Strategic Alliances, Mergers and Acquisitions

Strategic Alliances, Mergers and Acquisitions

The Influence of Culture on Successful Cooperation

Edited by Jan Ulijn, Geert Duysters and Elise Meijer

This unique book focuses on the link between different types of culture (national, corporate, professional) and the success of strategic alliances, mergers and acquisitions.

Chapter 3: Creating a Supportive Culture for Corporate Entrepreneurship: Balancing Creativity and Discipline for the Development of Radical Innovation by Interfirm Cooperation

Bob Walrave, Victor A. Gilsing and Michiel F. de Jager

Subjects: business and management, international business, strategic management

Extract

Bob Walrave, Victor A. Gilsing and Michiel F. de Jager The creation and successful commercialization of radical innovation is becoming a topic that dominates the strategic agenda of many technologydriven firms on an increasing basis. One of the key organizational challenges is that radical innovation requires the development of a specific organizational capability, which deviates from existing capabilities in established fields of expertise. Typically, these established domains come with a corporate culture that severely inhibits the development of radical innovation as it does not allow for the risk, ambiguity and uncertainty arising from the creation and development of radically new products and/ or processes (Christensen and Overdorf, 2000). Nevertheless, the capability to identify new ways of doing business and to develop new (disruptive) technologies and products becomes increasingly more important for firms in order to innovate faster than competitors (Teng, 2007). Such a capability is also referred to as corporate entrepreneurship (CE) and can be defined as ‘the sum of a company’s innovation, renewal and venturing efforts’ (Zahra, 1995). CE allows for the deviation from the corporate culture of the parent company and thus circumvention of the lethargy and bureaucracy that comes with company size and/or age, which inhibits the development of radical innovation (Christensen and Overdorf, 2000). Meanwhile, the literature has described what types of measures and activities are required to implement CE (Christensen and Overdorf, 2000; Bergek and Norrman, 2008). Here, one of the key ideas is that CE is best developed when operating at some degree of...

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