The Effect of Corporate — Start-Up Collaborations on Corporate Entrepreneurship

Abstract

In an attempt to become more flexible and responsive, corporates increasingly collaborate with start-ups. By doing so, corporates hope to make a transition towards a more entrepreneurial organization or to rejuvenate their organizational culture and working practices. We present the results of a multiple case study in which we compare eight corporate—start-up collaborations that achieved different success rates in terms of promoting corporate renewal. Our focus is on the corporate individuals that participate in the collaboration and we combine literature on corporate entrepreneurship with institutional theory to study the conditions under which these individuals are more likely to exhort transformational agency and to contribute to renewal. Our results indicate that the effect of corporate—start-up collaborations on renewal is mediated by two individual-level mechanisms: reflexivity and intrinsic motivation. In addition, we identify several organizational contingencies that affect both the likelihood that corporate individuals adopt a reflexive orientation and are intrinsically motivated as well as the likelihood that their transformational efforts are successful.

Toward an integrated framework of corporate venturing for organizational ambidexterity as a dynamic capability

“…As a result, especially contemporary CV modes that often focus on collaboration with external start-ups in the sense of open innovation, or building internal startups, may play a novel role in the strategic renewal of a firm's competitive advantage (Gutmann 2019;Rigtering and Behrens 2021;Shankar and Shepherd 2019). These different modes also reflect the varying levels and structures in which CV can appear in the organisation, which is sometimes differentiated as dispersed or focused CV, usually involving the possibility that CV is moderated by a specific CV unit or new venture division that may act as a link to the core business, corporate management and ecosystem and has the responsibility to create new business for the firm (Burgelman 1984a;Hill and Birkinshaw 2008;Leten and Van Dyck 2012;Reimsbach and Hauschild 2012;Zahra 1991).…”

“…Consequently, the many different established and contemporary internal and external forms of CV must be considered in examining how CV is linked with OA, as long as their tasks relate to the creation of new business. Additionally, we must also consider the possibility that CV is moderated by a specific unit, which may act as a vehicle to deliver innovation to the parent company (Gutmann 2019;Rigtering and Behrens 2021).…”

Looking for Guidance? Five Principles for Leveraging Tensions in Corporate–Startup Collaboration

“…For instance, less experience offered greater opportunities for organizational actors to build experience within such external collaborations (CM11). Moreover, only a certain difference in perspectives stimulates employees’ reflection, and their direct exposure to startups is critical for it (Rigtering & Behrens, 2021). We also noticed descriptions that preparation and performance based on experience use were secured in the similarities and internal ties.…”

“…Corporates and startups may differ in their decision logics, expectations, beliefs, cultures, and processes (Bannerjee et al, 2016; Jackson & Richter, 2017; Minshall et al, 2010; Urbaniec & Zur, 2021). While this can be challenging, a certain difference between the corporate and startup is important to leverage benefits for renewal (Rigtering & Behrens, 2021). For instance, knowledge bases and approaches related to social and sustainability issues that diverge from their own capabilities allow corporates to learn, making them ready to create societal benefits (Hübel et al, 2022; Mirvis et al, 2016).…”

“…In contrast, startups are known to be flexible, can get by with little bureaucracy, are agile and risk affine (Hora et al, 2018; Weiblen & Chesbrough, 2015). Thus, CSC as a particular type of open innovation (OI) (Remneland Wikhamn, 2020; Weiblen & Chesbrough, 2015) can provide the differences needed to leverage benefits (Rigtering & Behrens, 2021). For example, Hübel et al (2022) found that allying with sustainability startups allows corporates to both learn from and about these startups (e.g., about market niches and how promising sustainability products and collaborating with respective startups can be).…”