Strategic context for bank units: Comparing resource flows for Internet ventures and traditional branches

Theories about strategic context [Gupta, A.K., & Govindarajan, V. (1991). Knowledge flows and the structure of control within multinational corporations. Academy of Management Review, 16(4), 768–792] provide an ideal venue for explaining internal corporate venturing (ICVs) [Burgelman, R. (1983). A process model of internal corporate venturing in a major diversified firm. Administrative Science Quarterly, 28, 223–244. Burgelman, R., & Sayles, L. (1986). Inside corporate innovation: Strategy, structure, and managerial skills. New York: Free Press] of established corporations, by measuring resource flows between the parent and the ICV, as compared to traditional units. The four strategic roles of units include: Contributor unit, Independent unit, Implementer unit, and Integrated unit. Specifically, this paper examines Internet Banking ventures compared with traditional branches of traditional banks, and their role, resource flows, and corresponding strategic controls. Intraorganizational resource flows and strategic controls are critical for understanding product innovation in banks. The study revealed that staffing and norms and values seem to be the most critical resources for affecting the strategic controls corporate orientation programs, input control systems, and behavioral controls.