Innovation preservation and cultivation: where to locate transformational projects

Abstract

Purpose The reality of organizing new growth ventures is that every place to locate them in the organization has pros and cons. Design/Methodology/Approach Using a set of seven archetypes, executives can figure out which location solution fits the initiative and the parent company best. Findings Organizations pursuing ventures have a choice of how much separation/distance to insert between ongoing operations and the new business. Practical/Implications The “right” place to locate a venture also depends on such factors as the situation of the parent organization, the level of innovation maturity the parent organization has and the form and functions of the venture. Originality/Value One of the most critical decisions that executives need to make as they contemplate getting started with setting up an innovation/growth function within their organizations is where, organizationally, it belongs. Seven alternatives are analyzed.