Internal Corporate Venturing in Family Firms: Antecedents and Consequences of Resource Exchange

Access to resources made available by the parent company is the distinguishing characteristics of internal corporate ventures. Yet, how such resources are exchanged between the parent company and the venture is poorly understood. Using a multiple-case research design, we examine the parent company-venture resource exchange in 4 family firms and their newly established ventures. We discuss a) how family firms frame the decision to exchange resource with their ventures; b) the level of risk associated with such resource exchange; and c) the consequences on venture’s operational autonomy. We contribute to the debate on corporate entrepreneurship and clarify why, how and with which consequences, resources are exchanged in internal corporate venturing. We also contribute to social exchange theory by revealing family business as a context in which reciprocal exchanges are particularly valuable.