Intra‐firm work experiences and corporate venturing by employees: The roles of job specialization and functionally diverse groups

Research SummaryTaking a strategic human capital perspective on corporate venturing by employees, we consider the potential influence of their job and group experiences within the firm. Because building new ventures requires diverse functional knowledge, greater job specialization could create a barrier to undertaking corporate venturing. However, working in more functionally diverse groups within the firm can facilitate venturing—especially for more specialized employees—by enabling them to develop the skills needed to work with others who have such diverse knowledge. We test our hypotheses using a longitudinal dataset from over 16,000 employees in a large corporation. Our findings advance understanding of the micro‐foundations of internal corporate venturing, how bureaucracies shape corporate entrepreneurship, and how employees can build knowledge and skills with strategic value for the firm.Managerial SummaryWe examine how firms can prepare their employees to undertake corporate venture building activities by shaping their work experiences inside the firm. In a study of employees' work histories within a large corporation, we find that employees who had worked in more functionally diverse groups were more likely to undertake internal corporate venturing. Such experience was particularly important for those who had worked in more specialized jobs, since it could help them collaborate and connect with others with diverse functional knowledge. Our findings suggest that firms hoping to promote strategic growth and increase their competitiveness through corporate venture building consider providing employees with work experiences that help them develop cross‐functional knowledge and skills.