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1 – 10 of over 1000Arturo Torres and Javier Jasso
This chapter aims to analyze the participation of entrepreneurship studies from the perspective of capabilities and technology-based startups in Latin America, which implies…
Abstract
This chapter aims to analyze the participation of entrepreneurship studies from the perspective of capabilities and technology-based startups in Latin America, which implies considering capabilities from a perspective of innovation, technology, knowledge, and learning. The chapter conducts a bibliometric review from which the characteristics of the Latin American presence in the analysis of startups and related issues are identified. The analysis shows that Latin America has had a small but growing presence at the world level, as is the case with the treatment of the startups in the international arena, and where the topics of innovation and capabilities have been little addressed. A scheme is proposed based on which entrepreneurial capabilities are considered as a way of understanding the creation and trajectory of startup companies. In the trajectory of the startup companies, these capabilities unfold and grow through processes of integration of complementary resources and learning processes, which result in the construction of new capabilities that feed the further growth of the company.
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Chinho Lin, JyunLin Jiang, Ya‐Jung Wu and ChiaChi Chang
The purpose of this paper is to present a cooperation model identifying the R&D capability as the central driver of startup commercialization strategy, by which new startups can…
Abstract
Purpose
The purpose of this paper is to present a cooperation model identifying the R&D capability as the central driver of startup commercialization strategy, by which new startups can evaluate their relative R&D capability and consequently choose an appropriate commercialization strategy.
Design/methodology/approach
A cooperation model has been constructed, and drawing upon the patent data of 91 aluminum nitride manufacturers, the implications of R&D capability for commercialization strategy are illustrated.
Findings
The authors' analysis suggests that competitive interaction between startup innovators and established firms depends on the R&D capability of the startup innovators, which can be evaluated by patent data.
Practical implications
For technologically efficient firms, a high level of integration to achieve the benefits of economies of scope will lead to more profits. However, for technologically inefficient firms, maintaining a low level of integration to achieve the benefits of specialization is the better strategy.
Originality/value
This paper provides a simplified model which combines an evaluation of R&D capability using patent data with strategic decision making to facilitate successful commercialization in startups.
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Yan Zhou, Sangmoon Park, Qifeng Wang, Justin Zuopeng Zhang and Abhishek Behl
Bike-sharing is popular worldwide, and it has led to a new development direction in green transportation. However, the collapse of many bike-sharing startups and residual social…
Abstract
Purpose
Bike-sharing is popular worldwide, and it has led to a new development direction in green transportation. However, the collapse of many bike-sharing startups and residual social problems has brought about contradictions and challenges to the development of the industry. The purpose of this paper is to determine how internal factors affect the survival of bike-sharing startups.
Design/methodology/approach
The authors used binary logit regression as the measurement model to conduct an empirical analysis based on 137 bike-sharing startups in China. The study focuses on using traditional theoretical evidence and considers the uniqueness of the industry to jointly explore the survival factors that influence the emerging business model of bike-sharing.
Findings
The results show that entrepreneurial team size and differentiation strategy positively influence survival. Founder-CEOs have a negative impact on survival. Founders' entrepreneurial experience and venture capital have no significant influence on survival.
Originality/value
The results verify the role of traditional survival factors in the new business model of sharing economy and fill the research gap on the survival strategy of startups. This study offers a unique perspective for researchers to better understand the sharing economy industry and provides practical guidance for entrepreneurs and investors to enter the market.
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The purpose of this paper is to indicate an innovative solution to address the financing issues faced by “Micro-, Small and Medium Enterprises” (MSME) in emerging economies.
Abstract
Purpose
The purpose of this paper is to indicate an innovative solution to address the financing issues faced by “Micro-, Small and Medium Enterprises” (MSME) in emerging economies.
Design/methodology/approach
Islamic Financial Institutions (IFIs) especially Islamic banks are competing for high net worth individuals, whereas the MSME sector is largely untapped. A collaborative model for IFIs is suggested, to explore the MSME sector. Islamic Non-Banking Financial Institutions (NBFIs) are operating in these markets through their extensive gross route networks. The multistep collaborative model proposes “Special Purpose Entity (SPE)” partially owned by a single Islamic Bank or consortium and NBFI/s. SPEs can be incorporated with a defined scope, focus areas, risk profile, budget and shareholding patterns.
Findings
Risk and profit sharing instruments also known as Musharakah and Mudarabah have less than 6 percent share within total financing offered by Islamic banks globally. Risk sharing products offered by Islamic banks are not targeting this sector due to the underdevelopment of instruments, lack of knowledge and resources. Proposed SPEs can operate regionally with a concentration on specific business sectors.
Originality/value
The SPE model would enable Islamic banks to enter the huge MSME market while mitigating risk. On the contrary, it would enable the large segments of emerging economies (bottom 40 percent population of developing nations) to get involved and actively play their role to attain long-term development goals.
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Sam Solaimani, Tijl van Eck, Henk Kievit and Kitty Koelemeijer
Lean Startup (LS) has gained considerable traction in the startup scene, especially within digital firms where the concept finds the concept's genesis. However, there are more and…
Abstract
Purpose
Lean Startup (LS) has gained considerable traction in the startup scene, especially within digital firms where the concept finds the concept's genesis. However, there are more and more calls in the entrepreneurship literature to study LS's application beyond the digital context. The purpose of this study is to explore the applicability of LS within the largely under-researched context of non-digital entrepreneurs. To structure the authors' understanding of the participating entrepreneurs' cognitive and behavioural logic, effectuation theory is applied.
Design/methodology/approach
To explore how LS is applied in non-digital settings, this study analyses the LS approach of 15 Dutch brick-and-mortar and click-and-mortar Small to Medium-sized Enterprises (SMEs) and startups.
Findings
This study provides empirical evidence that non-digital entrepreneurs pursue an effectual logic in their LS approach. However, the entrepreneurs' LS approach appeared to be contextualised to the non-digital contexts' inherent constraints and trade-offs. Such contextualisation calls for a particular set of skills and competencies, including applying mixed-methods cross-validation, affinity and passion for craftsmanship and aesthetics, inferring from limited, qualitative, and often skewed data, establishing an empathetic collaborative relationship with customers and suppliers, and leveraging prior market knowledge and experience.
Originality/value
This study advances the current understanding of the LS applicability and gives a more nuanced account of how LS is practised in the context of non-digital firms, the challenges entrepreneurs involved in non-digital firms need to overcome, and the skills and competencies they need to possess. In practical terms, the findings help non-digital entrepreneurs and coaches to be more heedful of the contextual peculiarities when employing LS.
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Anuradha Basu and Meghna Virick
– The purpose of this paper is to examine the factors that influence the success of entrepreneurial ventures started by members of the Indian diaspora in Silicon Valley.
Abstract
Purpose
The purpose of this paper is to examine the factors that influence the success of entrepreneurial ventures started by members of the Indian diaspora in Silicon Valley.
Design/methodology/approach
It is based on survey data collected from Indian-born high-tech entrepreneurs living in Silicon Valley, and uses Bayesian estimation to test hypotheses aimed at understanding entrepreneurial growth. Specifically, the paper examines the linkages between prior startup experience, participation in diasporic networks, and new venture growth.
Findings
It finds that entrepreneurs with prior startup experience displayed more active participation in diasporic networks, and were more likely to have co-founders. Active network participation over a length of time was positively related to new venture growth. The findings contribute toward the understanding of the value of startup experience in leveraging social networks, and the relationship between diasporic network participation and entrepreneurship.
Research limitations/implications
As a cross-sectional study with a single data source, it is subject to concerns about causality and common method variance.
Practical implications
The results highlight the value of serial entrepreneurship and the potential benefits to immigrant entrepreneurs of participating in diasporic social networks, especially those with a global reach. They also suggest that investors would be better off investing in entrepreneurs who have greater startup experience and participate actively in diasporic networks.
Originality/value
The paper is based on a very unique sample of Indian-born immigrant high-tech entrepreneurs based in the Silicon Valley. It provides a deeper understanding of the role of diasporic social networks, and their relationship with prior startup experience and entrepreneurial success within that context.
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Alessia Pisoni and Alberto Onetti
The purpose of this paper is to present an overview of trends toward start-up exits. Exits represent the “end phase” of the start-up process, at least for the founders and the…
Abstract
Purpose
The purpose of this paper is to present an overview of trends toward start-up exits. Exits represent the “end phase” of the start-up process, at least for the founders and the early investors. For high-growth venture-capital-backed companies, exits are often considered the ultimate goal of building a profitable venture. These ventures are intended from the beginning to harvest the financial value created by the business at some point in the future, and return capital to early investors.
Design/methodology/approach
The authors tracked 5,744 merger and acquisition transactions that have occurred between European and US tech start-ups since 2012. Data are drawn from CrunchBase, the most comprehensive database of high-tech companies and investors with information on the companies and investors around the world. The authors then compared the trends of acquisitions between European and US companies.
Findings
Results show that US companies are far more inclined to make acquisitions than European ones. Acquirers of start-ups, both from Europe and the US, prefer to buy local companies. However, recently, US companies have started to show more interest in European start-ups. Thus, signaling that the European start-up ecosystem is growing and becoming more attractive for US buyers. Furthermore, results show that start-up exits typically happen within a few years after a company’s establishment.
Research limitations/implications
The research does not take into consideration the price of the transaction, or the amount of capital invested by venture capitalists in the high-tech start-ups that have been acquired. Further research should address this specific problem by helping European start-ups understand how to plan the exit phase within few years from establishment.
Practical implications
The results have important implications both for entrepreneurs/managers and policymakers. Early exit appears to be a global trend among start-ups. This suggests that the exit phase should be properly planned to happen in the very early stage of the start-up process. On the other hand, the research also shows that there is still a gap to be filled in the European start-up ecosystems’ ability to produce exits and create new large innovative companies (the so-called “unicorns”).
Originality/value
To date, there has been a little research about exits for young high-tech ventures. This paper will attempt to shed new light on this so far under-explored issue by specifically analyzing exits as financial strategy for investors and entrepreneurs.
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Emanuela Scarmozzino, Vincenzo Corvello and Michele Grimaldi
The purpose of this paper is to analyze the contribution of professional social networking websites (PSNWs) to entrepreneurial learning in high-tech startups. In addition, in the…
Abstract
Purpose
The purpose of this paper is to analyze the contribution of professional social networking websites (PSNWs) to entrepreneurial learning in high-tech startups. In addition, in the present paper, the relationships between intellectual capital (IC) and PSNW-supported entrepreneurial learning have been investigated.
Design/methodology/approach
The paper is based on data collected through a questionnaire distributed to entrepreneurs and managers of high-tech startups. In order to understand the behavior of startuppers in PSNWs two theoretical constructs have been devised, which could put into evidence knowledge sharing and knowledge seeking occurrences. In these constructs, entrepreneurial learning represents the dependent variable, while IC components are considered as moderators. The obtained results have been analyzed through hierarchical regression.
Findings
Results have indicated that PSNWs support the learning processes of startuppers and that the social capital, one of the components of IC acts as an important mediator in the hypothesized relationships between knowledge seeking activities and entrepreneurial learning.
Research limitations/implications
This study has taken a sample of middle-sized entrepreneurships into consideration. Future research could be focused on larger entrepreneurships, in order to validate the obtained results. In addition, it could be interesting to examine further factors affecting the improvement of entrepreneurial learning practices in startuppers and larger organizations.
Originality/value
PSNWs are often used by entrepreneurs to create relations and to exchange knowledge. This fact notwithstanding, there is a dearth of studies that analyze how entrepreneurial learning can be facilitated by online social networking. The paper provides a clearer view of these issues and represents a first step in filling this research gap.
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Santiago Campero and Aleksandra (Olenka) Kacperczyk
Homophily, or the tendency for individuals to be attracted to those who resemble them, is significantly influential in the formation of startup founding and top management teams…
Abstract
Homophily, or the tendency for individuals to be attracted to those who resemble them, is significantly influential in the formation of startup founding and top management teams. But its role in subsequent stages of startup growth remains largely unclear. We consider the impact of homophily on matching of early workers to startups. We propose that, in the case of underrepresented minority groups, the tendency toward homophily plays an important role in this matching process, albeit in an asymmetric way. In particular, homophily exerts a stronger influence on the supply than the demand side: job candidates are more inclined to favor startups with demographically similar founders than startup founders are inclined to favor demographically similar job-seekers. Focusing on an important group of historically disadvantaged workers – women – we examine these arguments using unique data on the online recruiting of high-tech startups concentrated in the Silicon Valley. We find evidence suggesting that female candidates' propensity to apply to a job at a given startup increases with the proportion of female founders. However, startups with a higher proportion of female founders are not more likely than other startups to favor female candidates in personnel selection.
Entrepreneurs and their ventures are often portrayed as unambiguously positive forces in society. Specifically, high technology and equity-funded startups are heralded for their…
Abstract
Entrepreneurs and their ventures are often portrayed as unambiguously positive forces in society. Specifically, high technology and equity-funded startups are heralded for their innovative products and services that are believed to alter the economic, social, and even political fabric of life in advantageous ways. This paper draws on established theory on the causes of misconduct in and by organizations to elaborate the factors that can give rise to misconduct in entrepreneurial ventures, illustrating our arguments with case material on both widely known and less well-known instances of entrepreneurial misconduct. In venturing into the dark side of entrepreneurship, we hope to contribute to theory on entrepreneurship and organizational misconduct, augment entrepreneurship pedagogy, and offer ideas and examples that can enhance entrepreneurs’ awareness of their susceptibility to wrongdoing.
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