Innovation and business growth through corporate venturing in Latin America

Abstract

PurposeThe purpose of this research is aimed at discussing the external and internal strategic fit in corporate ventures in Latin America.Design/methodology/approachThis study is based on empirical investigation through semi‐structured interviews administered to the managers of multinational companies operating in Mexico. The success of the corporate ventures in Mexico has been evaluated from the perspectives of economic and relational attributes. The results of the study showed that the degree of fit between a corporate parent and venture affects the success of the venture. The success is associated with high levels of commitment, competitive skills and dynamics in the functional management of the venture. In this study the variables of economic and relational dimensions of external and internal fit have shown greater association with venture success. It has also been found that ventures opt for greater autonomy and less economic dependency with their parent ventures for leading success and these findings make an intuitive sense.FindingsThe study may have limitations on generalizing some of the findings because of the survey type study.Research limitations/implicationsCorporate venturing as a strategy for international business development has become significant in view of the process of globalization resulting in free trade and business development opportunities for multinational companies. This study provides an understanding of the venture managers to succeed in Latin American business environments in view of the organizational culture and employee behaviour.Practical implicationsThis paper is based on the economic and behavioural indicators affecting strategic fit in the corporate venture.Originality/valueThis paper would contribute to important areas in Latin American business where such studies are scarce.