Effectuation, opportunity shaping and innovation strategy in high-tech new ventures
ISSN: 0025-1747
Article publication date: 10 July 2018
Issue publication date: 8 January 2019
Abstract
Purpose
Innovation strategy is critical for firms to achieve success in the market. However, relatively little is known about what factors promote the development of innovation strategy in high-tech new ventures. The purpose of this paper is to address this gap by developing and examining the theoretical model that links effectuation to innovation strategy through opportunity shaping in high-tech new ventures.
Design/methodology/approach
The proposed theoretical model is developed by integrating the effectuation theory, innovation strategy literature and opportunity literature. Empirical data were collected from 212 entrepreneurs and top executives in Chinese high-tech new ventures through a survey. Baron and Kenny’s (1986) mediation and moderation model assessment procedures are used to analyze the data.
Findings
The empirical results indicate that effectuation has a positive effect on innovation strategy and opportunity shaping. Opportunity shaping has a positive effect on innovation strategy, and its effect is positively moderated by competitive intensity. The author also finds that opportunity shaping plays a fully mediating role in the relationship between effectuation and innovation strategy.
Originality/value
These findings enrich innovation strategy research and advance the effectuation theory by providing empirical evidence of the impact of effectuation on innovation strategy in high-tech new ventures. The findings also contribute to a growing stream of research on opportunity and integrating opportunity shaping into a more complete framework of innovation. Moreover, this research provides deeper insight into the missing links between effectuation and innovation strategy in high-tech new ventures by uncovering the mediating role of opportunity shaping.
Keywords
Acknowledgements
The author is most grateful for the generous financial supports of National Natural Science Foundation of China (NSFC) (Grant No. 71602068, Grant No. 71620107001) and China Postdoctoral Science Foundation (Grant No. 2017T100215, Grant No. 2016M601388). The author is also grateful to Professor Shaker A. Zahra, University of Minnesota, for his helpful comments on this paper.
Citation
Guo, R. (2019), "Effectuation, opportunity shaping and innovation strategy in high-tech new ventures", Management Decision, Vol. 57 No. 1, pp. 115-130. https://doi.org/10.1108/MD-08-2017-0799
Publisher
:Emerald Publishing Limited
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