This case uses Uber Technologies Inc. to engage students in a serious conversation about how a firm both affects its stakeholders and is affected by its stakeholders as well as the role of strategic leadership in the amount of emphasis placed on ethical practices. Uber represents a visible high-growth startup that has received considerable positive and negative attention in the media; however, few people know of the extent of its aggressive management approach. Much of the publicity about Uber is both a direct consequence of and a direct consequence for stakeholder relationships. Students are asked to analyze Uber’s approach and offer suggestions for moving forward.
This case was created using secondary data sources. The issues for Uber that led the authors to write this case were not very flattering to Uber, and therefore, the authors decided to use secondary sources. Since Uber and many of its direct competitors were private companies, the authors collected as much financial data as the authors could from publicly available sources. Also, due to the contentious nature of some of the managerial tactics used within Uber, the use of secondary data sources was warranted.
Relevant courses and levels
This case was crafted with senior undergraduate students in strategic management as the primary audience, but is also relevant for MBA-level strategy courses as well. This case touches upon core content in the vast majority of undergraduate strategic management courses with a special emphasis on two concepts underrepresented in most strategic management textbooks, stakeholder theory and ethical decision making.
While much has been debated about venture formation and demise, the behavioral dynamics of why entrepreneurs intend to continue and persevere post-startup have received…
While much has been debated about venture formation and demise, the behavioral dynamics of why entrepreneurs intend to continue and persevere post-startup have received scant attention and scrutiny. Building upon the rich tapestry of entrepreneurial cognition, the purpose of this paper is to forward entrepreneurial continuance logic as a theoretical framework to empirically investigate the antecedents, contingencies and mediators of entrepreneurial continuance.
Using observations from surveying 156 practicing entrepreneurs across the USA, UK, South Africa and India, this research offers interesting findings.
Results surface attitudinal tensions between the transactional attitudes of entrepreneurial climate, entrepreneurial responsiveness and calculative commitment and the relational attitudes of affective and normative continuance. Specifically, the authors find that affect is the strongest direct predictor of continuance intentions but only in the absence of entrepreneurial responsiveness behavior.
Entrepreneurial responsiveness, rather than commitment, is found to be a core continuance constituent, traceable as a positive influence on continuance as a direct antecedent, a moderator and a mediator.
The research reveals that entrepreneurs willing to seize and adapt to a changing entrepreneurial landscape are more like to continue with their ventures, but not just driven by strict underpinnings of affect and norms but by a strong sense of economic rationality.
Entrepreneurial continuance is an important behavioral phenomenon with substantial socio-economic consequences. Given the scant attention paid to entrepreneurial continuance – symptomatic of broader downstream effects of entrepreneurial survival and positive socio-economic spillovers, the authors embark on a systematic investigation of continuance intention as post-startup behavior.
The paper explains post-startup entrepreneurial behavior in several ways. First, while affective commitment, a relational attitude, still drives continuance intentions, calculative commitment, a transactional attitude, is a significant contender. Interestingly, the nature of contemporary entrepreneurship disregards continuance behavior based on norms. Second, entrepreneurial responsiveness needs to be cautiously examined in relationship to commitment and continuance. Entrepreneurial responsiveness, a transactional attitude, positively influences continuance; however, in the presence of a relational attitude such as affective commitment, the interplay reduces continuance intentions. Third, perceptions of entrepreneurial climate are found to trigger more opportunity-seeking behavior among entrepreneurs, which in turn increases an entrepreneur’s intention to continue.