Building external corporate venturing capability: Initial condi- tions, learning processes and knowledge management

How firms build new capabilities to adapt to changing environments is in the core of strategic management. However, only recently research has addressed this question. In this paper I develop a model that lays out how firms develop an capability to create and develop ventures through corporate venture capital, alliances, and acquisitions. The model is based on seven in-depth case studies of large corporations operating in the information and communication technology sector in Europe and the USA. In the core of this model are the learning processes that enable the firm to build up an external corporate venturing capability, both within and outside venturing relationships. I discuss the role of initial conditions and knowledge management practice on the direction and effectiveness of the learning processes leading to an external corporate venturing capability.