Abstract
Corporations initiate new business ventures that can range from highly related to highly unrelated to their existing business operations. Degree of new internal corporate venture relatedness is assumed to drive the degree of planning autonomy parent corporations grant their ventures. The current research examines the influence of a parent corporation’s financial slack on the relationship between venture relatedness and planning autonomy. Results based on a sample of 145 internal corporate ventures indicate that slack strongly moderates the relationship between relatedness and autonomy, but the direction of the moderating effect depends on the type of relatedness being considered – i.e., either market familiarity or product similarity.
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