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Book part
Publication date: 21 May 2009

G. Page West and Jennifer N. Bernhardt

Research on strategy in new ventures has increasingly drawn upon resource-based theory, and thus has emphasized intangible factors that confer sustainable competitive…

Abstract

Research on strategy in new ventures has increasingly drawn upon resource-based theory, and thus has emphasized intangible factors that confer sustainable competitive advantage. These include dynamic and combinative capabilities, networks, routines, and knowledge as resources of new ventures. Yet antecedent to every one of these intangible resources is the management of the venture. But research has seldom considered management and the human resources of new ventures as a critical dimension of strategy content. This paper develops such an argument, and explores the performance contribution of human resources as strategy content in a longitudinal study of technology new ventures.

Details

Entrepreneurial Strategic Content
Type: Book
ISBN: 978-1-84855-422-1

Book part
Publication date: 21 May 2009

Charles E. Bamford, Thomas J. Dean and Patricia P. McDougall

While extant entry theory has long prescribed a niche approach for new ventures, a preponderance of empirical research has found that broad strategies may be the key to new

Abstract

While extant entry theory has long prescribed a niche approach for new ventures, a preponderance of empirical research has found that broad strategies may be the key to new venture success. This study examines the difference between entry theory and empirical evidence by considering the moderating impact of initial financial resources on the effectiveness of venture strategy. Examining new, independent firms at the point of inception, we find that initial financial resources moderate the relationship between strategic breadth and performance, implying that the returns to a broad initial strategy increase with the level of initial capital. Contrary to popular niche prescriptions for new ventures, we did not find support for the belief that firms with low initial financial resources should pursue niche strategies and suggest that it may be time to re-examine theory on the nature of the relationship between entry strategies and performance.

Details

Entrepreneurial Strategic Content
Type: Book
ISBN: 978-1-84855-422-1

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…

3298

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.

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

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Article
Publication date: 30 March 2021

Miaomiao Yin and Bingyu Zhou

The purpose of this research is to reveal how to improve the quality of entrepreneurship by exploring the key factor, opportunity development, impacting the innovation…

Abstract

Purpose

The purpose of this research is to reveal how to improve the quality of entrepreneurship by exploring the key factor, opportunity development, impacting the innovation strategy of new ventures. It also introduces political and business ties as moderating variables to reveal the uniqueness of entrepreneurial activities in the Chinese context.

Design/methodology/approach

Empirical data from 215 entrepreneurs and top executives in Chinese new ventures were gathered through a survey and the statistical method used is the regression model.

Findings

The empirical results indicate that: (1) new ventures' opportunity creation positively impacts innovation strategy, while opportunity discovery has a curvilinear (inverted U-shape) impact on innovation strategy; (2) the relationship between opportunity development and innovation strategy is moderated by political and business ties.

Originality/value

This research analyzes and compares the effect of opportunity discovery and opportunity creation on new ventures' innovation strategy. This research further offers an in-depth understanding of the influence mechanism between opportunity development and innovation strategy among Chinese new ventures. Further, the results provide practical guidance for new ventures to develop innovation strategies and for Chinese governments to make entrepreneurial policies.

Details

Cross Cultural & Strategic Management, vol. 28 no. 2
Type: Research Article
ISSN: 2059-5794

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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

Article
Publication date: 21 June 2011

Ioanna Deligianni and Irini Voudouris

The purpose of this paper is to explore both the strategy types and strategic growth trajectories of new ventures and examine the relationship between these trajectories…

1500

Abstract

Purpose

The purpose of this paper is to explore both the strategy types and strategic growth trajectories of new ventures and examine the relationship between these trajectories and new venture performance.

Design/methodology/approach

The paper uses evidence from six case studies of Greek high technology new ventures over a lengthy time frame. The longitudinal research design of the study allowed for the complexities of the growth phenomenon to be captured in an effective and efficient manner.

Findings

Based on an integrative three‐dimensional framework of new venture strategies, four strategy types are identified. At a static level, evidence suggests that the more strategic dimensions are emphasised in a venture strategy, the more balanced the venture's strategic position and thus, the higher its performance. With respect to the venture's dynamic trajectories, among all possible alternatives, it was found that two are the most successful. The first secures growth through focusing first on a specific innovative product/service in the domestic market and then expanding in the global market. The second secures growth through focusing first on a specific innovative product/service in the global market and then expanding the venture product scope.

Research limitations/implications

The findings imply that the product and geographic dimensions of new venture strategies are the main performance differentiators, while the innovativeness dimension is a sine qua non of new ventures growth and performance. Implications for theory, business practice and policy making are discussed.

Originality/value

The paper contributes to knowledge in the area of new venture growth by developing a strategic typology in a catching‐up economy, where little research can be found.

Details

Management Research Review, vol. 34 no. 7
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 1 March 2006

James M. Bloodgood

The purpose of this paper is to investigate how early internationalization and the use of generic strategies by new ventures affect the performance and…

1681

Abstract

Purpose

The purpose of this paper is to investigate how early internationalization and the use of generic strategies by new ventures affect the performance and internationalization efforts of those ventures as they move beyond the period of initiation.

Design/methodology/approach

A total of 37 venture capital backed new ventures within the USA were studied from 1991 to 1999. Annual 10‐K filings were used as sources for financial and management data about the new ventures. Industry data were collected from Dunn's Industry Ratios.

Findings

Results suggest that ventures which internationalize early are more likely to continue internationalizing at a higher rate as they mature. Early internationalization did not affect sales growth or financial performance of new ventures in the period after initiation. In addition, generic strategies of these ventures affected internationalization and financial performance differently.

Research limitations/implications

The importance of venture strategy and prior internationalization effort should be considered when investigating the internationalization patterns and outcomes of new ventures. The small size of the sample and the focus on a limited number of variables limit the generalizability of this study.

Practical implications

New venture managers should consider the role of generic strategy and prior internationalization efforts when planning future internationalization.

Originality/value

This research provides an initial understanding of what happens to new ventures as they begin to mature and in particular, the effects of early generic strategy and internationalization on later venture performance are identified.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 12 no. 2
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 10 July 2018

Runping Guo

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…

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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.

Details

Management Decision, vol. 57 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 October 2002

Stanley F. Stasch

Based upon a study of between fifty to sixty case examples of new venture start‐ups, the author presents a screening procedure for entrepreneurs to use when evaluating…

Abstract

Based upon a study of between fifty to sixty case examples of new venture start‐ups, the author presents a screening procedure for entrepreneurs to use when evaluating whether a proposed low‐budget marketing strategy for a new venture shows promise of being successful. The procedure consists of four sets of screening conditions. A well‐designed marketing strategy should have a reasonably good chance of being successful if it (1) will tightly integrate the product/service and price offerings, the intended distribution method, and the intended promotion plan with the new venture’s designated target market, (2) will encounter no serious marketing strategy execution difficulties which cannot be resolved, (3) uses marketing concepts which can be executed with a small marketing budget, and (4) displays three characteristics believed to be strongly associated with marketing strategies that are successful over the long term.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 4 no. 3
Type: Research Article
ISSN: 1471-5201

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Article
Publication date: 19 May 2022

Lapologang Sebaka and Shuliang Zhao

Synthesizing from the institutional theory and social network theory, this study investigates factors influencing green innovation performance in new ventures.

Abstract

Purpose

Synthesizing from the institutional theory and social network theory, this study investigates factors influencing green innovation performance in new ventures.

Design/methodology/approach

The findings show that the dimensions of internal social network; heterogeneous network and tie strength have significant positive effects on proactive environmental strategy based on a sample of 300 new ventures in China.

Findings

The results further support the mediating role of proactive environmental strategy on internal organizational networks and green innovation performance of new ventures. The study further investigated the moderating role of the regulatory quality as a dimension of institutional environment in China. The results show that the regulatory quality positively moderates the relationship between proactive environmental strategy and green innovation performance. Policy and managerial implications are further discussed.

Originality/value

Over the past 20 years, green innovation has increasingly attracted the attention of policymakers and scholars. However, most studies have focused on mature ventures, and little attention has been given to how newly established ventures attain green innovation performance.

Details

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

Keywords

1 – 10 of over 41000