Exploring disruptive technology: the structure and control of internal corporate ventures

Abstract

PurposeThe purpose of this article is to develop a conceptual model addressing how environmental uncertainty resulting from disruptive technology affects an internal corporate venture's organization.Design/methodology/approachBased upon a review of two complementary theoretical perspectives – resource dependence theory and institutional theory, propositions regarding internal and external linkages and the internal organizational governance mechanisms of organizational structure and strategic control systems of ICVs are developed.FindingsResource dependence theory and institutional theory are both necessary to explain the organizational issues resulting from the uncertainty surrounding disruptive technology. Research limitations/implications – A limitation is that this is a theoretical paper; empirical research is needed to test the theories presented in this paper.Practical implicationsTo the extent that managers can be trained to recognize and understand the complexities of disruptive technology, their likelihood of appropriate organizational responses will be enhanced.Originality/valueThe paper presents a conceptual model of how to successfully manage an internal corporate venture in a disruptive technology environment.