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Article
Publication date: 6 October 2021

George Joseph, Nimitha Aboobaker and Zakkariya K.A.

This study aims to explore the behavioral patterns of entrepreneurs, their cognitive styles and personality characteristics that can lead to a self-destructive chain of events…

1524

Abstract

Purpose

This study aims to explore the behavioral patterns of entrepreneurs, their cognitive styles and personality characteristics that can lead to a self-destructive chain of events during the transition from a fledgling business to one capable of long-term, profitable growth. This study adopts the self-regulation attitude theory to uncover the reasons for premature start-up scaling, which will help founders to study on their cognitive biases, emotions and behaviors and make efforts to do what does not come naturally to them.

Design/methodology/approach

The respondents for this qualitative study were selected from a group of entrepreneurs with extensive experience with technology start-ups that have either failed or succeeded during their development stages. In-depth semi-structured interviews were conducted with eight participants, who were selected through snowball sampling, on the theme of understanding “How do premature scaling mistakes happen?”. Thematic analysis was used to unearth common themes.

Findings

The results of this study identified the following themes, “comparison,” “emotional over-reaction,” “impatience,” “mistaken customer priorities,” “overestimation” and “overconfidence,” which eventually leads to premature scaling. The underlying decision-making heuristics of entrepreneurs can be identified as engulfed in different cognitive biases and emotions resulting in negative behavioral patterns, as in the case of premature scaling. Of the six themes, “comparison,” “mistaken customer priorities,” “overestimation” and “overconfidence relates to cognitive bias” and “emotional over-reaction” and “impatience” relate to emotional factors.

Research limitations/implications

The study was made possible with the support of the voluntary participants chosen by purposive and snowballing data sampling. The interviewee and interviewer biases could have also crept in as part of this qualitative approach. The study pertains only to start-ups in the information technology sector and further studies need to be done to generalize the results across industries as well.

Practical implications

This early-stage underestimation of unexpected obstacles in the entrepreneurship journey necessitates a focus on the entrepreneur too, as much as the concept. In these hectic and fast-paced circumstances, aspiring entrepreneurs must be taught how to deal objectively with themselves and others, as well as think strategically. Leaders who scale do so because they take purposeful measures to overcome their weaknesses through self-discipline, soliciting advice from others and using their right to change their attitude and points of view.

Originality/value

The study frames the new approach into the entrepreneurial literature, linking it to self-regulation attitude theory and adds to the nascent literature on neuroentrepreneurship which discuss entrepreneurial cognition, decision-making, and entrepreneurial behavior. This study attempted to explore the reasons behind the premature scaling of startups on an individual level. This study is pioneering in exploring the cognitive factors underlying an entrepreneur’s decision that results in premature scaling. This study provides insights for academicians, entrepreneurs and policymakers and helps understand the cognitive journey that leads to premature scaling.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 15 no. 1
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 14 December 2023

Juan Martin Ireta-Sanchez

The purpose of this study is to identify the business strategies that entrepreneurs have formulated to establish the business with the intention of scaling up in the information…

Abstract

Purpose

The purpose of this study is to identify the business strategies that entrepreneurs have formulated to establish the business with the intention of scaling up in the information technology (IT) sector in Chile, given that they have managed to scale up sustainably at an average annual rate of 73.3% and an average annual employee growth rate of 37% for four consecutive years after an establishment period of 25 months.

Design/methodology/approach

Three methodological steps were used to identify which strategic initiatives are relevant to the establishment of small- and medium-sized enterprises (SMEs) on the path to scaling up. The first part consisted of identifying the literature and defining the research propositions and research questions. The second part was to prepare, collect and analyse the data to conduct the research by applying, transcribing, reviewing and coding the sources of evidence to explore how SMEs are able to develop strategic initiatives for the start-up process. The final stage was to validate the research proposal to identify potential strategic initiatives identified during the multi-case study.

Findings

As a result of the data analysis and empirical findings, three deliberate strategic initiatives were identified: staying engaged with customers, delivering successful business solutions and articulating social capital. However, in crisis situations, entrepreneurs readjust their strategies based on their management skills and an emergent strategic initiative was identified as securing the financial structure and revolutionising change. While this research was not designed to identify personal attributes, it did highlight the importance of adaptation and learning as a skill to drive the business model for scaling up during the establishment of their business.

Research limitations/implications

It is clear that the study focused on Chile and cannot be replicated in other regions or sectors due to the characteristics of the sample itself, but it provides empirical evidence that there are cycles prior to scale up that need to be understood. The findings were empirically validated during the establishment phase, but the deliberate and emergent strategic initiatives that consolidated the SME to prepare for its scale-up process are not evident in the theory.

Practical implications

The IT sector will continue to grow and change after the pandemic, and the global economy will use more digital systems, creating new ways of working with the use of IT. This context will impact on SMEs where strategies, whether deliberate or emergent, will need to be part of the new business models, and therefore, caution should be exercised when using the results of this study. Public and private institutions should educate and guide entrepreneurs for the potential scaling up of their SMEs without having to wait 42 months, according to Global Entrepreneurship Monitor 2021-2022 (Hill et al., 2022). Scaling up can begin as early as 25 months after establishment, breaking the paradigm of the theory that the SME must be established in a period of 3.5 years. This period cannot be generalised as business opportunities in the IT sector are faster. The research also contributes by reporting that contingency planning is relevant during the establishment phase.

Social implications

Educational institutions and the public sector have made efforts to change business cultures regarding the importance of strengthening entrepreneurship, but teaching the emergent strategies that often challenge SME creation is not yet widespread in educational formats. This is a challenge not only for institutions but also for entrepreneurs trying to anticipate the constant changes in the global economy. This research provides an opportunity to create more dynamic business models with more conscious risk planning.

Originality/value

Although the literature has confirmed the findings, this research has provided a pre-scaling picture that links these two important stages on the axis of deliberate and emergent strategies. The findings confirm the importance of correctly embedding five strategic initiatives for the establishment of the SME if it is to continue on its journey towards business scale-up. However, there is a lack of empirical evidence in emerging economies on how entrepreneurs have found the right path to scale-up.

Article
Publication date: 13 July 2020

Julia Goede

The purpose of this study is to (re-)evaluate the explanatory power of the stressor–stress–strain model and its' current operationalization by examining the influence of general…

Abstract

Purpose

The purpose of this study is to (re-)evaluate the explanatory power of the stressor–stress–strain model and its' current operationalization by examining the influence of general and interaction adjustment and the mediating effect of general satisfaction on expatriates' and spouses' intention to prematurely return from an assignment or overseas location. Though expatriates' premature return intention has been well examined in prior literature, this is the first study to focus on spouses' premature return intention from the expatriate's assignment.

Design/methodology/approach

To evaluate the hypotheses, a sample of 104 expatriates and a sample of 64 spouses were collected and analysed utilizing structural equation modeling.

Findings

The results show that adjustment, as the opposite of distress, is not a direct negative driver of expatriates' nor spouses' premature return intention. Instead, the findings underscore the relevance of the general satisfaction with the international assignment (IA) as a mediator for both expatriates and spouses, which emphasizes the importance of attitudinal factors in the model. Overall, the results indicate that adjustment, in particular interaction adjustment, might not be a timely measure of distress anymore.

Practical implications

In order to reduce expatriates' and spouses' premature return intention multinational corporations should aim at maximizing satisfaction levels during the IA. To achieve this, both should be included in the selection process prior to the IA to tailor support mechanisms to satisfy their expectations.

Originality/value

This study is the first to investigate the premature return intention from the expatriates' and spouses' perspectives, while (re-)evaluating the explanatory power of the stressor–stress–strain model at present.

Details

Journal of Global Mobility: The Home of Expatriate Management Research, vol. 8 no. 2
Type: Research Article
ISSN: 2049-8799

Keywords

Abstract

Details

Future Governments
Type: Book
ISBN: 978-1-78756-359-9

Article
Publication date: 1 September 2004

Scott David Williams

Divergent thinking is an integral process in creativity. This study presents and tests an interactionist, divergent‐thinking based model of individual creativity in organizations…

11080

Abstract

Divergent thinking is an integral process in creativity. This study presents and tests an interactionist, divergent‐thinking based model of individual creativity in organizations. Openness to experience is a personality trait that relates to divergent thinking and, therefore, is hypothesized to be related to creative performance in organizations. The effects of openness to experience are likely to be partially mediated by an individual's attitude toward divergent thinking (ATDT). Some individuals do not care to engage in divergent thinking, and researchers have asserted that negative ATDT is an impediment to individual creativity in organizations. However, the empirical link between one's ATDT and one's creative performance has yet to be demonstrated. Contextual factors also influence creative attitudes and behavior. ATDT is also likely to be influenced by one's supervisor's attitude. The amount of structure that supervisors initiate for their subordinates is likely to have a direct, negative effect on subordinates' divergent thinking, and may also affect divergent thinking indirectly by influencing subordinates’ ATDT. Results generally support the model. Openness to experience and ATDT are positively associated with employees' creative performance. In addition, some support is provided for a negative relationship between initiating structure and subordinates’ ATDT.

Details

European Journal of Innovation Management, vol. 7 no. 3
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 14 October 2021

Brian Leavy

The Fail-Safe Startup: Your Roadmap for Entrepreneurial Success, the new book by entrepreneurship researcher Tom Eisenmann, sets out to help improve the odds by looking more…

Abstract

Purpose

The Fail-Safe Startup: Your Roadmap for Entrepreneurial Success, the new book by entrepreneurship researcher Tom Eisenmann, sets out to help improve the odds by looking more closely at the most prevalent causes of startup failure and how to avoid them.

Design/methodology/approach

Eisenmann research led him to identify six distinct patterns that explain a large proportion of startup failures, three relating to early stage failures and three to late stage.

Findings

Strong demand from early adopters may lead a founder to scale up prematurely.

Practical/implications

Entrepreneurs must research differences in the needs of likely early adopters and mainstream customers during the upfront customer discovery phase.

Originality/value

Entrepreneurs must research differences in the needs of likely early adopters and mainstream customers during the upfront customer discovery phase. 10; 10;The line between visionary entrepreneur and cult leader can become blurry, and a founder?s ?reality distortion field--useful for motivating others to help pursue the founder?s dream?can become a liability.

Details

Strategy & Leadership, vol. 49 no. 5
Type: Research Article
ISSN: 1087-8572

Article
Publication date: 8 March 2021

Diego Souza Silva, Antonio Ghezzi, Rafael Barbosa de Aguiar, Marcelo Nogueira Cortimiglia and Carla Schwengber ten Caten

Most studies investigating the adoption of lean startup (LS) practices by technology new ventures focus on software startups in mature entrepreneurial ecosystems and disregard…

1627

Abstract

Purpose

Most studies investigating the adoption of lean startup (LS) practices by technology new ventures focus on software startups in mature entrepreneurial ecosystems and disregard their applicability for opportunity exploitation in other technological backgrounds. This study contributes to this research stream by exploring how Brazilian technology new ventures (in different technological fields) tentatively adopt LS to exploit opportunities and whether LS is suitable to their emerging economy context.

Design/methodology/approach

The authors adopt an exploratory multiple-case study based on qualitative data collection and analysis of nine Brazilian biotechnology, engineering and software startups.

Findings

The study shows how technology new ventures tackle the activities of opportunity exploitation – namely, developing a product or service, acquiring human resources, gathering financial resources and setting up the organization – by leveraging LS tools and practices for business model validation; also, it identifies six contextual constraints hindering the systematic adoption of LS and reveals how technology new ventures cope with such constraints in their early stages by integrating LS with complementary strategies and practices. Furthermore, the study reveals that the systematic and comprehensive adoption of LS nurtures the development of an entrepreneurial experimental capability to explore opportunities in a quasi-scientific and hypothesis-driven fashion.

Originality/value

The study investigates how Brazilian engineering, biotechnology and software startups exploit opportunities and overcome constraints to business model validation through the combined adoption of LS and complementary strategies and practices and provides a set of propositions to guide future research.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 27 no. 4
Type: Research Article
ISSN: 1355-2554

Keywords

Book part
Publication date: 23 June 2022

Arturo Torres and Javier Jasso

This chapter aims to analyze the participation of entrepreneurship studies from the perspective of capabilities and technology-based startups in Latin America, which implies…

Abstract

This chapter aims to analyze the participation of entrepreneurship studies from the perspective of capabilities and technology-based startups in Latin America, which implies considering capabilities from a perspective of innovation, technology, knowledge, and learning. The chapter conducts a bibliometric review from which the characteristics of the Latin American presence in the analysis of startups and related issues are identified. The analysis shows that Latin America has had a small but growing presence at the world level, as is the case with the treatment of the startups in the international arena, and where the topics of innovation and capabilities have been little addressed. A scheme is proposed based on which entrepreneurial capabilities are considered as a way of understanding the creation and trajectory of startup companies. In the trajectory of the startup companies, these capabilities unfold and grow through processes of integration of complementary resources and learning processes, which result in the construction of new capabilities that feed the further growth of the company.

Open Access
Article
Publication date: 18 March 2021

Emidio Gressler Teixeira, Gilnei Luiz de Moura, Luis Felipe Dias Lopes, Diego Antônio Bittencourt Marconatto and Adalberto Américo Fischmann

The purpose of this study is to analyze the relationship between dynamic service innovation capabilities (DSICs) and startup growth in an emerging country.

3646

Abstract

Purpose

The purpose of this study is to analyze the relationship between dynamic service innovation capabilities (DSICs) and startup growth in an emerging country.

Design/methodology/approach

This paper used a theoretical DSIC model to process data on 137 Brazilian startups, using a stepwise regression.

Findings

Service startup growth is related to the capability of enterprises to understand market signals, learn from customers and design a scalable, repetitive and profitable business model.

Research limitations/implications

Despite the innovative nature of startups, this paper found that technological and networking capacities are not a determinant of growth.

Practical implications

Managers should commit themselves to improve their competence in terms of understanding market signals, even when they already have a consolidated business model, products and service offerings. The findings also function as a warning about the dangers of an excessive focus on technological capabilities.

Social implications

Innovative startups, which achieve high growth create a disproportionate number of new jobs. Hence, by indicating the dynamic capabilities that are more conducive to firm growth, this paper contributes to society and the economy at large.

Originality/value

The findings challenge the myth of technological capacity and networking skills as the main sources of startup growth. This paper shows that founders and managers of service startups who want to achieve rapid growth should concentrate more effort on other skills. Marketing competence and building scalable business models – abilities that are common to successful traditional firms – are more relevant for short-term growth than technological innovation.

Details

RAUSP Management Journal, vol. 56 no. 1
Type: Research Article
ISSN: 2531-0488

Keywords

Article
Publication date: 1 June 1995

Dragan A. Savic, Godfrey A. Walters and Jezdimir Knezevic

Describes the development of two genetic algorithm (GA) programsfor cost optimization of opportunity‐based maintenance policies. Thecombinatorial optimization problem is…

910

Abstract

Describes the development of two genetic algorithm (GA) programs for cost optimization of opportunity‐based maintenance policies. The combinatorial optimization problem is formulated and it is shown that genetic algorithms are particularly suited to this type of problem. The theoretical basis and operations of a standard genetic algorithm (SGA) are presented with an iterative procedure necessary for implementation of the SGA to least‐cost part replacement. However, an SGA used in an iterative manner may limit the global search capability of the evolutionary computing technique and may lead to suboptimal solutions. To avoid this problem, an improved GA which considers more than two groups simultaneously is devised. This model is based on the permutation representation and genetic sequencing operators originally developed for the travelling salesman problem. The same example used with the SGA confirmed that the improved GA can bring additional savings.

Details

Journal of Quality in Maintenance Engineering, vol. 1 no. 2
Type: Research Article
ISSN: 1355-2511

Keywords

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