Knowledge management challenges in corporate venturing and technological capability building through radical innovations

This paper’s focus is on the knowledge management challenges that come along with technology based corporate venturing (CV). CV is a complex process including internal, joint and external venturing. It can be organized into a (semi)-autonomous business unit. This unit manages CV-projects through a sequence of subsequent stages starting from high risk and low stakes in the idea evaluation to lower risk and higher stakes in pilot plant production at the start-up company. These consecutive steps can be considered as a sequence of option payments over time in a technology. CV activities require a different approach to knowledge management that is predominantly focused on codifying, collecting and distributing knowledge. Knowledge management can enhance CV by focusing on experimenting, monitoring and integrating. As a result, knowledge management requires a contingency approach tailoring knowledge management activities to the specific tasks of the CV.