Celebrity capital as a strategic asset: Implications for new venture strategies

Abstract

Despite an increase in businesses started by celebrities, we have limited understanding as to how celebrity entrepreneurs benefit new ventures. Drawing on a reputational capital perspective, we develop the notion of celebrity capital and show how it can be used to uniquely differentiate the venture and to overcome liabilities of newness. We discuss how celebrity capital can negatively influence the venture when negative information about the celebrity surfaces and in terms of limiting the scope of the venture. We discuss the different strategic implications of celebrity capital for ventures using celebrity entrepreneurs versus endorsers.

Citation

Hunter, E.J., Henri Burgers, J. and Davidsson, P. (2009), "Celebrity capital as a strategic asset: Implications for new venture strategies", Lumpkin, G.T. and Katz, J.A. (Ed.) Entrepreneurial Strategic Content (Advances in Entrepreneurship, Firm Emergence and Growth, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 137-160. https://doi.org/10.1108/S1074-7540(2009)0000011007