Is Hypertext the Right Organization Structure for Firms Using CVC?

Abstract

Continuous innovation is a source of competitive advantage but is a challenging objective to achieve, especially in a dynamic environment where technology change is very rapid. Companies use different approach to stay on top of the innovation curve, and one such approach is corporate venture capital or CVC. The value of CVC lies in its ability to provide the firm with new knowledge, and if the firm can absorb the new knowledge then it can have a competitive advantage. I propose that the absorptive capacity of a firm depends on its organization structure, and the right organization structure which would amplify the knowledge creating effects of CVC is the “hypertext” organization.