Corporate venture (CV) units constitute vehicles through which firms may act ambidextrously, thereby increasing their longevity, but they suffer from a high failure rate. The authors examine why and how some CV units last significantly longer than others. They argue that CV units endure by developing an ambidextrous orientation themselves-they build new capabilities for the parent firm while simultaneously leveraging its existing strengths. They argue that CV units become ambidextrous by nurturing a supportive relational context, defined by the strength of their relationships with three different sets of actors-parent firm executives, business unit managers, and members of the venture capital community. Using primary data collected from 95 CV units over a three-year period, the authors test and find support for these arguments.

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Research on the microfoundations of ambidexterity has identified a number of drivers that shape the ability of individuals to overcome exploration-exploitation tensions. However, little is known about how these drivers interact and whether they act as complements or substitutes. In a two-stage survey of small and medium-sized enterprises, we find that formal structural drivers and informal contextual drivers of ambidexterity do not demonstrate complementarity, as generally assumed, but rather act at cross-purposes with each other. Furthermore, we find that behaviorally complex executives (those with the ability to think and act ambidextrously) appear to render the effects of the other two drivers relatively unimportant, and are only ever associated with moderate levels of ambidexterity. These findings permit the development of important theoretical insights for ambidexterity research from a microfoundations perspective.