Everyday Practices of Corporate Venturing

Abstract

While research on corporate venturing is growing, most existing studies are conceptual or designed to uncover broader empirical patterns and they take a managerial approach. Recently scholars have called for taking into account the role of the ownership context in corporate venturing as well as the practices that constitute the micro processes of corporate venturing. This paper heeds this call by studying the corporate venturing activities of next generation members in family owned businesses (FOBs), and drawing on a practice theory lens inspired by Michel de Certeau to address the following research question: How do next generation family members go about in everyday life to realise their new venture ideas? Empirically the study is based on in-depth case research into three Mexican FOBs where next generation family members are engaged in launching new ventures. The study reveals five everyday practices of corporate venturing associated with motivation and relating logics of owning family members and show how these practices emanate out of existing dominant strategic orders that are present in the owning family context. The five practices represent appropriation efforts of family members to make-do corporate venturing part of their daily life. The findings suggest that although the dominant strategic orders limit the corporate venturing efforts of family members temporarily, individuals may find ways around them to overcome power issues. The study extends the understanding of everyday practices of corporate venturing in the FOB context as well as the meaning of Certeau’s practice theory.