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Article
Publication date: 17 August 2012

Wangbin Hu and Yulii Zhang

The gap between the high failure rate and the tremendous growth difference of new ventures has attracted scholars' widespread attention and resulted in the rich research outcomes…

Abstract

Purpose

The gap between the high failure rate and the tremendous growth difference of new ventures has attracted scholars' widespread attention and resulted in the rich research outcomes of entrepreneurial orientation (EO). The purpose of this paper is to present a new construct and build up the conception model “entrepreneurial orientation‐new venture capabilitynew venture's performance”.

Design/methodology/approach

This paper, on the basis of evolution economics as well as strategic and organizational theory, adopts the layered multi‐regression method and structure equation model to validate the theory hypothesis about the conception model.

Findings

Through 150 valid samples, this paper validates the dimensions of new venture's EO and new venture capability of China's context, moderating effect of environmental hostility and environmental, and mediating effect of new venture capability. The findings indicate that EO does significantly positively affect new venture performance, but the indirect impact of new venture capability is stronger.

Research limitations/implications

This paper has a few limitations which need to be improved in future study, including developing the time sequence study, expanding the research sample from Tianjin to other Chinese regions, and so on.

Originality/value

The paper's theoretical contributions are as follows: first of all, it points out the construct dimension of EO in the Chinese context; second, it introduces environment factor into Chinese new ventures' EO study; and finally, it constructs an integrated analysis concept based on the capability perspective – the new venture capability, abstracting its dimension and testing its mediator between EO and performance.

Details

Nankai Business Review International, vol. 3 no. 3
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 28 February 2024

Misbah Faiz, Naukhez Sarwar, Adeel Tariq and Mumtaz Ali Memon

Research has shown that business model innovation can facilitate most ventures to innovate and remain competitive, yet there has been limited work on how digital leadership…

Abstract

Purpose

Research has shown that business model innovation can facilitate most ventures to innovate and remain competitive, yet there has been limited work on how digital leadership capabilities influence business model innovation. Building on the dynamic capabilities view, we address this gap by linking digital leadership capabilities with business model innovation via managerial decision-making through provision of grants received by new ventures.

Design/methodology/approach

The study is cross-sectional research. Data have been collected utilizing purposive sampling from 313 founding members of new ventures in high-velocity markets, i.e. from Pakistan. SPSS has been used to conduct the moderated mediation analysis.

Findings

Digital leadership capabilities foster the business model innovation of the new ventures because they enable new ventures to capitalize on digital technologies and create new ways of generating value for the customers and themselves. Moreover, managerial decision-making mediates digital leadership capabilities and business model innovation relationship, whereas, grants moderate the indirect positive effect of digital leadership capabilities on business model innovation via managerial decision-making. The study generates initial evidence on the impact of digital leadership capabilities on business model innovation via managerial decision-making for new ventures. We advance knowledge on new ventures’ business model innovation by deep-diving into dynamic capabilities view and emphasizing digital leadership capabilities as a significant driver for business model innovation.

Originality/value

With the help of dynamic capabilities theory, this study analyzes how new ventures make use of digital leadership capabilities to promote business model innovation.

Details

Journal of Small Business and Enterprise Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 27 January 2023

Miaomiao Yin and Jiying Li

Based on the organizational learning theory, this study regards market orientation as market-based learning and seeks to advance insight into how proactive and responsive market…

Abstract

Purpose

Based on the organizational learning theory, this study regards market orientation as market-based learning and seeks to advance insight into how proactive and responsive market orientations affect two kinds of open innovation strategies, sourcing and selling. A firm’s information and communication technology (ICT) capability is considered an essential moderator in these relationships.

Design/methodology/approach

This study adopted a quantitative design and used the questionnaire survey method to collect data. The authors finally collected data on samples in China. Multiple regression analysis was used to test the hypotheses.

Findings

The results show that proactive and responsive market orientations act as antecedents of open innovation, showing linear and curvilinear relationships between them. Specifically, responsive market orientation positively affects selling, and proactive market orientation positively affects sourcing. Responsive market orientation has an inverted U-shaped relationship with sourcing, and proactive market orientation has a U-shaped relationship with selling. In addition, ICT capability strengthens the positive effects of market orientation on open innovation and weakens the negative effects.

Originality/value

Drawing on organizational learning theory, this study provides a novel perspective to explain the complex mechanism between market orientation and open innovation. This study also explores the moderating role of ICT capability in this process, which advances research on how to select open innovation strategies under different conditions.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 14 October 2013

Jifeng Mu

Prior research suggests that insufficient networking capability of a firm (i.e. the capability to establish, maintain, and leverage ties, contacts and connections) poses a…

1191

Abstract

Purpose

Prior research suggests that insufficient networking capability of a firm (i.e. the capability to establish, maintain, and leverage ties, contacts and connections) poses a potential barrier to its growth, the causal logic of networking capability and firm performance has not been fully articulated and a clear link between network resources and networking capability, however, remains to be demonstrated. The paper aims to discuss these issues.

Design/methodology/approach

Conceptually and theoretically, the paper emphasizes the importance of networking capability in network resources mobilization and deployment, innovation and rent-seeking and argues that the firm should build strong networking capability to creatively and artfully manage its networks to sustain its vitality.

Findings

The paper builds a theoretical model relating networking capability, network resources, open innovation, and resulting new venture success and economic rents. The paper argues that new ventures should build and leverage networking capability to manage network relationships and resources to innovate, develop and create value, and appropriate various types of economic rent.

Research limitations/implications

The framework generally promoted building networking capability as a means of accessing to a broader range of network resources and opportunities than a new venture is able to maintain internally for innovation and growth, the benefits may not be so clear-cut. A useful future research direction would be to determine empirically the relationship between networking capability and new ventures' survival and growth, the extent to which new ventures are able to derive economic rents from exploiting networking capability, and how this is related to the degrees of competitive success they attain.

Practical implications

The research framework suggests that networking capability can help new ventures to take advantage of opportunities discovered and serve unexploited markets. The study implies that networking capability can be a powerful weapon for new ventures to implement open innovation strategy to build solid growth businesses and to gain sustainable competitive advantage.

Originality/value

The paper develops a parsimonious model that links new venture survival and success with networking capability, network resources and open innovation. Also, this model shows why and how new ventures can leverage networking capability to generate and appropriate economic rent simultaneously.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 15 no. 2
Type: Research Article
ISSN: 1471-5201

Keywords

Article
Publication date: 13 August 2019

Lihui Xia, Biao Luo and Ying Sun

This paper aims to explore the mediating role of organizational entrepreneurial capability in the link between entrepreneurs’ effectuation and new venture performance, and whether…

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.

Details

Kybernetes, vol. 49 no. 5
Type: Research Article
ISSN: 0368-492X

Keywords

Book part
Publication date: 23 September 2005

Stephanie A. Fernhaber and Patricia P. McDougall

International new ventures have been argued to seek foreign markets from inception in response to the external environment and/or motivations internal to the firm. For example, a…

Abstract

International new ventures have been argued to seek foreign markets from inception in response to the external environment and/or motivations internal to the firm. For example, a new venture that exists in an industry that is more globally integrated is more likely to have a need to internationalize in order to remain competitive (Shrader, Oviatt, & McDougall, 2000). Similarly, those new ventures that have limited domestic growth due to the size of their home country may look elsewhere in order to gain a sufficient level of sales to survive (Zahra & George, 2002). Some of the many firm-specific motivations to internationalize might include the desire to fully exploit a unique product (Burgel & Murray, 2000; Oviatt & McDougall, 1994, 1995), capitalize on the learning advantage of newness (Autio, Sapienza, & Almeida, 2000) or take advantage of networking opportunities (Reuber & Fischer, 1997).

Details

International Entrepreneurship
Type: Book
ISBN: 978-0-76231-227-6

Article
Publication date: 19 October 2022

Robert J. Pidduck, Thomas K. Kelemen and Mark C. Bolino

The authors advance a model theorizing how new ventures elicit citizenship behaviors to cultivate dynamic capabilities that help bolster survival in their nascent years of…

Abstract

Purpose

The authors advance a model theorizing how new ventures elicit citizenship behaviors to cultivate dynamic capabilities that help bolster survival in their nascent years of operations—a characteristically resource-scarce and turbulent context.

Design/methodology/approach

Drawing on and integrating research on citizenship behaviors with dynamic capabilities, the authors develop a theory that new ventures that are better able to evoke a combination of affiliative and challenging citizenship behaviors from their wider entrepreneurial team (i.e. internal, and external stakeholders) are more adept at mitigating the liabilities of smallness and newness. As these behaviors are spontaneous and not explicitly remunerated, new ventures become stronger at utilizing their limited resource base for remaining lean and agile. Further, key boundary conditions are theorized that the sociocultural norms the venture is embedded within serve to heighten/attenuate the degree to which entrepreneurs can effectively cultivate dynamic capabilities from their team's “extra mile” behaviors.

Findings

The propositions extend a rich body of research on citizenship behaviors into the new venture domain. As all new ventures face the challenge of overcoming liabilities of newness, models that help understand why some are more adept at overcoming this and why others fail, hold substantive practical utility.

Originality/value

This research is the first to unpack how citizenship behaviors manifest among an extended range of stakeholders traditionally overlooked in new venture teams research and the mechanism for how this links to venture survival.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 7
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 20 December 2022

Lucas Liang Wang, Qing Dai and Yan Gao

New venture status is the most prominent feature of entrepreneurial startups, but its performance implications have remained under-studied. This study aims to bridge this…

Abstract

Purpose

New venture status is the most prominent feature of entrepreneurial startups, but its performance implications have remained under-studied. This study aims to bridge this knowledge void and offer precise guidelines for startup managers in boosting performance.

Design/methodology/approach

The study develops and tests a multi-perspective model on the linkage between new venture status and firm performance by integrating I/O economics, resource-based view and dynamic capability perspective. The arguments from the first two perspectives point to an adverse effect of new venture status, which is contingent, respectively, on business differentiation and resource endowments. The third perspective grounds a positive relationship between new venture status and performance, which is more pronounced for firms with weaker dynamic capabilities.

Findings

Quantitative evidence from a sample of new and established firms in China shows that the direct effect of new venture status is negative but insignificant. Neither business differentiation nor dynamic capabilities moderate the relationship. Low resource endowments, however, reinforce the negative influence of new venture status. New venture status, thus, shapes firm performance through resource scarcity from resource-based view rather than competitive vulnerability from I/O economics or strategic flexibility from dynamic capability perspective.

Originality/value

Newness and new venture performance have both been extensively examined in literature. But the relationship between them has remained largely omitted. The multi-perspective model and the findings in this study help clarify the confusion as to whether newness is good or bad in the context of an emerging market and reveals the subtle mechanism the effect of newness unfolds.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 29 no. 3
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 12 December 2023

Livingstone Divine Caesar, Mark Eshun, Frank Mawuyome Kwame Gamadey and Akinyele Okeremi

High failure rates characterise the experience of new entrepreneurial ventures in Nigeria and other emerging economies. Reliance on strategic tools such as entrepreneurial…

Abstract

Purpose

High failure rates characterise the experience of new entrepreneurial ventures in Nigeria and other emerging economies. Reliance on strategic tools such as entrepreneurial orientation (EO) is critical to the growth and survival of new ventures. This empirical study aims to deepen the understanding of the relationship between EO and performance of new venture logistics firms in Nigeria. It further explores the contingent effects of social capital and marketing capabilities on the hypothesised direct relationships from a transport industry perspective.

Design/methodology/approach

Managers of 650 new venture logistics service providers in selected Nigerian cities were Web-surveyed. Exploratory and confirmatory factor analyses were performed. Regression analysis was further performed. Common method variance and other validity checks were assessed.

Findings

The 469 valid responses showed a positive relationship between EO and new venture performance (NVP). Social capital and marketing capabilities positively moderate the direct relationship between EO and NVP. Managerial implications suggest that context-specific dynamics must be considered when making strategic EO decisions to aid firm growth and survival.

Originality/value

This study directly responds to the contingency approach recommendation of past studies (Anwar et al., 2022; Van Stel et al., 2021; Covin and Wales, 2019) using the logistics service and emerging economy context. It also introduces social capital and marketing capabilities as moderators.

Details

Journal of Entrepreneurship in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 1 February 2021

Helen McGrath and Thomas O'Toole

The purpose of this paper is to identify the early stage network engagement strategies that new ventures use to gain traction in interaction in the development of network…

Abstract

Purpose

The purpose of this paper is to identify the early stage network engagement strategies that new ventures use to gain traction in interaction in the development of network capability.

Design/methodology/approach

Using 24 new ventures in the micro-brewing industry in Ireland, Belgium and the USA as an empirical base, the authors use an inductive case study approach owing to the exploratory nature of the research aim and the lack of prior literature in the area.

Findings

The findings suggest five early stage network engagement process strategies in network capability development: business-to-business network prospecting; co-branding/co-promoting activities; from maker-mindset to adapting; social media platforming; and recognition and activation of network role.

Research limitations/implications

The findings are limited to the micro-brewery sector at one point in time, although in multiple country contexts. Analyzing other sectors and taking a temporal view of strategizing, analyzing the sector at another time point, would show how dynamics in engagement change as the actors acquire new experiences from interaction.

Practical implications

The potential to gain from network resources and the paucity of these resources in new ventures makes early stage engagement strategizing for network capability development an attractive business strategy for new firms. All firms are born within a social network that has economic importance. Identifying the five early stage network engagement strategies can mitigate the challenge for the new venture in moving from the initial social network to collaborating within wider business networks to gain access to resources, technology and customers.

Originality/value

Strategizing in new venture contexts is a relatively new stream of research for the industrial marketing and purchasing group. This paper adds to the growing body of literature that places interaction, relationships and networks at the heart of strategy making and provides important insights for new ventures, which may lead to earlier and greater success for the firms. The authors respond to calls for increased research addressing capability development in a new venture context and for research to take a more interactive perspective on new venture processes.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 9
Type: Research Article
ISSN: 0885-8624

Keywords

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