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1 – 10 of over 2000Edoardo Trincanato and Emidia Vagnoni
The lean startup approach (LSA) is extensively utilized by early-stage entrepreneurs, with “pivot” serving as a key pillar. However, there is a research gap concerning the…
Abstract
Purpose
The lean startup approach (LSA) is extensively utilized by early-stage entrepreneurs, with “pivot” serving as a key pillar. However, there is a research gap concerning the boundary conditions impacting LSA and pivot decisions, especially when addressing societal challenges, as in the context of transformational entrepreneurship. In this regard, the healthcare sector, further compounded by a lack of research on startups and scale-ups, presents an embraced opportunity to provide multiple contributions for both theory and practice.
Design/methodology/approach
The present investigation employs a grounded approach to explore the experiences of the co-founders of a fast-growing Italian e-health startup. A narrative strategy was employed to organize conditions and evolving strategic action/interactions into three different pivoting phases of the startup – before the pivot, its enactment and aftermath – with primary and secondary data collected over a period of one year.
Findings
Pivoting in digital healthcare unfolded as a liminal experience marked by factors such as high regulation, multiple stakeholders, technological and symbolic ambivalence, resource-intensive demands and institutional actors acting as pathway pioneers, leading to an information overload and unforeseeable uncertainty to manage. These factors challenge entrepreneurs' ability to attain optimal distinctiveness, presenting the paradoxical need for vertical flexibility for scaling up.
Social implications
By uniquely illuminating the sector’s constraints on entrepreneurial phenomena, this study provides a valuable guide for entrepreneurs and institutional actors in addressing societal challenges.
Originality/value
This study introduces a process model of transformational information crafting when pivoting, highlighting the role of entrepreneurs' transformational stance and platform-mediated solutions as engines behind strategies involving information breaking and transition, preceding knowledge-driven integration strategies.
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Wensong Bai, Mikael Hilmersson, Martin Johanson and Luis Oliveira
The authors seek to advance the understanding of small- and medium-sized enterprise (SME) internationalization at the regional level and examine the role of home market…
Abstract
Purpose
The authors seek to advance the understanding of small- and medium-sized enterprise (SME) internationalization at the regional level and examine the role of home market institutions in this process.
Design/methodology/approach
The authors analyze hypotheses with data from SMEs in five country markets and from the Global Entrepreneurship Monitor. A cluster analysis establishes the regional diversification patterns (based on regional diversification scope, speed and rhythm) and a multinomial regression tests the effect of home market institutions on their adoption.
Findings
The results offer a refined picture of SME regional diversification by revealing three patterns: intra-regionally focused firms, late inter-region diversifiers and early inter-region diversifiers. They also suggest that the adoption of these patterns is determined by SMEs' home market institutions.
Originality/value
The authors develop a nuanced understanding of SME internationalization by building upon and expanding the regionalization rationale in the internationalization patterns literature. Additionally, the authors address the acknowledged, yet rarely investigated, country-level determinants of internationalization patterns.
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Keywords
This financing gap -- between what SMEs require to meet expansion targets and what they can raise from internal or external sources -- has been estimated at 1.1-2.2% of GDP…
Details
DOI: 10.1108/OXAN-DB285339
ISSN: 2633-304X
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Topical
Francesco Aiello, Paola Cardamone, Lidia Mannarino and Valeria Pupo
The purpose of this study is to investigate whether and how inter-firm cooperation and firm age moderate the relationship between family ownership and productivity.
Abstract
Purpose
The purpose of this study is to investigate whether and how inter-firm cooperation and firm age moderate the relationship between family ownership and productivity.
Design/methodology/approach
We first estimate the total factor productivity (TFP) of a large sample of Italian firms observed over the period 2010–2018 and then apply a Poisson random effects model.
Findings
TFP is, on average, higher for non-family firms (non-FFs) than for FF. Furthermore, inter-organizational cooperation and firm age mitigate the negative effect of family ownership. In detail, it is found that belonging to a network acts as a moderator in different ways according to firm age. Indeed, young FFs underperform non-FF peers, although the TFP gap decreases with age. In contrast, the benefits of a formal network are high for older FFs, suggesting that an age-related learning process is at work.
Practical implications
The study provides evidence that FFs can outperform non-FFs when they move away from Socio-Emotional Wealth-centered reference points and exploit knowledge flows arising from high levels of social capital. In the case of mature FFs, networking is a driver of TFP, allowing them to acquire external resources. Since FFs often do not have sufficient in-house knowledge and resources, they must be aware of the value of business cooperation. While preserving the familiar identity of small companies, networks grant FFs the competitive and scale advantages of being large.
Originality/value
Despite the wide but ambiguous body of research on the performance gap between FFs and non-FFs, little is known about the role of FFs’ heterogeneity. This study has proven successful in detecting age as a factor in heterogeneity, specifically to explain the network effect on the link between ownership and TFP. Based on a representative sample, the study provides a solid framework for FFs, policymakers and academic research on family-owned companies.
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Sanjay Dhamija and Reena Nayyar
The case study is designed to help students understand how the “growth at all costs” attitude can lead to compromised corporate governance in a start-up leading to disastrous…
Abstract
Learning outcomes
The case study is designed to help students understand how the “growth at all costs” attitude can lead to compromised corporate governance in a start-up leading to disastrous implications for all the stakeholders. This case study aims to make students understand the components of the fraud triangle, the impact of financial fraud on various stakeholders, the role of venture capitalist (VC) investors and the importance of good corporate governance in start-ups. The case study presents an excellent opportunity for students to discuss the consequences of ignoring good governance in the pursuit of growth in a start-up. After analyzing the case study, the students shall be able to explain the concept of the fraud triangle and to be able to identify the motivation, opportunity and rationalization of financial irregularities in a start-up; analyze the impact of financial irregularities on various stakeholders; comprehend the business model of VCs and evaluate its influence on VC-funded start-ups; and appraise the importance of good corporate governance in start-ups.
Case overview/synopsis
The case study revolves around the confession of financial irregularities made by one of the cofounders of GoMechanic, a start-up headquartered in Gurugram, India. On January 18, 2023, Amit Bhasin confessed to financial irregularities in the company’s financial statements, leading to laying off 70% of the workforce of the company. GoMechanic had earlier raised close to US$62m [1] from maverick global investors including Sequoia Capital, Tiger Global, Orios Venture Partners and Chiratae Ventures, and was negotiating to raise Series D financing from the Japanese multinational SoftBank with aspirations to be a unicorn (start-up with a valuation of over $1bn). The confession led to a debate about the consequences of the “growth at all cost” culture being followed by start-ups as well as VCs. GoMechanic was not an isolated instance of a lack of governance in the start-ups. The confession had consequences not only for the GoMechanic but for the entire start-up ecosystem of India, which was the third largest in the world. Bhasin stated that the founders take full responsibility for the situation, and they were working on a plan which was most viable under the circumstances. However, it was not going to be easy to regain the confidence of the investors.
Complexity academic level
The case study is best suited for senior undergraduate- and graduate-level business school students and in executive education programs in courses such as corporate governance and ethics, private equity and entrepreneurial finance.
Supplementary material
Teaching notes are available for educators only.
Subject code
CSS 1: Accounting and finance
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Aswathy Sreenivasan and M. Suresh
This study aims to emphasize the integration of lean start-up and design thinking approaches and investigate how they may be used together.
Abstract
Purpose
This study aims to emphasize the integration of lean start-up and design thinking approaches and investigate how they may be used together.
Design/methodology/approach
The report uses a systematic literature review methodology to analyze and summarize previous research on combining lean start-up and design thinking. Inferences were discovered and analyzed after relevant publications were chosen based on predetermined inclusion criteria.
Findings
The research shows that combining lean start-up and design thinking significantly impacts entrepreneurship. Start-ups can efficiently uncover consumer needs, reduce risks and improve their product or service offerings by combining the client-centricity of design thinking with the iterative and data-driven concepts of lean start-up. This integration promotes an innovative culture, gives teams the freedom to try new things and learn from mistakes and raises the possibility of start-up success.
Research limitations/implications
The dependence on pre-existing literature, which might cover only some potential uses and circumstances, is a weakness of this research. It is advised that more empirical research be conducted to determine the precise circumstances in which the integrated strategy performs best. Future studies should also explore the difficulties and drawbacks of using these approaches to offer suggestions for overcoming them and maximizing their advantages.
Practical implications
The findings have significant ramifications for business owners and other professionals working in the start-up environment. The combination of lean start-up and design thinking emphasizes the relevance of early customer interaction and empathy-driven design. To foster creativity and hasten the expansion of start-ups, practitioners are urged to create a comprehensive strategy that integrates the advantages of both techniques. Through this integration, business owners may develop solutions that appeal to their target market, increasing adoption rates and market competitiveness.
Originality/value
This study is interesting in comparing lean start-up and design thinking, emphasizing the overlaps and benefits of their application to entrepreneurship. This study discusses successful start-up methods by offering suggestions for future research and practice. It also provides a basis for further developing and adopting the integrated approach.
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Misal Ijaz, Naila Sadiq and Syeda Fizza Abbas
This paper aims to investigate the impact of retrenchment strategy on firm performance in the context of Pakistani firms while considering the moderating role of chief executive…
Abstract
Purpose
This paper aims to investigate the impact of retrenchment strategy on firm performance in the context of Pakistani firms while considering the moderating role of chief executive officer (CEO) power. By examining the influence of CEO duality and CEO share ownership on the relationship, this study contributes to strategic management and corporate governance knowledge within the Pakistani business environment.
Design/methodology/approach
A quantitative approach was used to analyze the relationship using data from annual financial statements. The sample consisted of 76 companies from the KSE-100 index from the year 2015 to 2020. Random effects regression models were used, along with hierarchical regression to explore the moderating effect of CEO power.
Findings
The findings demonstrate that the implementation of a retrenchment strategy positively impacts firm performance in Pakistani firms. The study also reveals that CEO power plays a crucial role in strengthening the relationship between retrenchment strategy and firm performance. Moreover, the study highlights the importance of considering the temporal sequence, size and age of firms when examining the impact of CEO power and retrenchment strategy on firm performance.
Research limitations/implications
The study enhances the understanding of the contingent nature of retrenchment strategies and the influence of CEO power in the Pakistani business context. Practically, the research contributes to strategic management and corporate governance dynamics, facilitating the development of strategies that enhance firm performance and sustainability in Pakistan.
Originality/value
This research provides original insights by specifically focusing on the Pakistani context and analyzing the interplay between retrenchment strategy, CEO power and firm performance. The study adds to the limited literature on the relationship between retrenchment and performance in the Pakistani business environment. Additionally, it highlights the significance of CEO power as a critical factor in determining the success of retrenchment.
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Yongseok Jang, Jing Zhang and Dianhan Zheng
Recent high-profile ethical scandals in start-up organizations have made people wonder whether entrepreneurship may cultivate a work environment with less emphasis on ethics. This…
Abstract
Purpose
Recent high-profile ethical scandals in start-up organizations have made people wonder whether entrepreneurship may cultivate a work environment with less emphasis on ethics. This study examined a psychological process about how an organization’s entrepreneurial orientation (EO) can affect its treatment of probationary employees, a vulnerable yet understudied group of workers.
Design/methodology/approach
The authors recruited 241 participants through Amazon Mechanical Turk. They answered an online survey about their experiences as probationary employees.
Findings
This study found that job feedback and meaning moderated the relationship between EO and ethical climate, such that this relationship was statistically significant and positive only among participants who reported high levels of feedback and job meaning. Ethical climate, in turn, was found to be related to a reduction in workplace incivility experienced by probationary employees. The indirect effect of EO on incivility via ethical climate was contingent on job feedback and meaning.
Research limitations/implications
This study extends the discussion on the entrepreneurial context, adds to EO literature with findings on its indirect effect on nonfinancial performance and reinforces institutional theory through job characteristics’ moderating roles. However, a methodological limitation is conducting a cross-sectional single-source survey due to limited access to firms and probationary employees, considering the hidden population involved.
Practical implications
This study found no evidence of probationary employee exploitation in high EO organizations. Job seekers should embrace probationary work at start-ups. Entrepreneurial leaders should balance being proactive, innovative and caring toward employees.
Originality/value
It is debatable whether entrepreneurship leads to unethical organizational conduct. By studying a vulnerable group of employees, the authors discovered that EO, when paired with favorable job design factors, can create a more ethical workplace where temporary talents are treated with dignity and respect.
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Vera Rebiazina, Elena Sharko and Svetlana Berezka
The paper aims to reveal the impact of relationship marketing (RM) practices adopted by companies in emerging markets on their market and financial performance (FP) over a…
Abstract
Purpose
The paper aims to reveal the impact of relationship marketing (RM) practices adopted by companies in emerging markets on their market and financial performance (FP) over a long-term, 13-year perspective.
Design/methodology/approach
The research design combines primary empirical data from 229 Russian companies, based on the Contemporary Marketing Practices (CMP) survey, and objective FP data from official statistical databases for 2008–2020 to verify the impact of RM practices on market and FP in the long term.
Findings
The research underlines the significant impact of RM practices. It is important to notice that the effect of product development (PD) on marketing performance is mediated by competitor orientation. PD affects market and FP, whose roles vary with the return on assets (ROA).
Research limitations/implications
Research design supplements the subjective survey data with the objective FP data on the ROA to avoid common method bias.
Practical implications
Implementation of RM practices by Russian companies can increase their effectiveness of performance in the long term.
Originality/value
This research shows the positive impact of RM practices on the FP of Russian firms over the past 13 years.
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Mehrzad Saeedikiya, Aidin Salamzadeh, Yashar Salamzadeh and Zeynab Aeeni
The current research aimed to investigate the external enablement role of Digital Infrastructures (DI) in the interplay of entrepreneurial cognitions and innovation.
Abstract
Purpose
The current research aimed to investigate the external enablement role of Digital Infrastructures (DI) in the interplay of entrepreneurial cognitions and innovation.
Design/methodology/approach
Data from the Global Entrepreneurship Monitor (GEM) and Digital Economy and Society Index (DESI) were used for analyses. This yielded a sample of 8,601 Generation Z entrepreneurs operating in 25 European countries.
Findings
Applying hierarchical moderated regressions showed that socio-cognitive components of an entrepreneurial mindset (self-efficacy, risk propensity, opportunity identification) affect innovation among Generation Z entrepreneurs. More importantly, DI plays an external enablement role in the interplay of cognitions and innovation among Generation Z entrepreneurs.
Originality/value
This study contributes to the socio-cognitive theory of entrepreneurship by integrating an external enablement perspective into the study of cognitions and entrepreneurial outcomes (here, innovation). It contributes to the digital technology perspective of entrepreneurship by connecting the conversation about the socio-cognitive perspective of entrepreneurship regarding the role of cognitions in innovation to the conversation in information systems (IS) regarding technology affordances and constraints. This study extends the application of the external enabler framework to the post-entry stage of entrepreneurial activity and integrates a generational perspective into it.
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