Structures dedicated to corporate entrepreneurship: The CAC 40 and BNP Paribas Fortis

Details

Supervisors

Gailly, Benoît

Faculty

Louvain School of Management

Degree label

Master [120] en Ingénieur de gestion

Abstract

An increasing number of mature organizations choose for semi-autonomous structures to foster corporate entrepreneurship. The aim of this report was to explore these structures. We have seen that internal corporate ventures allow established corporations to be more entrepreneurial. Furthermore, we assessed that, when strategic importance and operational relatedness of a venture are uncertain, an internal corporate venture is best used. By using internal corporate venturing initiatives, the corporation can exploit the resources of a large organization while preserving the entrepreneurial benefits of a small one. And by breaking the internal routines, the semi-autonomous structure allows for more radical innovations that are outside the organization’s comfort zone. We identified key success factors that were divided in five categories: strategic implications, considered time span, autonomy versus connectedness, factors to be considered when the structure engages in working with external parties, and link with corporate venture capital. This study concentrates on the organizations of the CAC 40. The French stock market index is representative of various sectors to ensure the diversification of the benchmark. We started the study by describing key findings in the CAC 40. Then we looked at the internal corporate venturing initiatives sector by sector. It was assessed that most organizations in the CAC 40 (67,5%) engage in internal corporate venturing activities. As much as 81% of these organizations do so in a structure encouraging co-development with start-ups in order to create synergies. Most of these structures can be called a networked incubator. It was also found that out of the organizations using internal corporate venturing, 44% focused exclusively on digital ventures. Some incubators/accelerators host more than one organization of the CAC 40; most of them are multi-sector incubators/accelerators. Inspecting what innovation initiatives are implemented in all organizations of the CAC 40 gives us a general overview. After having reviewed the innovation initiatives in the organizations of the CAC 40, we analyzed the situation in the subsidiary of one organization in particular that is also part of the CAC 40: BNP Paribas. This analysis consists of interviews with two managers at BNP Paribas Fortis as well as one manager at Co.Station, an incubator BNP Paribas Fortis is present at. The bank uses two internal corporate ventures to foster corporate entrepreneurship: Home for Innovation and Co.Station, an new venture division and an incubator respectively. With Home for Innovation, the bank is hoping to spur an entrepreneurial culture within the bank. With Co.Station, BNP Paribas Fortis can get an outlook from outside the bank by working with start-ups and scale-ups that have a completely different view on things and that apply different methods than their own.