The Role Of Human Capital In The Internal Venturing Process
Intrapreneurs and corporate sponsors are two key agents typically involved in the development of nascent internal corporate ventures. This paper investigates how the human capital of these agents influences progress and survival of the internal corporate ventures (ICVs) they initiate and support at the early and late stages of their nascent development process.
Using event history analysis and drawing on a large longitudinal sample of 1,527 early-stage (i.e. pre-commercialization) ICVs projects reviewed by the internal corporate venture unit of a major energy company between 1996 and 2009, we provide evidence on the relationship between intrapreneurs’ and sponsors’ prior success experience in venture development and the likelihood that the ICVs they pursue are approved for further development or discontinued at the early and late stages.
We also examine whether workload constraints inhibit the ability of intrapreneurs and sponsors to leverage their prior success experience to the benefit of new projects. By providing a more nuanced understanding of the role played by human capital in the internal venturing process, our findings enrich knowledge about the successful development of nascent internal corporate ventures.