Corporate Entrepreneurship: Accelerating New Business Building Inside Firms

Published 27 Aug 2010
Reference 5735
Topic Strategy
Region Global
Summary

Corporate entrepreneurs accelerate new business growth by going outside the parent company. Through alliances and acquisitions, new businesses access resources not available within the parent. Spinning off a new business can speed up its development. Yet, all three acceleration vehicles increase the complexity of new business building. This note details traps to avoid when using these vehicles.

Teaching objectives

- To describe three vehicles for acceleration of new business building inside firms - alliances, acquisitions and spin-offs. - To explain how managers can manage the increased complexity inherent to these acceleration vehicles.

Keywords
  • Corporate entrepreneurship
  • New business building
  • Alliances
  • Acquisitions
  • Spin-offs
  • Complexity
  • AR0910
  • AR2010
  • RD0710