book is about one way in which large corporations can be entrepreneurial: by partnering with external startups. Specifically, it is about key principles and practices that have been distilled from the entrepreneurial actions of managers who helped their corporations engage with startups. To be clear, opening an innovation lab here and organizing a hackathon there won't make a difference. This is about substantive programmatic interventions that could ultimately underpin a more fundamental change of the organization as a whole becoming more entrepreneurial.
This book tackles corporate-startup partnering in three parts (see Figure P.2), with two chapters each.
Why: Co-aligning with Strategy
Chapter 1, Why Entrepreneurship Matters for Large Corporations, deals with the imperative for partnering with startups. Corporations need to be entrepreneurial in order to renew themselves in the face of a fast-changing environment. In the face of disruption, some of which may emanate from startups, large corporations have the opportunity to collaborate with startups. There is scope for these very different sets of organizations to combine what each is good at – corporations' efficient use of existing resources and capabilities with startups' agile development of new capabilities and ideas – in a way that is consistent with the corporation's strategic priorities.
Figure P.2 Overview of Gorillas Can Dance
Chapter 2, Why Partnering with Startups Isn't Easy, highlights the challenge in partnering. While there is a potential for a win-win, it is not straightforward for large corporations and startups to work together naturally. Organizational differences, as well as a power advantage in favor of the large corporation, mean that “business as usual” is unlikely to work in terms of making corporate-startup collaboration feasible or meaningful. Thus the very differences that make these partners attractive to each other may in fact make it difficult for them to work together; effective startup partnering requires recognizing these asymmetries.
How: Co-innovating with Startups
Chapter 3, How to Partner with Startups Systematically, sheds light on the partnering process. Entrepreneurial managers within the large corporation have to make a robust effort to make startup partnering work. Doing so entails working out systematic programmatic interventions that help overcome the sheer asymmetries between corporations and systems. Corporations need to discover what formats work more effectively for them. The key is to develop a clear partnering process that will make it more likely that corporations and startups can collaborate in a way that realizes the potential of a win-win partnership.
Chapter 4, Building the Capability to Partner with Startups, is about developing the requisite partnering capability. Beyond figuring out a process that works, corporations need a new partnering capability to refine, replace, and add partnering practices over time. Carving out dedicated teams for startup engagement helps build the capability to repeatedly put in place systematic partnering processes and practices. This may take time, but for a corporation that takes startup partnering seriously, the investment of effort is worth it, and indeed essential.
Where: Co-evolving with Ecosystems
Chapter 5, Partnering with Startups Around the World, is concerned with partnering globally. For a multinational corporation, there is scope to partner with startups across multiple local milieus. This could range from established clusters in the West like Silicon Valley to outlier ecosystems such as Israel in the Middle East and emerging markets, such as China, India, and, increasingly, Africa. Multinationals like Microsoft have thus been able to harness globalization by tapping entrepreneurial talent around the world, making sure that they adapt practices to local contexts, adopt new practices in locations like Israel, and develop a portfolio of locations that include emerging and developing markets.
Chapter 6, Partnering with Startups as a Force for Good, is exactly about that – partnering for good. In addition to jointly creating economic value, there is scope for corporate-startup partnering to have a social impact. This is particularly so in locations like Kenya, for instance, that have traditionally been underserved but have both a growing appetite for entrepreneurship and many socially relevant problems to solve. From the corporation's perspective there is scope to not only build goodwill but also, if it takes a long-term view, reap the benefits of development in those regions, as the demand for their services grow – and the 2030 Sustainable Development Goals are achieved.
The chapter outline is summarized in Figure P.3.
Figure P.3 Gorillas Can Dance Chapter Outline
NOTES
1 1. http://allthingsd.com/20070531/d5-gates-jobs-transcript/ (accessed 22 March 2021).
2 2. The process of technological change at Microsoft, entailing cloud computing and artificial intelligence (AI), is insightfully described in Iansiti, M., and Lakhani, K. R. (2020). Competing in the Age of AI: Strategy and Leadership When Algorithms and Networks Run the World. Boston, MA: Harvard Business Review Press.
3 3. Kim, T. (2018). How Microsoft Beat Out Apple and Became the World's Most Valuable Company. https://www.barrons.com/articles/how-microsoft-beat-out-apple-and-became-the-worlds-most-valuable-company-1543623288 (accessed 22 March 2021).
4 4. CHM Editorial (2018). Changing Lanes: Meet New CHM President and Chief Executive Officer Dan'l Lewin. https://computerhistory.org/blog/changing-lanes-meet-new-chm-president-and-chief-executive-officer-danl-lewin/ (accessed 22 March 2021).
5 5. Monk, B. (n.d.). Making – and Preserving – History. https://www.microsoftalumni.com/s/1769/19/interior.aspx?sid=1769&gid=2&pgid=2066&sitebuilder=1&contentbuilder=1 (accessed 22 March
