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1 – 10 of over 12000Runping Guo, Li Cai and Weiyong Zhang
Research on new internet venture growth is lacking. The purpose of this paper is to address the gap by developing and testing a theoretical model that links venturing principles…
Abstract
Purpose
Research on new internet venture growth is lacking. The purpose of this paper is to address the gap by developing and testing a theoretical model that links venturing principles (effectuation or causation) to new internet venture growth through resource bundling (pioneering or stabilizing).
Design/methodology/approach
The proposed theoretical model is developed upon the entrepreneurship literature and resource-based view. Empirical data are collected from entrepreneurs and top executives in China via a survey. The Baron and Kenny (1986) mediation model assessment procedure is used to analyze the data.
Findings
Both effectuation and causation are positively associated with new internet venture growth. Effectuation leads to pioneering resource bundling, which in turn contributes to new internet venture growth. Causation also contributes to new internet venture growth, but through stabilizing resource bundling.
Research limitations/implications
This research helps link the theory of effectuation to resource-based theory by revealing resource bundling as the mediator between effectuation, causation, and new venture growth. Moreover, the authors provide empirical evidence of the importance of resource bundling with entrepreneurial strategic decision logics to the growth of new internet ventures in transitional economies.
Practical implications
Entrepreneurs and managers of new internet ventures should leverage both venturing principles to support growth. Internet ventures generally are creative and innovative in nature, hence favor effectuation. But it will be unwise to ignore causation, which also leads to growth.
Originality/value
This is an original empirical research guided by theories. It is a novel insight to identify the mediating effect of resource bundling. This study likely will inspire more scholarly research on the subject. It also lays a solid foundation for further inquiry such as complementarities between effectuation and causation.
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Frida Thomas Pacho and Hellena Mushi
This study aims to examine the effect of the effectuation set of means on new venture performance in the context of Tanzania’s emerging economy. To determine how new ventures…
Abstract
Purpose
This study aims to examine the effect of the effectuation set of means on new venture performance in the context of Tanzania’s emerging economy. To determine how new ventures, benefit from the effectuation set of means experienced entrepreneurs possess, this study examines the role of the flexibility principle of effectuation as a key mediator.
Design/methodology/approach
The research is quantitative in nature, and a survey questionnaire was used to get data from five cities of Tanzania. In total, 350 samples obtained for analysis. The hierarchical regression and structural equation modeling were used for testing the hypotheses.
Findings
The effectuation set of means is affirmed to have a positive effect on new venture performance. The flexibility principle plays a partial mediating role in the relationship between the effectuation set of means and new venture performance.
Originality/value
This empirical evidence contributes to the progress of the theory of effectuation and also provides managerial guidelines for entrepreneurs who operate their new ventures and face uncertain business environments.
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Yi-Shun Wang, Timmy H. Tseng, Yu-Min Wang and Chun-Wei Chu
Understanding people’s intentions to be an internet entrepreneur is an important issue for educators, academics and practitioners. The purpose of this paper is to develop and…
Abstract
Purpose
Understanding people’s intentions to be an internet entrepreneur is an important issue for educators, academics and practitioners. The purpose of this paper is to develop and validate a scale to measure internet entrepreneurial self-efficacy.
Design/methodology/approach
Based on an analysis of 356 responses, a scale of internet entrepreneurial self-efficacy is validated in accordance with established scale development procedures.
Findings
The internet entrepreneurial self-efficacy scale has 16 items under three factors (i.e. leadership, technology utilization and internet marketing and e-commerce). The scale demonstrated adequate convergent validity, discriminant validity and criterion-related validity. Nomological validity was established by the positive correlation between the scale and, respectively, internet entrepreneurship knowledge and entrepreneurial intention.
Originality/value
This study is a pioneering effort to develop and validate a scale to measure internet entrepreneurial self-efficacy. The results of this study are helpful to researchers in building internet entrepreneurship theories and to educators in assessing and promoting individuals’ internet entrepreneurial self-efficacy and behavior.
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Ruslan Prijadi, Adhi Setyo Santoso, Tengku Ezni Balqiah, Hongjoo Jung, Putri Mega Desiana and Permata Wulandari
This research investigates the nature of regulatory-focused effectuation (as the basis of entrepreneurial behavior) in absorptive capacity development for open innovation…
Abstract
Purpose
This research investigates the nature of regulatory-focused effectuation (as the basis of entrepreneurial behavior) in absorptive capacity development for open innovation implementation, the role of crowds or communities management practices in the effectuation-based open innovation process, and open innovation performance as the output of the open innovation process in digital multi-sided platform (MSP) startups context.
Design/methodology/approach
In order to verify the hypothesis, the researcher conducts a quantitative study that is based on a self-administered questionnaire and employs the PLS-SEM approach. The sample comprises of 70 Indonesian digital MSP businesses that have been operational for at least three years and have used open innovation approaches with their audiences, communities or complementors.
Findings
The research findings imply that there is a connection between promotion-focused effectuation and the open innovation process. This connection is particularly strong when it comes to the incorporation of absorptive capacity and crowds or communities management practices. On the other hand, prevention-focused effectuation shows insignificant effect toward open innovation process in digital MSP startups context.
Research limitations/implications
The research findings imply that with limited resources and experiences, young entrepreneurs can still implement open innovation strategy for their digital MSP platform through effectuation principles that leverage the external resources from digital platform ecosystem members.
Practical implications
In digital MSP startups context that perform promotion-based effectuation principles, innovation performance can be achieved by analyzing new insight, transforming the existing activities with the new insight, creating new offering afterward, as well as strengthening crowds or communities management practices through co-creation activities with platform ecosystem members that may lead into new business model.
Originality/value
The originality of this work is to make a contribution to the literature on strategic entrepreneurship by describing the phenomena of the paradox of resource-based theory; adopting open innovation strategy under constrained initial resources and capabilities scenario.
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Neil Towers, Adhi Setyo Santoso, Nadine Sulkowski and John Jameson
The aim of this paper is to conceptualise entrepreneurial capacity-building as an integrated approach within the international higher education sector. Whilst…
Abstract
Purpose
The aim of this paper is to conceptualise entrepreneurial capacity-building as an integrated approach within the international higher education sector. Whilst university–enterprise collaboration is recognised as being essential to promoting graduate employability and entrepreneurship, the lack of an integrated approach towards embedding entrepreneurship education and entrepreneurial capacity-building with an entrepreneurial skill and mind-set prevails in the higher education sector. With reference to the retail sector, increasingly competitive job markets and the need for entrepreneurial capacity-building place growing pressures on universities to nurture career-ready graduates with entrepreneurial acumen.
Design/methodology/approach
The theoretical paper presents a rationale for embedding entrepreneurship education into university curricula and for promoting university–business collaboration. Secondly, it reviews the extent to which entrepreneurial capacity-building is institutionally embedded to foster graduate entrepreneurship, university–business collaboration and business incubation within one strategic framework. Finally, the paper proposes five propositions within a tripartite approach that can foster graduate entrepreneurs with entrepreneurial skills and mind-set, useful for existing enterprises and start-ups. The implications for these propositions are discussed.
Findings
The authors propose five propositions with a tripartite approach that can foster graduate entrepreneurs with entrepreneurial skill and mind-set, skills for creating enterprises and university–enterprise collaboration within one strategic framework.
Practical implications
Increasingly competitive job markets and the need for entrepreneurial capacity-building place growing pressures on universities to nurture career-ready graduates with entrepreneurial acumen in social science (e.g. retail, business management and accountancy) and science (e.g. pharmacy, architecture and engineering) programmes centred within the tripartite approach.
Originality/value
Whilst university–enterprise collaboration is recognised as being essential to promoting graduate employability and entrepreneurship, the tripartite integrated approach embeds entrepreneurship education and entrepreneurial capacity-building with an entrepreneurial skillset and mind-set in the international higher education sector.
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Jiawen Chen, Linlin Liu and Qingxin Chen
Empirical data on the impacts of entrepreneurial effectuation on firm performance are scattered and controversial. This study conducts a meta-analysis to obtain evidence on…
Abstract
Purpose
Empirical data on the impacts of entrepreneurial effectuation on firm performance are scattered and controversial. This study conducts a meta-analysis to obtain evidence on whether and under what conditions effectuation is valuable. A contextual framework is proposed that highlights the boundary condition of the performance impact of effectuation.
Design/methodology/approach
Both the traditional approach of meta-analysis and advanced techniques of Bayesian meta-analytic tests are used to combine numerous studies from varied research contexts.
Findings
Meta-analytic results show that effectuation generally has a positive impact on firm performance, and is context-dependent, leading to stronger performance for older firms and firms in high-tech industries and emerging countries.
Originality/value
The findings provide important implications for entrepreneurs who are considering applying effectuation. This study highlights that effectuation is context-dependent and the performance implications of effectuation are contingent on contextual factors at organizational, industrial and institutional levels. This study extends the contextual understanding of the effectuation–performance relationship.
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Luca A. Breit and Christine K. Volkmann
This study aims to enrich the field of entrepreneurial marketing (EM) by examining decision-making processes in the unique context of start-up ventures. To do so, it extends…
Abstract
Purpose
This study aims to enrich the field of entrepreneurial marketing (EM) by examining decision-making processes in the unique context of start-up ventures. To do so, it extends research on the distinct EM dimensions to the behavioral context by revealing how causation and effectuation principles shape entrepreneurs’ actions.
Design/methodology/approach
The study investigates EM behavior through 12 semi-structured interviews with 10 start-up founders and two founder associates in Germany. Use of established frameworks of the EM dimensions and causation/effectuation principles paves the way for an in-depth analysis. This methodology uncovers a distinct pattern of decision-making behaviors characterizing various activities within start-ups.
Findings
The findings show that causal logic prevails in start-ups’ EM, and effectual reasoning serves a complementary role. On the dimensional level, the findings reveal a predominant goal-driven focus on customer intensity and value-creation processes. Predictive logic guides opportunity focus, proactiveness and risk management, with nonpredictive behaviors providing adaptability. The principle of affordable loss is also evident in risk management. Finally, start-ups exhibit a blend of causal and effectual logic in innovativeness and resource-leveraging.
Originality/value
To the best of the authors’ knowledge, this study is the first to illuminate the interplay of behavioral logics in start-up firms’ EM by exploring the nuanced principles underpinning the decision-making processes of entrepreneurs. In doing so, it advances understanding of the marketing–entrepreneurship interface and enriches decision-making literature.
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Innovation strategy is critical for firms to achieve success in the market. However, relatively little is known about what factors promote the development of innovation strategy…
Abstract
Purpose
Innovation strategy is critical for firms to achieve success in the market. However, relatively little is known about what factors promote the development of innovation strategy in high-tech new ventures. The purpose of this paper is to address this gap by developing and examining the theoretical model that links effectuation to innovation strategy through opportunity shaping in high-tech new ventures.
Design/methodology/approach
The proposed theoretical model is developed by integrating the effectuation theory, innovation strategy literature and opportunity literature. Empirical data were collected from 212 entrepreneurs and top executives in Chinese high-tech new ventures through a survey. Baron and Kenny’s (1986) mediation and moderation model assessment procedures are used to analyze the data.
Findings
The empirical results indicate that effectuation has a positive effect on innovation strategy and opportunity shaping. Opportunity shaping has a positive effect on innovation strategy, and its effect is positively moderated by competitive intensity. The author also finds that opportunity shaping plays a fully mediating role in the relationship between effectuation and innovation strategy.
Originality/value
These findings enrich innovation strategy research and advance the effectuation theory by providing empirical evidence of the impact of effectuation on innovation strategy in high-tech new ventures. The findings also contribute to a growing stream of research on opportunity and integrating opportunity shaping into a more complete framework of innovation. Moreover, this research provides deeper insight into the missing links between effectuation and innovation strategy in high-tech new ventures by uncovering the mediating role of opportunity shaping.
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Advancement and disruptions in technologies have attracted cyberentrepreneurs globally, but what factors influence their intentions is an area that requires in-depth…
Abstract
Purpose
Advancement and disruptions in technologies have attracted cyberentrepreneurs globally, but what factors influence their intentions is an area that requires in-depth investigation. In order to dig down the phenomenon of cyberentrepreneurial intentions (CEIs), this study entails investigation of both direct and indirect effects (through cyberentrepreneurial self-efficacy; CESE) of the dark personality traits (e.g. Machiavellianism, narcissism and psychopathy). It also aims to investigate the moderating role of positive thinking (PT) on the association between CESE and CEIs.
Design/methodology/approach
Data are collected, using personally administrated questionnaires, from students enrolled in business and information technology (IT) programs in large public sector universities in three waves to tackle common method bias. A total of 641 useful responses were considered for analysis purposes.
Findings
The results reveal that not all dark triad dimensions influence CEIs and CESE. Narcissism is the only positive predictor of both the outcome variables (CESE and CEIs). Specifically, psychopathy positively influences CEIs, while its effects on CESE are negative; whereas Machiavellianism does not predict CESE, however, it negatively influences CEIs. In addition, CESE mediates the association between narcissism and CEIs; however, PT strengthens the relationship between CESE and CEIs.
Research limitations/implications
The study collected data from a country with low entrepreneurs; therefore, results may vary for countries with a large number of entrepreneurs. The findings of the study offer both theoretical and practical implications, while it highlights the role of dark personality traits and their link with the CESE and CEIs.
Originality/value
There is a dearth of literature on CEIs, which this study extends through the dark personality traits (Machiavellianism, narcissism and psychopathy). This study also explored the mediating mechanism of CESE and the conditional role of PT between dark personality traits and CEIs.
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Abstract
Purpose
This paper aims to explore the mediating role of organizational entrepreneurial capability in the link between entrepreneurs’ effectuation and new venture performance, and whether entrepreneurs’ passion positively moderates this relationship in the Chinese emerging economy.
Design/methodology/approach
This study collected survey data from 140 Chinese new ventures. Following an empirical design, hierarchical regression analysis and bootstrapping analysis were applied to examine six hypotheses.
Findings
Results reveal that organizational entrepreneurial capability plays a positively mediating role in the association between entrepreneurs’ effectuation and new venture performance. Moreover, the whole mediation model is positively moderated by entrepreneurs’ passion, not only the association but also between entrepreneurs’ effectuation and organizational entrepreneurial capability.
Research limitations/implications
The study is limited to the static relationships between key variables using the data obtained at one point in an emerging economy, which cannot investigate the dynamic evolution between variables. More longitudinal designs or cases to track the dynamic association should be considered.
Practical implications
The findings provide useful suggestions for entrepreneurs to enhance their effectual logic and entrepreneurs’ passion to better perceive and exploit opportunities and further improve new venture performance. The results also provide guidance for other groups, such as angel investors and policymakers, regarding how to use effectuation logic as an evaluation criterion to judge whether a new venture or program has investment potential.
Originality/value
These findings enrich the effectuation theory by providing the empirical evidence of the effect of entrepreneurs’ effectuation on new venture performance in an emerging economy. They also provide deeper insights into opportunity research by uncovering the mediating role of organizational entrepreneurial capability in the relationship between entrepreneurs’ effectuation and new venture performance.
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