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Book part
Publication date: 3 June 2020

Araceli Almaraz Alvarado

This chapter is focused in a methodological frame to study the practices of entrepreneurial agents and the startups in nontechnological sectors in the middle-income countries. The…

Abstract

This chapter is focused in a methodological frame to study the practices of entrepreneurial agents and the startups in nontechnological sectors in the middle-income countries. The startup of ideas involves three phases that comprise the first life cycle of a possible company considering too sociocultural aspects as external factors implied in the creation, prototype, and entry to markets. In Latin America, the type of risks experienced by companies in their early stages of life and incubation are not known in a timely manner. The lack of information on entrepreneurship and its agents in countries such as Mexico also inhibits visualization of heterogeneity of contexts to business development, and how some regions are more propensity to boost startups than others, in different sectorial and branches of knowledge. Mexico like rest countries in Latin America has a high percentage of SMEs focused in sectors that are innovative but not are participating in the last technological waves. For this reason, it is necessary to know how these agents prepare, manage, and apply entrepreneurship in accordance with institutional, technological, and sociocultural dispositions to structure their experiences and make more vigorous the territorial entrepreneurial. Small and medium businesses are building new paths taking advantage of territorial and cultural opportunities. Applying the framework proposed in the last part of this chapter is presented a case of study of an entrepreneur oriented to craft brewer production in Tijuana, Mexico.

Details

The History of Entrepreneurship in Mexico
Type: Book
ISBN: 978-1-83909-172-8

Keywords

Open Access
Article
Publication date: 26 December 2023

Raoni Barros Bagno, Gina Colarelli O’Connor, Mario Sergio Salerno and Julio Cezar Fonseca de Melo

Established companies often engage with startups as a way to improve their innovation performance. While there has been extensive discussion on the reasons, modes, and expected…

Abstract

Purpose

Established companies often engage with startups as a way to improve their innovation performance. While there has been extensive discussion on the reasons, modes, and expected outcomes of these initiatives, there is still a need to understand more about how corporate engagements with startups (CEwS) evolve and how they can enhance a company’s innovation capability. This study proposes a framework of engagement strategies, discussing their purposes and implications to understand the subject better.

Design/methodology/approach

This study involved managers from twelve large, established companies across various sectors. The authors used a multicase approach to analyze their experiences and offer a framework for corporate-startup engagement.

Findings

The framework for corporate-startup engagement consists of four main strategies: (1) innovative improvement, (2) R&D expansion, (3) more value to corporate venture capital and (4) ecosystem articulation. The authors found that ecosystem articulation, which combines the potentials of the other three strategies, is the most sophisticated approach.

Originality/value

This study offers a systematic view of the CEwS phenomenon, identifying the various modes of engagement, the reasons for adopting each one and potential ways to advance and improve them. For managers, the study reveals the CEwS as a lever to build innovation capabilities over time.

Details

Innovation & Management Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2515-8961

Keywords

Article
Publication date: 7 September 2023

Shaun Shuxun Wang

This paper provides a structural model to value startup companies and determine the optimal level of research and development (R&D) spending by these companies.

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Abstract

Purpose

This paper provides a structural model to value startup companies and determine the optimal level of research and development (R&D) spending by these companies.

Design/methodology/approach

This paper describes a new variant of float-the-money options, which can act as a financial instrument for financing R&D expenses for a specific time horizon or development stage, allowing the investor to share in the startup's value appreciation over that duration. Another innovation of this paper is that it develops a structural model for evaluating optimal level of R&D spending over a given time horizon. The paper deploys the Gompertz-Cox model for the R&D project outcomes, which facilitates investigation of how increased level of R&D input can enhance the company's value growth.

Findings

The author first introduces a time-varying drift term into standard Black-Scholes model to account for the varying growth rates of the startup at different stages, and the author interprets venture capital's investment in the startup as a “float-the-money” option. The author then incorporates the probabilities of startup failures at multiple stages into their financial valuation. The author gets a closed-form pricing formula for the contingent option of value appreciation. Finally, the author utilizes Cox proportional hazards model to analyze the optimal level of R&D input that maximizes the return on investment.

Research limitations/implications

The integrated contingent claims model links the change in the financial valuation of startups with the incremental R&D spending. The Gompertz-Cox contingency model for R&D success rate is used to quantify the optimal level of R&D input. This model assumption may be simplistic, but nevertheless illustrative.

Practical implications

Once supplemented with actual transaction data, the model can serve as a reference benchmark valuation of new project deals and previously invested projects seeking exit.

Social implications

The integrated structural model can potentially have much wider applications beyond valuation of startup companies. For instance, in valuing a company's risk management, the level of R&D spending in the model can be replaced by the company's budget for risk management. As another promising application, in evaluating a country's economic growth rate in the face of rising climate risks, the level of R&D spending in this paper can be replaced by a country's investment in addressing climate risks.

Originality/value

This paper is the first to develop an integrated valuation model for startups by combining the real-world R&D project contingencies with risk-neutral valuation of the potential payoffs.

Details

China Finance Review International, vol. 14 no. 1
Type: Research Article
ISSN: 2044-1398

Keywords

Article
Publication date: 25 July 2019

Achsania Hendratmi, Muhamad Nafik Hadi Ryandono and Puji Sucia Sukmaningrum

This study aims to develop an Islamic crowdfunding model based on a website platform for startup companies.

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Abstract

Purpose

This study aims to develop an Islamic crowdfunding model based on a website platform for startup companies.

Design/methodology/approach

Apart from reviewing related literature, specifically focus group discussion with 16 CEO of startup companies, in-depth interview with two crowdfunding provider, Fiqh expert and technology platform expert for the development of an Islamic crowdfunding website platform for startup companies.

Findings

The concept of Islamic crowdfunding is recommended as a funding solution for small and medium-sized enterprises and startup companies. Therefore, it was deemed crucial for this study to develop an Islamic crowdfunding model based on a website platform as a form of innovative acceleration to provide alternative funding for a startup company, which subsequently expands to a growing and sustainable business. Furthermore, the use of a website platform for the operation of a crowdfunding mechanism is deemed as an effective means to link cross-geographical investors with the startup company owners in Indonesia, specifically East Java.

Practical implications

Islamic crowdfunding website platform can be the solution for startup companies to obtain capital funds while startup companies are not able to provide collateral to attain financial assistance and experience problems. Expectedly, the government should provide legality, regulation, licensing and socialization matters pertaining to crowdfunding to obtain legal legality from the country.

Originality/value

There is still no research to develop the Islamic crowdfunding model using a website platform. This study was expected to provide essential insights on the effective development of an Islamic crowdfunding website platform integrated with startup companies, investors and Sharia committee.

Details

Journal of Islamic Marketing, vol. 11 no. 5
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 24 May 2022

Renata de Oliveira Mota, Adauto Bueno, Jéssica dos Santos Leite Gonella, Gilberto Miller Devós Ganga, Moacir Godinho Filho and Hengky Latan

This paper aims to evaluate the impacts of the COVID-19 crisis on startups performance and the moderating effects played by several resilience-related startup characteristics…

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Abstract

Purpose

This paper aims to evaluate the impacts of the COVID-19 crisis on startups performance and the moderating effects played by several resilience-related startup characteristics during times of crisis.

Design/methodology/approach

To achieve this, 94 Brazil-based startups were surveyed, and multivariate data techniques (PLS-SEM) were applied.

Findings

The results show that despite the startups performance having been affected by the pandemic crisis, the response measures, when influenced by the resilience characteristics of these companies, moderated this effect. Furthermore, our findings suggest the future challenges to be faced by these organisations in the post-pandemic period.

Research limitations/implications

Proposing a framework, our survey research contributes to the dynamic capabilities theory by showing that startups resilience is linked to the micro-foundations of sensing (e.g. innovation systems, resilience culture, pivoting practices, innovativeness products), seizing (e.g. leadership/focused skills, people development and selection, agility, clear vision of business process) and reconfiguring capabilities.

Practical implications

Not only for theory, but this paper also contributes insights and guidelines for business practice in the face of challenges arising from times of crisis. By demonstrating the positive effect of early response measures based on resilience, our findings provide genuine managerial input that can help managers, funders and decision-makers in these companies operations against turbulent crises early on, thereby supporting the traction phase and sustaining their performance.

Originality/value

Previous research has examined the effects of the COVID-19 crisis in several sectors and perspectives. However, this study is the first to empirically test and clarify how the resilience and singularities of these new business models based on innovation could react to the changes caused by the pandemic.

Details

Management Decision, vol. 60 no. 12
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 25 March 2020

Annika Steiber and Sverker Alänge

Corporations' emphasis on startup collaboration for corporate innovation has reached a new level in the context of digital transformation. The purpose of this paper is to examine…

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Abstract

Purpose

Corporations' emphasis on startup collaboration for corporate innovation has reached a new level in the context of digital transformation. The purpose of this paper is to examine three different models of corporate-startup collaboration and the models' effects on the case companies' capabilities for, and actual outcome in regards to their business transformations.

Design/methodology/approach

The theory and case studies on corporate-startup collaboration models are based on several years' empirical study on 30+ multi-national corporations in the Western world. Further, iterative literature reviews on digital and business transformation have been conducted, leading to the identification of two different, but complementing frameworks used to analyze each case's capabilities and outcome in regards to business transformation.

Findings

Collaboration with startups was found to positively affect the firms' business transformation. Further, the three-step analytical process is a valuable path to better understand, and improve, the cases' capability for, and outcome in regards to their business transformations.

Research limitations/implications

The paper includes three case studies and a new process for analyzing their effects on capabilities for, and actual outcome in regards to business transformation. More research is needed, both on cases and on how to refine the analytical process.

Practical implications

The practical contributions from this paper are the in-depth description of the three operational cases, as well as insights on how each model's set up (approach) can affect both capabilities for, but also level of business transformation. As a result, a company might need a portfolio of different startup collaboration initiatives in order to manage a more holistic transformation of their business.

Originality/value

The paper's main theoretical and practical contributions are further knowledge on organizations and organizational practices for corporate-startup collaboration, as well as a three-step process for analyzing each case's effect on the respective firm's capabilities for, and actual outcome in regards to business transformation.

Details

European Journal of Innovation Management, vol. 24 no. 2
Type: Research Article
ISSN: 1460-1060

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.

Book part
Publication date: 2 August 2016

Stuart J. H. Graham and Ted S. Sichelman

This chapter provides evidence on how young technology startups are employing intellectual property (IP) protection when innovating and competing in the United States. Although…

Abstract

This chapter provides evidence on how young technology startups are employing intellectual property (IP) protection when innovating and competing in the United States. Although researchers and teachers of university technology transfer often think only in terms of patents and the Bayh-Dole Act, this chapter suggests that adopting a more nuanced view of IP rights is appropriate. After reviewing the primary non-patent types of IP protection available in the U.S. (copyright, trademark, and trade secret), we explain that while patents are often considered the strongest protection, for some entrepreneurs – particularly those operating in the U.S. software and Internet sectors – patents may be the least important means of capturing value from innovation. We present evidence from the 2008 Berkeley Patent Survey to demonstrate that IP is used by U.S. startups in very different ways, and to different effects, across technology sectors and other company-specific characteristics. Contrary to the common assumption in academic discourse, we show that different forms of IP protection often serve as complements, rather than substitutes.

Details

Technological Innovation: Generating Economic Results
Type: Book
ISBN: 978-1-78635-238-5

Keywords

Open Access
Article
Publication date: 29 March 2023

Christian Hugo Hoffmann

The purpose of this study is to showcase that the valuation of startups is still considered to be more “art than science”. Moreover, such non-rigorous approaches often lead to…

Abstract

Purpose

The purpose of this study is to showcase that the valuation of startups is still considered to be more “art than science”. Moreover, such non-rigorous approaches often lead to valuations, which turn out to be too high, which in turn has become a well-known phenomenon to a broader audience due to shining examples such as We Work. This is reason enough to revisit the important topic of where we stand today with startup valuation procedures and methodologies.

Design/methodology/approach

Literature synthesis and exploratory analysis.

Findings

While some studies describe sound results about how to assess startups, what the authors found was that many questions remain open or have not been covered at all. This is the reason why the authors needed to apply a substantial amount of reasoning in the analysis of studies, which do not exactly deal with startup companies. The authors provided some interesting impulses for future research.

Originality/value

Based on an original overview of the current state of research about the valuation of startup companies, this paper makes the following principal contribution to both the literature and practice: on the one hand, the authors assess four impact factors on startup values critically; on the other, the authors provide an outlook on promising future research avenues.

Details

Journal of Ethics in Entrepreneurship and Technology, vol. 3 no. 1
Type: Research Article
ISSN: 2633-7436

Keywords

Article
Publication date: 8 March 2022

Yan Zhou, Sangmoon Park, Qifeng Wang, Justin Zuopeng Zhang and Abhishek Behl

Bike-sharing is popular worldwide, and it has led to a new development direction in green transportation. However, the collapse of many bike-sharing startups and residual social…

1995

Abstract

Purpose

Bike-sharing is popular worldwide, and it has led to a new development direction in green transportation. However, the collapse of many bike-sharing startups and residual social problems has brought about contradictions and challenges to the development of the industry. The purpose of this paper is to determine how internal factors affect the survival of bike-sharing startups.

Design/methodology/approach

The authors used binary logit regression as the measurement model to conduct an empirical analysis based on 137 bike-sharing startups in China. The study focuses on using traditional theoretical evidence and considers the uniqueness of the industry to jointly explore the survival factors that influence the emerging business model of bike-sharing.

Findings

The results show that entrepreneurial team size and differentiation strategy positively influence survival. Founder-CEOs have a negative impact on survival. Founders' entrepreneurial experience and venture capital have no significant influence on survival.

Originality/value

The results verify the role of traditional survival factors in the new business model of sharing economy and fill the research gap on the survival strategy of startups. This study offers a unique perspective for researchers to better understand the sharing economy industry and provides practical guidance for entrepreneurs and investors to enter the market.

Details

Kybernetes, vol. 52 no. 2
Type: Research Article
ISSN: 0368-492X

Keywords

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