Editor’s note

Citation

(2012), "Editor’s note", Journal of Business Strategy, Vol. 33 No. 3. https://doi.org/10.1108/jbs.2012.28833caa.001

Editor’s note

Article Type: Editor’s note From: Journal of Business Strategy, Volume 33, Issue 3

Most large corporations want to grow larger. But, as Deryck J van Rensburg, president of Venturing & Emerging Brands for The Coca-Cola Company and author of the lead article in this issue of JBS notes, there exist “liabilities of largeness.” While technology and service industries have for years attempted to combine the agility and responsiveness associated with smallness with the advantages of size, other industries have just begun their forays into this area. Consumer companies, especially those built on branding reputation, have concentrated mainly on expanding their brands from within or buying other established companies. Entrepreneurship and corporate venturing have typically not been included in the strategic planning of such companies. But as the search for hot new brands escalates in the face of intense competition, large consumer product companies like Coca-Cola are considering the attraction of entrepreneurship. They are forming organizational groups charged with finding new brands, often outside the company, that have the potential to jolt the market if they get the support a large company can offer.

In a related article, “Smoothing the corporate venturing path,” the authors compare the performance of entrepreneurial groups within a parent company and in a subsidiary. While one might expect that the absence of rules and policies might encourage innovation, quite the opposite occurs. The Indian subsidiary has a board supervising new ventures with senior managers representing technical, commercial, marketing, and financial functions. The structure has “clearly identified roles, responsibilities and decision-making mechanisms” that ensure effective functioning. In contrast, the new venture units at headquarters were left floundering without a supportive structure or expectations, leading to disappointing results.

It seems that creativity in the corporate world, especially when it comes to new ventures, flourishes within a clearly identified framework with expectations and procedures to follow.

The other papers in this issue of JBS are equally thought-provoking. In “Pulling off the comeback,” the authors emphasize the need to balance contractionary and expansionary initiatives, not an easy task when crisis looms. The paper on leapfrogging and catching up compares two companies, one in China and one in Japan, that are outperforming the competition not primarily with unique offerings but because of their business models, which allow them to out-maneuver their rivals. Rounding off this issue, the paper on extended enterprises, like the two papers on corporate ventures, suggests that embracing innovation requires new ways of managing and dealing with other firms. The point is to glean ideas from all corners, whether within the corporation or outside, and translate them into new products and services that succeed.

We welcome comments and suggestions from readers and hope you find this issue valuable.