Exploring disruptive technology: the structure and control of internal corporate ventures

Purpose – The purpose of this article is to develop a conceptual model addressing how environmental uncertainty resulting from disruptive technology affects an internal corporate venture's organization. Design/methodology/approach – Based upon a review of two complementary theoretical perspectives – resource dependence theory and institutional theory, propositions regarding internal and external linkages and the internal organizational governance mechanisms of organizational structure and strategic control systems of ICVs are developed. Findings – Resource dependence theory and institutional theory are both necessary to explain the organizational issues resulting from the uncertainty surrounding disruptive technology. Research limitations/implications – A limitation is that this is a theoretical paper; empirical research is needed to test the theories presented in this paper. Practical implications – To the extent that managers can be trained to recognize and understand the complexities of disruptive technology, their likelihood of appropriate organizational responses will be enhanced. Originality/value – The paper presents a conceptual model of how to successfully manage an internal corporate venture in a disruptive technology environment.