Corporate acceleration process: a systems psychodynamics perspective

Abstract

PurposeThe purpose of this paper is to explore the emotional dynamics of the corporate acceleration process, using the systems psychodynamics perspective.Design/methodology/approachThe study applies inductive multiple case study of embedded 10 cases of corporate acceleration, covering both incumbent and startup perspectives, occurring in the context of a corporate accelerator.FindingsWe find that (1) the process of corporate acceleration involves three phases, each of them is dominated by a different emotional state (hope, anxiety and acceptance), triggering different behavioral responses; (2) as a means to deal with negative emotions, entrepreneurs and corporate acceleration program's team members develop different mechanisms of dealing with contradictories in subsequent acceleration phases (defense and copying mechanisms), which are reflected in their behaviors. Coping mechanisms with goal reformulation (i.e. refocus from the officially declared “open innovation” goals toward mainly symbolic ones) is an effective strategy to manage negative emotions in third phase of the acceleration.Research limitations/implicationsOur sample is limited to two relatively similar accelerators established by telecom companies, and therefore, our theoretical and practical conclusions cannot be generalized.Practical implicationsWe supplement the studies of corporate accelerators that imply how to design them better and improve decision-making rules with recommendation that in order to improve their effectiveness in terms of learning and innovations, their managers need not only to learn how to manage structural and procedural differences but also how to overcome social defenses triggered by corporate–startups cooperation.Originality/valueBy documenting a multidimensional impact of acceleration process, and especially shedding light on psychodynamic aspects behind such liaisons, this paper contributes to richer understanding of corporate–startup relationships, typically examined through a rationalistic lens of strategy literature. The study contributes to interorganizational research and open innovation literature, by showing that corporate acceleration process is marked by phases based on the type of emotions intertwined with the nature and dynamism of its life cycle. It indicates how these emotions are managed depending on their type.

Start-up selection criteria for corporate venturing: what matters for incumbents

“…(n.r. = not ranked) The track record seemed to be a key criterion in the start-up selection process: a track record including prior experience in founding start-ups (Wójcik et al, 2020), investments by other investors (Ben Mahmoud-Jouini et al, 2018;Chemmanur et al, 2014;Ozmel et al, 2017;Park and Steensma, 2013;Park and Bae, 2018), or a previous affiliation with the respective corporation (Henderson, 2009;Wójcik et al, 2020) increased a start-up's chances of being selected for external corporate venturing activities. Whereas one study found that corporates were not interested in the entrepreneur(s) business qualification (Henderson, 2009), other studies supported the view that a higher level of education both in the field of science and engineering but also from other disciplines increased the chances of being selected (Andersson and Xiao, 2016).…”

“…Incumbents seemed to use their external corporate venturing activities as a source of innovation (Andersson and Xiao, 2016;Ben Mahmoud-Jouini et al, 2018;Benson and Ziedonis, 2009;Chemmanur et al, 2014;Enkel and Sagmeister, 2020;Ma, 2020;Park and Steensma, 2013;Wójcik et al, 2020). In the identified studies, incumbents selected start-ups that developed new products, innovative services, or unique solutions with a specific value for the incumbent (Ben Mahmoud-Jouini et al, 2018;Enkel and Sagmeister, 2020;Hamilton, 2001;Henderson, 2009;Kanbach and Stubner, 2016;Lantz et al, 2011;Prashantham and Kumar, 2019;Wójcik et al, 2020).…”

“…Several studies also indicated that external corporate venturing activities were especially interested in start-ups with disruptive business models and technologies (Henderson, 2009;Kanbach and Stubner, 2016;Kreusel et al, 2018;Lantz et al, 2011;Wójcik et al, 2020). Here, the selection was based on technological synergies between the start-up and the incumbent (Chemmanur et al, 2014;Hamilton, 2001;Ma, 2020;Ozmel et al, 2017;Park and Steensma, 2013).…”

Start-up Accelerator: State of the Art and Future Directions

“…The material was a study of 10 cases where the points of view of both a start-up and a corporation were taken into account. This study is expected to contribute to a better understanding of the corporate-start-up relationship and recommend how to better manage corporate accelerators, enhancing their effectiveness, from a perspective that has never been considered before (Wójcik et al, 2020).…”

Startup Accelerators

“…The research was based on the analysis of 10 case studies in terms of emotional dynamics from a systems psychodynamic perspective. The study included the points of view of both a corporation and a startup [Wójcik et al, 2020].…”