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Employing New Business Divisions to Exploit Disruptive Innovations: The Interplay between Characteristics of the Corporation and Those of the Venture Management Team

Journal of Product Innovation Management

Published online on

Abstract

Established firms often create new business divisions in response to new ways of competing, such as those based on disruptive innovations. Using a sample of daily newspapers and their Internet divisions, this study examines the corporate characteristics of orientation, attention, and control and venture management team characteristics of vision, experience, and collective efficacy and their interactive effects on the overall performance of the new division. Findings demonstrate that vision and collective efficacy are related to venture outcomes, orientation affects the experience and vision to venture performance relationships, attention enhances the vision and collective efficacy to performance relationships, and decision autonomy influences the experience and collective efficacy to venture performance relationships. Overall, the results of this study imply that specific venture management team characteristics and corporate characteristics may be tailored to improve chances of meeting specific performance targets and achieving overall venture success.