Exploring the Practice of Evaluation in Corporate Venturing

Abstract

Venturing activities have become a cornerstone of corporates’ innovation strategies but remain subject to high failure rates. Failure reasons comprise especially poor evaluation qualities, resulting in suboptimal resource allocations. In this study, we investigate the practice of evaluation in corporate venturing by analyzing primary data from 21 in-depth interviews with managers of internal corporate venturing (ICV) programs. We find that the evaluation elements (1) evaluation dates, (2) evaluation methodologies, and (3) evaluation bodies are not isolated — as often suggested by prior research — but interdependent by determining each other. By developing a better understanding of the specific relationships among the main evaluation elements in ICV programs, we contribute to the corporate venturing literature and provide guidance for practitioners.