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The purpose of this paper is to analyze the relationship between organizational performance and the pattern of strategic decisions formalized in the planning of a Brazilian heavy construction company between 2006 and 2014. In this period, the company experienced a recurrent pattern of maintaining strategic decisions, despite the systematic decrease in performance and investments in the formal strategic planning (SP) and monitoring of results. The research focus is on strategic inertia and the influence of social determinants on the relationship between performance and the strategic actions negotiated in formal planning.

This is a single-case study. The exploratory-descriptive research comprises data collection on performance and strategic decisions from the period between 2006 and 2014. The analysis was guided through documentary material and data collected from 16 interviews conducted with members of the middle to top management concerning performance, goals, and strategic initiatives. The interviewees’ statements were used to apprehend the interpreted dimension of SP expressed in the meanings attributed to this process. The analysis adopts a sociological base, and strategic inertia is the underlying phenomenon that guides this analysis.

The results show the interactive effect caused by political, cognitive, discursive, and ceremonial mechanisms obstruct the company’s strategic decisions. This case study illustrates that the conditions for the phenomenon of path dependence were created, reinforcing the strategic inertia observed in the maintenance of a reproduced pattern of strategic initiatives and goals, even though the performance was recurrently unsatisfactory. In this case, strategic inertia showed a complex relationship between the interpreted performance and strategic actions negotiated in formal planning, conditioned by mechanisms of trajectory reinforcement that interfered with the conditions for strategic change.

Strategic inertia demonstrates a complex relationship between the interpreted performance and strategic actions negotiated in formal planning, conditioned by mechanisms of trajectory reinforcement that interfere with the conditions for strategic change. Future research on social mechanisms from the perspective of strategy-as-practice could be developed to capture the tacit components, language, power games, and other relevant categories in the social interaction of strategy development at the organizational level. In addition, future research could focus on investigating the extent to which path dependence is contingent, assuming that it is a temporary and, therefore, reversible process.

This work contributes to the view of SP from the social perspective and shows that the relationship between performance and strategy has biases that can compromise performance. The work highlights implications for maintaining strategic initiative patterns, which shape a path whose function is less associated with its effects on performance and more associated with the commitment to instrumental results, due to the social nature of organizations.

This work deals with social mechanisms that influence strategic decisions. Since organizational performance depends on strategic decisions, the social nature of strategic inertia has causal implications to economic and social impact of organizations.

This work argues in favor of the influence of self-reinforcing mechanisms of path dependence in the relationship between performance and strategic decisions. The results extended the predominantly structural approach of path dependence by considering interpretive aspects related to the political, discursive, cognitive, and ceremonial dimensions of strategic inertia.

Many individuals start a new firm each year, mainly intending to become independent or improve their financial situation. For most of them, the first years of operations mean a substantial investment of time, effort and money with highly insecure outcomes. This study aims to explore how entrepreneurs running new firms perform financially compared with the established ones and how this situation influences their well-being.

A questionnaire survey was completed in 2021 and 2022 by a representative sample of N = 1136 solo self-employed and microentrepreneurs in the Czech Republic, with dependent self-employed excluded. This study used multiple regressions for data analysis.

Early-stage entrepreneurs are less satisfied with their financial situation, have lower disposable income and report more significant financial problems than their established counterparts. The situation is even worse for the subsample of startups. However, this study also finds they do not have lower well-being than established entrepreneurs. While a worse financial situation is generally negatively related to well-being, being a startup founder moderates this link. Startup founders can maintain a good level of well-being even in financial struggles.

The results suggest that policies should focus on reducing the costs related to start-up activities. Further, policy support should not be restricted to new technological firms. Startups from all fields should be eligible to receive support, provided that they meet the milestones of their development. For entrepreneurship education, this study‘s results support action-oriented approaches that help build entrepreneurs’ self-efficacy while making them aware of cognitive biases common in entrepreneurship. This study also underscores that effectuation or lean startup approaches help entrepreneurs develop their startups efficiently and not deprive themselves of resources because of their unjustified overconfidence.

This study contributes to a better understanding of the financial situation and well-being of founders of new firms and, specifically, startups. The personal financial situation of startup founders has been a largely underexplored issue. Compared with other entrepreneurs, this study finds that startup founders are, as individuals, in the worst financial situation. Their well-being remains, however, on a comparable level with that of other entrepreneurs.

The purpose of this paper is to add to the small but growing body of research examining the influence of founder gender on new venture access to venture development programs.

Hypotheses were tested utilizing a sample of 482 nascent technology ventures which applied for admittance into a venture development organization headquartered in the southern region of the United States from March 2004 through February 2016.

Findings suggest that female-founded applicant ventures experience a higher likelihood of acceptance into venture development programs than male-founded applicant ventures. Results further suggest that social attention to gender equality reduces this effect for female-founded applicant ventures. Findings extend the understanding of the gendered nature of high-technology venturing and venture development organizations.

The findings of this study may not generalize to new ventures operating in other contexts (e.g., non-U.S., low-tech, and other venture development programs). Additionally, this study's design and data limitations do not allow for the establishment of causality or address founder motivations to apply for acceptance into venture development programs.

This study adds to empirical findings regarding the influence of founder gender on new venture acceptance into venture development programs by developing and testing competing hypotheses. This study also extends extant research by examining the moderating effect of social attention to gender equality on the hypothesized relationships between founder gender and acceptance into venture development programs.

Unicorn companies, such as Facebook, Uber, and Airbnb, significantly impact our economies. This happens although they had a dramatic initial start – at least in terms of financial performance – that would have let any other “conventional” business close. In other words, Unicorns challenge the start-ups’ problems traditionally associated with early failure (liability of newness). This paper aims to understand what helps Unicorn firms initially survive despite huge losses.

By adopting a behavioral lens, this historical case study article focuses on key strategic decisions regarding the famous social media Unicorn Snapchat from 2011 to 2022. The case combines secondary data and a thematic analysis of Snapchat founders’ and investors’ interviews/comments to identify the behavioral antecedents leading to Snapchat’s honeymoon.

Snapchat network effect triggered cognitive biases of Snapchat founders’ and investors’ decisions, leading them to provide initial assets (i.e. beliefs/goodwill, trust, financial resources and psychological commitment) to the nascent Unicorn. Therefore, the network effect and biases resulted in significant antecedents for Snapchat’s honeymoon.

The authors propose a general, theoretical framework advancing the possible impact of biases on Unicorns’ initial survival. The authors argue that some biases of the Unicorns’ founders and investors can positively support a honeymoon period for these new ventures. This is one of the first case studies drawing on a behavioral approach in general and on biases in particular to investigate the liability of newness in the Unicorns’ context.

This paper aims to address which resources provided by an entrepreneurial ecosystem (EE) are necessary for deep technology entrepreneurship.

The authors used a novel approach known as necessary condition analysis (NCA) to data on EEs and deep-tech startups from 132 countries, collected in a global innovation index and Crunchbase data sets. The NCA makes it possible to identify whether an EEs resource is a necessary condition that enables entrepreneurship.

Necessary conditions are related to political and business environment; education, research and development; general infrastructure; credit; trade; diversification and market size; and knowledge absorption capacity.

The results show that business and political environments are the most necessary conditions to drive deep-tech entrepreneurship.

Policymakers could prioritize conditions that maximize entrepreneurial output levels rather than focusing on less necessary elements.

Some resources require less performance than others. So, policymakers should consider allocating policy efforts to strengthen resources that maximize output levels.

Studies on deep-tech entrepreneurship are scarce. This study provides a bottleneck analysis that can guide the formulation of policies to support deep-tech entrepreneurship, as it allows to identify priority areas for resource allocation.

The purpose of this paper is to review the empirical literature on the relationship between the characteristics of the top management teams (TMTs) and the performance of entrepreneurial firms.

A literature review was carried out on 33 empirical studies related to TMTs and performance through analyzing and summarizing the quantitative studies conducted in this area.

The results of the literature review show that the relationship between TMTs (demographics and heterogeneity) and the performance of entrepreneurial firms is not straightforward and further investigation is still needed in this area.

The author maps the theoretical and empirical research of TMT demographics and heterogeneity in relation to firms’ performance and possible moderators and mediators, which govern the relationship between TMT composition and firms’ performance.

The author presents a detailed future research agenda for the purpose of advancing the theoretical and empirical knowledge on TMT-performance links. The review provides a comprehensive picture of TMT-firms’ performance literature and what should be done to enrich the literature.

This paper takes a structured literature review (SLR) approach to identify gaps in the literature and suggest future research opportunities. It focuses on corporate governance (CG) performed outside the formal board of directors’ structure and examines research of alternative CG of small and medium-sized entities (SMEs).

The authors use the SLR method to search the Scopus database, extracting and synthesising findings relating specifically to SMEs’ CG. These are tabulated and described using bibliometric software.

The authors highlight an absence of tailored theoretical approaches to understanding CG in SMEs, which differs from the governance of larger entities. They also find evidence of alternative governance structures in SME CG.

Further research should embrace management and other theoretical perspectives and expanded methodologies, nuances in understanding offered in contextualised settings and awareness of practical implications to better understand the specific setting of CG in SMEs.

SMEs seek to access the scarce resources and skills external to their formal CG structures. Regulators and resource providers should mobilise facilitation and training for this expansion.

The authors synthesise a large body of literature to extract findings specific to SMEs. A unique contribution is our focus on alternative forms of CG in SMEs. Evidence of alternative boards points to resolutions for human capital shortages in SMEs.

This paper explores how adaptive organizations, companies capable of continuously adapting their organizational model, dynamically solve the universal problems of organizing.

The authors applied grounded theory to data acquired from six interpretative case studies, collected in two rounds of interviews (15 in total), then completing and validating the study’s evidence through triangulation with several secondary data sources.

In adaptive organizations, polyarchies and intrapreneurial employees are essential to shape the division of labour, leading to high levels of autonomy and empowering individuals and teams, while reducing bureaucracy and hierarchy. In terms of the integration of effort, digital solutions are preferred to social proof in the provision of information, while the authors note that incentives are always geared towards developing strong higher-order dynamic capabilities.

This paper has some limitations that could be addressed in future research, including longitudinal studies to analyse the link between the universal problems of organizing and a company's dynamic capabilities.

Adaptive organizations go beyond tech firms in responding to the universal problems of organizing work by making specific use of digital technologies.

The paper studies how companies should organize themselves so that they continuously adapt to an ever-changing competitive environment.

This research aims to theorize how a critical factor, resource access, can paradoxically impact the comprehensiveness of venture location decision processes and the relationship between decision comprehensiveness and new venture performance. To do so, the authors focus on nascent entrepreneurs’ venture location decision processes and introduce resource access as a double-edged sword.

In this conceptual article, the authors draw from the strategic decision-making and resource mobilization literature to theorize about the new venture location decision-making process and its performance implications.

By uncovering the paradox of resource access, the authors propose that high levels of resource access create a paradoxical situation in which nascent entrepreneurs are less likely to use comprehensive decision processes when their benefits are at their greatest.

This work contributes to entrepreneurship research on new venture location and resource mobilization in three important ways. First, the authors advance the literature on nascent entrepreneurs’ location decision-making processes by introducing “location decision comprehensiveness” as a decision process construct and juxtaposing it with resource access to uncover the entrepreneurial decision-making process. Second, the authors develop a more nuanced theorization of the location choices made by nascent entrepreneurs instead of relying on generalized conclusions drawn from well-established corporations’ location decisions. Last, the authors extend the literature on resource mobilization in entrepreneurship by shedding light on the paradoxical aspect of resource access. While previous research has emphasized the favorable effects of resource access on new venture processes and outcomes, the authors contend that it can also negatively impact entrepreneurs’ ability to make effective decisions.

The purpose of this paper is to examine the relationship between an individual's social capital context and entrepreneurship using a multi-level modelling framework.

This paper uses data from 87,007 individual level observations across 428 regions in 37 countries. The data comes from the 2010 and 2016 Life in Transition Surveys. The paper uses a principal component analysis to identify the different dimensions of an individual's social capital context. Subsequently, a multi-level model is employed examining the relationship between the components of an individual's social capital context and entrepreneurship (which is proxied by an individual's attempt to set up a business), whilst controlling for both country and regional effects.

Greater levels of networking, informal connections and tolerance of others have a significant positive relationship with entrepreneurial activity. Trust of institutions and others have a negative relationship with entrepreneurial activity. Regional and country differences are also important for entrepreneurship, demonstrating the importance of the multi-level and social contextual environment for business development.

Firstly, the authors present a broad, but comprehensive social contextual framework incorporating many measures of social capital when examining the importance of social capital for business development. Secondly, the work provides interesting results on the “bright and dark sides of trust” for entrepreneurship, answering calls for improved understandings on the positive and negative relationships between social capital and entrepreneurial activity. Thirdly, the paper extends the burgeoning but limited number of studies that examine the multi-level contextual environment of entrepreneurial activities.