Internal Corporate Venture(ICV) is becoming a core competence that Korean companies must organize in order to seize new business opportunities and encourage Entrepreneurship in the firm. One of the key success factors for ICV depends upon the integrative strategy that they pursue. However, despite the importance of this integrative strategy, few studies have been done on this issue.
This paper proposes integrated requirements that should be considered in designing a successful ICV strategy, and suggests the enhancement factors of ICV for a Korean company with existing ICV. In order to verify the objectivity of this proposal, literature review and case studies on 5 US companies(3M, Xerox, Stanford Research Institute, Lucent, Exxon) have been done.
Through literature review and case studies, this study found 4 factors to consider in building a successful ICV strategy; 1) congruence among the management policies, 2) selecting criteria for new venture businesses, 3) the designing principles for operating rules, 4) management plans for after the succeed in new venture.
This paper will be a useful reference for Korean companies who are in the initial stage of ICV. Also, companies with existing ICV can refer to this paper to validate their own. In building a ICV strategy, a company must consider the 4 factors proposed in this paper.
