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Article
Publication date: 1 December 2005

Joey Tamer

Presents a detailed overview of the challenges of creating new ventures within established corporations, and offers success strategies for overcoming these challenges. The…

Abstract

Presents a detailed overview of the challenges of creating new ventures within established corporations, and offers success strategies for overcoming these challenges. The author outlines her experience from more than 25 years of consulting to new ventures, independent of and within corporate structures, including many within Fortune 500 companies. Several case studies of successful and unsuccessful ventures are described, including successful ventures that were later closed down by the corporation. Tamer offers explanations for the outcome of each venture. Findings include strategies to ensure the success of a new venture within a corporation: defining capital strategies (including start‐up and exit strategies that create profitable new divisions, and/or create spin‐off companies that bring a return on investment to the corporation); aligning the new venture with corporate goals; maintaining corporate commitment to the new venture; engaging outside experts; and creating strategic alliances inside and outside of the corporation. The strategies presented will help corporations build successful in‐house ventures which can extend the corporation’s market reach, leverage existing assets for increased profitability, or create new companies with a high return on investment. Top management, corporate strategic planners, and heads of newly‐formed divisions will find a blueprint for avoiding classic errors, anticipating obstacles to success, and applying strategies that create profitable new corporate ventures.

Details

Handbook of Business Strategy, vol. 6 no. 1
Type: Research Article
ISSN: 1077-5730

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Book part
Publication date: 15 July 2020

Kun Zhang, Jeffrey J. Reuer and Francisco Morales

Strategy and entrepreneurship scholars have identified many benefits of signaling for new ventures to access resources in financial and other factor markets. However…

Abstract

Strategy and entrepreneurship scholars have identified many benefits of signaling for new ventures to access resources in financial and other factor markets. However, scholars have not studied the extent to which new ventures can employ signals to hire new talent. This chapter investigates inventor mobility across biopharmaceutical new ventures and examines the effects of two signals, venture capitalist (VC) prominence and alliance network prominence. We suggest that VC prominence and alliance network prominence can provide assurances to prospective employees about a venture's resources and prospects, thereby facilitating inventor mobility owing to enhanced labor market efficiency. Empirical evidence from biopharmaceutical startups shows that new ventures can benefit from signals emanating from their ties to VCs and alliance partners and attract inventors to join them. We also find that these signaling effects attenuate as information asymmetry diminishes.

Details

Employee Inter- and Intra-Firm Mobility
Type: Book
ISBN: 978-1-78973-550-5

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Article
Publication date: 17 March 2021

Wenhong Zhao, Wenwei Zhang and Chengli Shu

Social network theory emphasizes that, to acquire needed resources, new ventures should cultivate industrial connections (intra-industry ties and extra-industry ties). In…

Abstract

Purpose

Social network theory emphasizes that, to acquire needed resources, new ventures should cultivate industrial connections (intra-industry ties and extra-industry ties). In the meanwhile human capital theory focuses on entrepreneurs' employment experience, especially with respect to its breadth and depth. This study examines ties and experience to determine whether, in combination, they have positive or negative effects on resource acquisition in new ventures.

Design/methodology/approach

This study tests research hypotheses using questionnaire survey data with a sample of entrepreneurs in new ventures. Multivariate regression analysis is used to analyze the data.

Findings

Combining intra-industry ties and experience breadth or extra-industry ties and experience depth affects resource acquisition positively, whereas combining intra-industry ties and experience depth or extra-industry ties and experience breadth affects resource acquisition negatively.

Research limitations/implications

Conclusions may be constrained by the limited sample size and source. Rather, the impact of the study lies in its identification of the effects of interaction between network ties and entrepreneurs' experience on resource acquisition. Future research can explore the effects of interaction between other dimensions of network ties and a range of entrepreneurs' experience characteristics on resource acquisition.

Practical implications

Entrepreneurs are provided with effective strategies to make use of their ventures' network ties and their personal accumulated experience in the process of obtaining resources.

Originality/value

The findings enrich the entrepreneurship literature by providing a more nuanced understanding of how and when new ventures' industry ties and entrepreneurs' employment experience together influence resource acquisition.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

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Book part
Publication date: 17 August 2017

Malena I. Havenvid and Antonella La Rocca

This chapter explores the issue of an outsider entering an existing business network in an interactive, interdependent and interconnected business world. Developing the new

Abstract

This chapter explores the issue of an outsider entering an existing business network in an interactive, interdependent and interconnected business world. Developing the new venture appears a ‘mission impossible’ as the new venture has no relationship in the relevant network or a tenuous one at best. The critical issue and major difficulty for the new company are to make established business actors perceive that there are good reasons to admit the new venture into the existing business network. The fate of the new venture, its acceptance by at least some other business actors, will largely depend on how the incumbents perceive the new company to affect their existing relational assets which result from past investments. In attempting to become a new node of a business relationship, the ‘management’ of the new venture has to address two issues. First, it has to find some actors interested in relating to the new venture and to engage them in developing the initial business relationships. Second, the new venture has to manage the networking that is combining the initial relationships with each other. The authors identify and discuss six spaces for action for new business ventures related to these two challenges.

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Book part
Publication date: 12 September 2003

Per Davidsson

There is progress in entrepreneurship research. Important works in entrepreneurship increasingly appear in highly respected, mainstream journals (see Busenitz et al., 2003

Abstract

There is progress in entrepreneurship research. Important works in entrepreneurship increasingly appear in highly respected, mainstream journals (see Busenitz et al., 2003; Davidsson, Low & Wright, 2001). There is conceptual development that attracts attention (e.g. Shane & Venkataraman, 2000) and handbooks are compiled, providing the field with more of a common body of knowledge (Acs & Audretsch, 2003a; Shane, 2000a; Westhead & Wright, 2000). Further, there is evidence of methodological improvements (Chandler & Lyon, 2001) and accumulation of meaningful findings on various levels of analysis (Davidsson & Wiklund, 2001). Moreover, due to time lags in publication the reported improvements are likely to be underestimated. This author’s experience as organizer, reviewer and participant in core entrepreneurship conferences on both sides of the Atlantic (e.g. Babson; RENT) suggests that much of the lower end of the quality distribution has either disappeared from the submissions or is screened out in the review process. Much more than used to be the case a few years back we find among the presented papers research that is truly theory-driven; research on the earliest stages of business development, and research that employs methods suitable for causal inference, i.e. experiments and longitudinal designs.

Details

Cognitive Approaches to Entrepreneurship Research
Type: Book
ISBN: 978-1-84950-236-8

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Article
Publication date: 4 April 2016

Runping 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

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.

Details

Internet Research, vol. 26 no. 2
Type: Research Article
ISSN: 1066-2243

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Article
Publication date: 5 March 2018

Lúcia Pato and Aurora Amélia Castro Teixeira

The purpose of this study is to determine whether new rural ventures represent effective rural entrepreneurship or are just entrepreneurial ventures located in rural settings.

Abstract

Purpose

The purpose of this study is to determine whether new rural ventures represent effective rural entrepreneurship or are just entrepreneurial ventures located in rural settings.

Design\methodology\approach

Data were collected from a direct questionnaire involving 408 new ventures headquartered in Portuguese business incubators and science parks, of which 142 are located in rural areas. To analyse data, the authors performed a preliminary and exploratory statistical analysis.

Findings

The authors demonstrate that only a small percentage of ventures operating in rural areas constitute examples of effective “rural entrepreneurship”, with the bulk of them being just enterprises located in rural settings. Rural new ventures tend to be small (in terms of employees and turnover), rely mainly on the internal market and lag behind other new ventures (located in both rural and urban municipalities) in terms of performance.

Research limitations/implications

The study only includes new knowledge-intensive ventures, that is, those headquartered in business incubators and science parks. Therefore, it cannot be generalised to other new ventures located in rural settings.

Originality/value

The extant literature on entrepreneurship has neglected the empirical implications of mixing, confounding and/or merging the concepts of “rural entrepreneurship” and “entrepreneurship activities in rural areas”. In this study, the authors discuss and analyse the empirical boundaries of such concepts and uncover the magnitude of pure “rural entrepreneurship”.

Details

Journal of Place Management and Development, vol. 11 no. 1
Type: Research Article
ISSN: 1753-8335

Keywords

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Article
Publication date: 22 January 2018

Karen Williams Middleton and Pamela Nowell

Effective internal dynamics of new venture teams is seen as a key contributor to venture success. The purpose of this paper is to investigate the ways in which new venture

Abstract

Purpose

Effective internal dynamics of new venture teams is seen as a key contributor to venture success. The purpose of this paper is to investigate the ways in which new venture teams consisting of nascent entrepreneurs initiate trust and control during venture emergence.

Design/methodology/approach

Dimensions of trust and control are developed into an analytical framework applied to documented team norms. Coding detects frequency of trust and control dimensions. Supplementary data triangulate findings and explore follow-on effects in team dynamics and venture emergence.

Findings

Frequency of coded dimensions generates a venture team profile. Teams prime their dynamics through use of trust and/or control language in documented norms. Priming is seen to influence entrepreneurial perseverance during venture emergence, stemming either directly from team dynamics, or indirectly from key shareholder relationships or environmental conditions.

Research limitations/implications

Data are bounded to a specific contextual setting representing incubation and education, where the nascent entrepreneurs are simultaneously students. The complexity of venture emergence means that multiple factors influencing new venture teams may influence trust and control in ways currently unaccounted for.

Practical implications

Exploration of trust and control during venture emergence emphasizes soft-skills critical to entrepreneurial perseverance and venture success. Team norms can be designed to prime toward trust or control, and can be indicative of teams’ sensitivity to external factors, enabling evidence for intervention.

Originality/value

The paper illustrates ways in which trust and control influence team dynamics during venture emergence.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 24 no. 4
Type: Research Article
ISSN: 1355-2554

Keywords

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Article
Publication date: 7 August 2009

Ming‐Huei Chen and Yan‐Jun Yang

Opportunity identification is a driving force in the entrepreneurial process, which is particularly dependent on entrepreneurs' creativity to recognize potential or hidden…

Abstract

Purpose

Opportunity identification is a driving force in the entrepreneurial process, which is particularly dependent on entrepreneurs' creativity to recognize potential or hidden entrepreneurial opportunities. Therefore, the purpose of this paper is to use opportunity recognition and entrepreneurial creativity to cluster typologies of new ventures and to explore their differences on the performance of new ventures.

Design/methodology/approach

In total, 300 new ventures are studied from government‐funded incubators in Taiwan including 54 university incubators, six government incubators, and five non‐profit incubators with a 46 percent response rate. The studied new ventures have been established less than ten years and are not yet IPO. One entrepreneurial member from each new venture is selected to represent his or her company to respond to the questionnaire.

Findings

Results of cluster analysis, using the dimensions of opportunity recognition and entrepreneurial creativity, reveal four types of new ventures: “passive”, “creativity‐driven”, “opportunity‐driven”, and “proactive”. Results also indicate that the “proactive” new ventures show better performance in entrepreneurial satisfaction and innovative capability.

Practical implications

The new venture typologies have the potential to serve as a benchmark for practitioners as well as a guide for policy‐makers with regard to the varying nature of opportunities and creativity needs by different types of firms. Moreover, the performance of different types of new ventures contributes to the theoretical development regarding entrepreneurial processes of opportunity recognition and entrepreneurial creativity, especially as relevant for new ventures and entrepreneurs with varying characteristics.

Originality/value

The typologies of new ventures have received much less attention in the entrepreneurship literature than in other management fields.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 15 no. 5
Type: Research Article
ISSN: 1355-2554

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Article
Publication date: 20 November 2017

John Watson, Michael Stuetzer and Roxanne Zolin

The purpose of this study is to examine the mediating effect of an owner’s growth goal on the relationship between the gender of new venture owners and the growth outcomes…

Abstract

Purpose

The purpose of this study is to examine the mediating effect of an owner’s growth goal on the relationship between the gender of new venture owners and the growth outcomes of their ventures.

Design/methodology/approach

This is a quantitative study using a large, national database and structural equation modeling.

Findings

The findings indicate that the negative relationship between gender and growth outcomes is fully mediated by the growth goals of new venture owners, their available internal resources and the amount of time and money they are able (prepared) to invest in their new venture.

Research limitations/implications

The research implications include the need to better understand the impact of goal setting on new venture performance outcomes.

Practical implications

The government policies (for example, to stimulate firm growth) need to be designed by having a proper understanding of the various motives/goals that entrepreneurs might have when launching a new venture. Similarly, anyone providing advice to individuals involved in establishing a new venture should, before providing that advice, ensure that they have a clear understanding of the individual’s goals.

Social implications

Social implications include a need to better understand the negative impact that lower available human and financial capital can have on the goals set by female new venture owners and the outcomes achieved by those ventures.

Originality/value

This research makes an original contribution to the literature by demonstrating: the impact of gender on human, social and financial capital; the influence of these resources on new venture goals; and, in turn, the influence of goals on new venture performance outcomes.

Details

International Journal of Gender and Entrepreneurship, vol. 9 no. 4
Type: Research Article
ISSN: 1756-6266

Keywords

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