Raisch, Tushman (2016)

Question 1

How to successfully scale graduated new/exploratory businesses: complex relationships between corporate ventures and their parent organizations

Answer 1

• A graduation process in which the corporate business meets the varying expectation of multiple organizational resources providers, enables scale
• Combining resources of established units and the new business has greater value than costs of cannibalization and internal competition
• First the new units differentiate to develop distinctive new capabilities, then they integrate their capabilities with those of core units to ensure resource flows, then they differentiate again to develop their own strategic profile.

Question 2

Conclusion

Answer 2

First, the locus at which organizations address exploration–exploitation tension shifts from the corporate to the unit level when new corporate businesses transition to scale. While the two classic types of ambidexterity are discrete solutions for managing exploration–exploitation tension (Raisch et al. 2009),they are also interrelated in a dynamic process over time.

Multilevel exchange relationships (not only corporate parent but also peer-units) drive corporate businesses’ transition to scale.