Relational Sources of Value Creation in Diversification Implementing Through Internal Development

Over the last four decades, companies have been interested in diversification strategies and creating multi-business corporations. Therefore, understanding how these corporations might be managed, has been one of the most important issues in management discipline.“Managing diversification and internal relationships in a diversified company” is one of the most important factors that affect performance. The internal development through “internal corporate venturing (ICV)”- independent ventures with full share of parent company- is a most popular mechanism for implementing diversification, especially in technologybased companies. Creating value by combining and coordinating new business units is expected from this method as used for development strategies in corporate level. So, the main goal is to study value creating mechanisms in parent-subsidiary relationship while applying ICV as a method for implementing diversification. This research is based on relational approach to value creating, and has focused on the business units, not parent company for its data. National Petrochemical Company of Iran is the core case for our studies.