal support systemsand organizational behavior obstacles.The most critical consequences are venture strategy obstacles and innovation failure. The most important actions would be to create a supportive culture and develop a learning organization. Implications: This study contributes with insightsto the scarce literature on organizational structure difficultiesin the implementation phase of internal corporate venturing. For managers this study contributes with a frameworkon how to detect andmitigate the difficulties with specific actions that emergewhen implementing internal corporate venturing. Lastly, this study assist managers with a conceptual roadmap for how incumbent firms could develop theirinternal corporate venturingprocess, the roadmapcould be improved and refined over time. Limitation and future research: This study is limited to investigate theimplementation phase of internal corporate venturing on a single company, in a single industry, indicating that future research could investigate other industry settings. Keywords: Corporate Venturing; Internal Corporate Venturing; New Venture Creation;Organizational structures