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1 – 10 of 293Batkhuyag Ganbaatar, Khulan Myagmar and Evan J. Douglas
By examining the impact of product innovation on abnormal financial returns following the launch of new products, this study aims to test the explanatory power of a new compound…
Abstract
Purpose
By examining the impact of product innovation on abnormal financial returns following the launch of new products, this study aims to test the explanatory power of a new compound measure of product innovativeness (Ganbaatar and Douglas, 2019).
Design/methodology/approach
It is a longitudinal study in which the authors used the compound product innovativeness score (CPIS) for the first time to measure product innovativeness. The abnormal financial returns are estimated through the event study design, where four different models are used. Artificial neural network analysis is done to determine the impact of the CPIS on abnormal returns by utilising a hexic polynomial regression model.
Findings
The authors find effect sizes that substantially exceed practically significant levels and that the CPIS explain 65% of the variance in the firm’s abnormal returns in market valuation. Moreover, new-to-the-market novelty predicts 83% of the variation, while new-to-the-firm (catch-up) innovation insignificantly impacts firm value.
Research limitations/implications
This paper demonstrates how the CPIS, an objective and direct measure of product innovativeness, can be used to gain more insight into the innovation effect.
Practical implications
Implications for the business practice of this study include the necessity of relentless innovation by firms in contested differentiated markets, particularly where technological advance is ongoing. Larger and mature firms must practice corporate entrepreneurship to renew their products on a continuous basis to avoid slipping backwards in their markets. Innovation leadership, rather than following the leader, is also important to increase competitive advantage, given the result that innovation followship does not produce abnormal financial returns.
Originality/value
In this study, the authors focused on the effect of product innovativeness on firm performance. While the literature affirms a positive relationship between innovation and firm performance, the effect size of this relationship varies, due largely to the authors contend to simplistic measures of innovativeness. In this study, the authors adopt the relatively novel “compound” measure of product innovativeness (Ganbaatar and Douglas, 2019) to better encapsulate the nuances of both technical novelty and market novelty. This measure of product innovativeness is applicable to firms of all sizes but is more easily applied to entrepreneurial new ventures and SMEs, and it avoids the shortcomings of prior firm-level and subjective measures of innovativeness for both smaller and larger firms. Using a more effective analytical method (Artificial Neural Network), the authors investigated whether there is a “practically” significant effect size due to product innovation, which could be valuable for entrepreneurs in practice. The authors show that the CPIS measure can very effectively explain abnormalities in the stock market, exhibiting a moderate effect size and explaining 65% of the variation in abnormal returns.
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Farsan Madjdi and Badri Zolfaghari
This paper adds to the ongoing debate on judgements, opportunity evaluation and founder identity theory and shows that founders vary in their prioritisation and combination of…
Abstract
Purpose
This paper adds to the ongoing debate on judgements, opportunity evaluation and founder identity theory and shows that founders vary in their prioritisation and combination of judgement criteria, linked to their respective social founder identity. It further reveals how this variation among founder identity types shapes their perception of distinct entrepreneurial opportunities and the forming of first-person opportunity beliefs.
Design/methodology/approach
This study uses a qualitative approach by presenting three business scenarios to a sample of 34 first-time founders. It adopts a first-person perspective on their cognitive processes during the evaluation of entrepreneurial opportunities using verbal protocol and content analysis techniques.
Findings
The theorised model highlights the use of similar categories of judgement criteria by individual founders during opportunity evaluation that followed two distinct stages, namely search and validation. Yet, founders individualised their judgement process through the prioritisation of different judgement criteria.
Originality/value
The authors provide new insights into how individuals individuate entrepreneurial opportunities through the choice of different judgement criteria that enable them to develop opportunity confidence during opportunity evaluation. The study also shows that first-time founders depict variations in their cognitive frames that are based on their social identity types as they assess opportunity-related information and elicit variations in reciprocal relationships emerging between emotion and cognition. Exposing these subjective cognitive evaluative processes provides theoretical and practical implications that are discussed as well.
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High-tech start-up creation is associated with complex challenges originating from quick transformations in technologies and markets. To raise start-up survival and success…
Abstract
Purpose
High-tech start-up creation is associated with complex challenges originating from quick transformations in technologies and markets. To raise start-up survival and success chances, founders need to ensure a rapid conversion of a venture idea into a working business. This paper aims to explore how identity-related characteristics of founders influence the speed of the start-up creation process.
Design/methodology/approach
For this study, a longitudinal multiple-case-study design was selected to identify a vivid flow of decisions and actions taken by high-tech start-ups for analysis in depth. Over 20 months, a series of interviews were organized with founders of six start-ups located in the same business incubator in Russia. Also, a set of additional data sources was engaged, including publicly available data and internal documents provided by businesses.
Findings
The findings reveal contrasting dynamics of start-up creation processes among founders with differing role identities. Identity fit and identity misfit are suggested to be serious pull and push factors in the process of organizational becoming through the impact they have on the situational regulatory focus of founders.
Originality/value
The current research contributes to the entrepreneurship stream of research by extending the knowledge of how cognition affects the process of new venture creation.
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Archana Sharma and Mahim Sagar
The study aims to identify salespeople’s challenges while selling newly launched products in the fast-moving consumer goods (FMCG) sector by examining the holistic environment in…
Abstract
Purpose
The study aims to identify salespeople’s challenges while selling newly launched products in the fast-moving consumer goods (FMCG) sector by examining the holistic environment in which they perform their selling tasks. Furthermore, it develops a hierarchical model mapping the interrelationships between identified challenges to explore their dependence and driving power through qualitative research techniques.
Design/methodology/approach
The current study is exploratory and inductive in its research design. It used focus-group discussion (FGD), semistructured interviews and thematic content analysis (TCA) to identify new-product selling challenges in the FMCG sector. The identified factors were then worked into a hierarchical model using total interpretive structural modeling (TISM) to analyze their relationship. The factors were further classified into clusters based on their driving and dependence power, with the help of the Matrice d’Impacts Croisés Multiplication Appliquée à un Classement (MICMAC) technique
Findings
The TISM and MICMAC results identified salespeople’s most critical new-product selling challenges in the FMCG sector: product innovation, product differentiation, customer perception and market turbulence. An enhanced organizational focus on these factors will ensure that salespeople get adequate input to tackle the challenges they face while selling newly launched FMCG products.
Research limitations/implications
The study was confined to identifying challenges in the FMCG sector alone but offered scope for application in other sectors.
Practical implications
This study will help organizations to identify and close gaps in the new-product selling process, thereby improving the performance of salespeople and contributing to a new product’s success. The study findings have a bearing on various stages of product development, management and life cycle. They also highlight the need for greater synergy between an organization’s sales force and other departments.
Originality/value
To the best of the authors’ knowledge, this research is unique in identifying new-product selling challenges in the FMCG sector. It also delineates the complex Web of interrelationships between them and classifies the identified factors based on their driving and dependence on power. The research results can help in organizational decision-making and sales practices, empowering salespeople in their new-product selling tasks.
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Jerome L. Antonio, Alexander Lennart Schmidt, Dominik K. Kanbach and Natanya Meyer
Entrepreneurial ventures aspiring to disrupt existing market incumbents often use business-model innovation to increase the attractiveness of their offerings. A value proposition…
Abstract
Purpose
Entrepreneurial ventures aspiring to disrupt existing market incumbents often use business-model innovation to increase the attractiveness of their offerings. A value proposition is the central element of a business model, and is critical for this purpose. However, how entrepreneurial ventures modify their value propositions to increase the attractiveness of their comparatively inferior offerings is not well understood. The purpose of this paper is to analyze the value proposition innovation (VPI) of aspiring disruptors.
Design/methodology/approach
The authors used a flexible pattern matching approach to ground the inductive findings in extant theory. The authors conducted 21 semi-structured interviews with managers from startups in the global electric vehicle industry.
Findings
The authors developed a framework, showing two factors, determinants and tactics, that play a key role in VPI connected by a continuous feedback loop. Directed by the determinants of cognitive antecedents, development drivers and realization capabilities, aspiring disruptors determine the scope, focus and priorities of various configuration and support tactics to enable and secure the success of their value proposition.
Originality/value
The authors contribute to theory by showing how cognitive antecedents, development drivers and capabilities determine VPI tactics to disrupt existing market incumbents, furthering the understanding of configuration tactics. The results have important implications for disruptive innovation theory, and entrepreneurship research and practice, as they offer an explanatory framework to analyze strategies of aspiring disruptors who increase the attractiveness of sustainable technologies, thereby accelerating their diffusion.
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Luca A. Breit and Christine K. Volkmann
The developing field of entrepreneurial marketing reflects input from both marketing and entrepreneurship. Since the early 1980s, it has evolved heterogeneously, without a…
Abstract
Purpose
The developing field of entrepreneurial marketing reflects input from both marketing and entrepreneurship. Since the early 1980s, it has evolved heterogeneously, without a coherent theory, leading to complex scholarly views. Therefore, this literature review aims to shed light on the recent developments, reveal various research perspectives related to entrepreneurial marketing and derive future research avenues.
Design/methodology/approach
To account for recent scientific contributions and establish a more transparent view of divergent insights, the systematic literature review reported herein covers 207 peer-reviewed journal articles published after the “Charleston Summit” over 12 years (2010–2021) and details their contributions based on descriptive and inductive thematic analysis.
Findings
First, a descriptive analysis illustrates recent scientific developments indicating that entrepreneurial marketing is a vibrant research field with a continuous increase in publications worldwide and a wide range of research methods applied. Second, the thematic analysis suggests a three-part classification into entrepreneur, business and market perspectives. The authors present the most frequent themes and subthemes within this literature domain, as well as offering a critical assessment of the field that reveals key directions for expanding existing research.
Originality/value
To the best of the authors’ knowledge, this study is the first comprehensive review systematically examining entrepreneurial marketing literature while conducting an in-depth thematic analysis. It enhances current knowledge of the field by extending previous narrative and bibliographic reviews and discussing research directions. Aside from specific research questions, an alternative way to narrow down the multiple research objects is elaborated by critically debating the perspectives.
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The purpose of this paper is to identify and describe the influence of the knowledge base (KB) of the company on driving forces of innovation processes in knowledge-intensive…
Abstract
Purpose
The purpose of this paper is to identify and describe the influence of the knowledge base (KB) of the company on driving forces of innovation processes in knowledge-intensive services (KIS) and to compare the level of innovativeness of the final services.
Design/methodology/approach
The paper investigates through qualitative research 11 KIS organisations with different KB.
Findings
The research results identified and described the influence of the KB on driving forces of innovations processes and its results in companies with four newly identified KBs (analytical, synthetic, symbolic and compliance).
Research limitations/implications
Further research, based on a larger number of companies, is needed to confirm the results of this research and to complement the effect of the KB on driving forces of innovation.
Practical implications
This research can help organisations understand how to develop strategic plans and new ideas for innovative services depending on the KB of the organisation.
Social implications
The description of successful innovation processes and results in several leading companies presented in the study may help other companies in identifying knowledge-integration practices to improve performance and innovation processes that support multiplicity, productivity and creativity.
Originality/value
The study systemised the sources of new ideas for innovation in companies with different KB, several driving forces of innovation were identified and how these forces are affected by each KB; lastly, innovation results were compared in companies with different KB.
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Bharti Kumari, Jaspreet Kaur and Sanjeev Swami
A crucial contemporary policy question for financial service organizations of being resilient across the globe calls for rethinking and renovating by adopting and adapting to the…
Abstract
Purpose
A crucial contemporary policy question for financial service organizations of being resilient across the globe calls for rethinking and renovating by adopting and adapting to the technologies of artificial intelligence (AI). The purpose of this study is to propose a policy framework for adoption of AI in the finance sector by exploring the driving factors through systems approach.
Design/methodology/approach
Based on literature review and discussions with experts from both industry and academia, nine enablers were shortlisted, which were used in the questionnaire survey to determine ranks of enablers. Further, the study developed the interpretive structural model (ISM) with the help of experts.
Findings
The ISM digraph developed with the help of the experts, resulted in the enablers like anticipated profitability, contactless solutions, credit risk management and software vendor support as dependent factors and stood at the top of the ISM. On the other hand, factors like availability of the data, technical infrastructure and funds are the most driving factors, which lie on the bottom of the ISM.
Research limitations/implications
The study provides implications and policy recommendations for the practicing managers and government agencies approaching the digital transformation towards the adoption of AI in the finance ecosystem.
Originality/value
The paper uses the systems approach for the development of the ISM of the enabling factors for the adoption of AI technology. On the basis of the results, the study proposes a policy framework to accelerate the functioning of the finance ecosystem with AI technology.
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This study aims to examine the determinants that influence housing prices in Dammam metropolitan area (DMA), Saudi Arabia, by using the analytic hierarchy process (AHP) model. The…
Abstract
Purpose
This study aims to examine the determinants that influence housing prices in Dammam metropolitan area (DMA), Saudi Arabia, by using the analytic hierarchy process (AHP) model. The study considers determinants such as building age (BLD AG), building size (BLD SZ), building condition (BLD CN), access to parking (ACC PK), proximity to transport infrastructure (PRX TRS), proximity to green areas (PRX GA) and proximity to amenities (PRX AM).
Design/methodology/approach
The AHP decision model was used to assess the determinants of housing prices in DMA, using a pair-wise comparison matrix to determine the influence of the investigated factors on housing prices.
Findings
The study’s results revealed that building size (BLD SZ) was the most critical determinant affecting housing prices in DMA, with a weight of 0.32, trailed by proximity to transport infrastructure (PRX TRS), with a weight of 0.24 as the second most influential housing price determinant in DMA. The third most important determinant was proximity to amenities (PRX AM), with a weight of 0.18.
Originality/value
This study addresses a research gap by using the AHP model to assess the spatial determinants of housing prices in DMA, Saudi Arabia. Few studies have used this model in examining housing price factors, particularly in the context of Saudi Arabia. Consequently, the findings of this study provide unique insights for policymakers, housing developers and other stakeholders in understanding the importance of building size, proximity to transport infrastructure and proximity to amenities in influencing housing prices in DMA. By considering these determinants, stakeholders can make informed decisions to improve housing quality and prices in the region.
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Michelle McClelland, Sara Grobbelaar and Natasha Sacks
This paper aims to explore the growth of the South African additive manufacturing (AM) industry over the past 31 years through the lens of the innovation system (IS) perspective…
Abstract
Purpose
This paper aims to explore the growth of the South African additive manufacturing (AM) industry over the past 31 years through the lens of the innovation system (IS) perspective, examining the actor dynamics and mechanisms that facilitated or hindered the industry’s development.
Design/methodology/approach
The study used a case study research approach, analysing semi-structured interviews with eight South African AM experts and documentary evidence. The IS framework and the realist evaluation perspective were used, using a context-intervention-mechanism-outcome (CIMO)-based event history analysis (EHA) framework to explore the actor dynamics and mechanisms of the case study.
Findings
The study used a case study research approach, analysing semi-structured interviews with eight South African AM experts and documentary evidence. The IS framework and the realist evaluation perspective were used, using a CIMO-based EHA framework to explore the actor dynamics and mechanisms of the case study.
Originality/value
This paper contributes to the South African AM industry literature by providing an overview of the industry events over the past three decades and analysing the industry through the IS framework. The study is among the first to analyse the development of the South African AM industry, presenting innovation scholars and managers with valuable decision-making support by providing insights into the innovation activities performed during each stage of the industry’s development, who performed them, the sequence in which they were performed and the outcomes they delivered.
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