The too-much-of-a-good-thing effect of new ventures' opportunity development on innovation strategy under the Chinese context
Cross Cultural & Strategic Management
ISSN: 2059-5794
Article publication date: 30 March 2021
Issue publication date: 29 April 2021
Abstract
Purpose
The purpose of this research is to reveal how to improve the quality of entrepreneurship by exploring the key factor, opportunity development, impacting the innovation strategy of new ventures. It also introduces political and business ties as moderating variables to reveal the uniqueness of entrepreneurial activities in the Chinese context.
Design/methodology/approach
Empirical data from 215 entrepreneurs and top executives in Chinese new ventures were gathered through a survey and the statistical method used is the regression model.
Findings
The empirical results indicate that: (1) new ventures' opportunity creation positively impacts innovation strategy, while opportunity discovery has a curvilinear (inverted U-shape) impact on innovation strategy; (2) the relationship between opportunity development and innovation strategy is moderated by political and business ties.
Originality/value
This research analyzes and compares the effect of opportunity discovery and opportunity creation on new ventures' innovation strategy. This research further offers an in-depth understanding of the influence mechanism between opportunity development and innovation strategy among Chinese new ventures. Further, the results provide practical guidance for new ventures to develop innovation strategies and for Chinese governments to make entrepreneurial policies.
Keywords
Acknowledgements
This paper forms part of a special section “The Belt-and-Road Initiative in the New Era of Globalization: Unique Opportunities and Challenges to MNEs”, guest edited by Peter Ping Li, Peter J. Williamson, Abby Jingzi Zhou and Rosalie L. Tung.
This work is supported by the National Natural Science Foundation of China (No. 71972085), the Publicize Ideological and Cultural Young Talents Project “Study on the impact of new enterprise legalization strategy and entrepreneurial ability on competitive advantage in Chinese context” and the Graduate Innovation Fund of Jilin University (China, No. 101832020CX047). The authors would like to thank the senior editor and anonymous reviewers for making useful suggestions to improve the earlier draft of this paper.
Citation
Yin, M. and Zhou, B. (2021), "The too-much-of-a-good-thing effect of new ventures' opportunity development on innovation strategy under the Chinese context", Cross Cultural & Strategic Management, Vol. 28 No. 2, pp. 286-308. https://doi.org/10.1108/CCSM-02-2020-0059
Publisher
:Emerald Publishing Limited
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