| Technological uncertainty in many industries nowadays may require that firms pursue more exploration (developing new knowledge) and less exploitation (improving existing knowledge) (Levinthal & March, 1993; March, 1991). Indeed, firms may even have to pursue potentially disruptive technology (Bower & Christensen, 1995). These technologies may cannibalize their existing product line, appeal to a different customer base than existing products, and be based upon radically different technologies.; Companies often form internal corporate ventures (ICVs) when it is necessary to pursue new technologies and markets outside of their traditional businesses, such as with disruptive technology (Burgelman, 1983b; Burgelman & Sayles, 1986). The strategic management issues for these ICVs largely determine their ability to foster an innovative culture. The current paper considers one of the most remarkable examples of emerging potentially disruptive technology today—Internet Banking. Using a combination qualitative and quantitative analyses, this dissertation will examine strategic management issues for traditional banks' online banking ventures. Specifically, the dissertation addresses how perception of the technology and environmental context impact organizational structure, including linkages, organizational bureaucratization, and strategic control systems. |
