Search results
1 – 8 of 8Aristides I. Ferreira, Timo Braun, Helena Carvalho, António C.M. Abrantes and Jörg Sydow
Many start-ups do not survive the first few years of business. Previous studies suggest that networks play a role in start-ups' success, but this positive effect has limits. The…
Abstract
Purpose
Many start-ups do not survive the first few years of business. Previous studies suggest that networks play a role in start-ups' success, but this positive effect has limits. The purpose of this paper is to answer the call for a better understanding of the dark side of networks and the variables that condition variables' effect on the likelihood of start-ups' survival.
Design/methodology/approach
A longitudinal research design includes 139 start-ups (102 from Germany and 37 from Portugal) and a total of 252 participants. A generalized linear mixed model (GLMM)was applied to estimate all the coefficients, to test the mediation (H1), the moderation (H2) and the moderated mediation (H3) while considering the economic situation of the start-up (sales growth), start-ups' networking behavior, creativity orientation and ultimately the likelihood of survival.
Findings
Based on an empirical study from two different countries, the results show that effective networking is contingent on the start-up's economic situation and creative potential. Specifically, the results point to situations in which early sales growth may lead to external networking, which, in contexts of low creativity-oriented start-ups, can compromise the start-ups' success.
Originality/value
Based on the findings, the authors compare scenarios in which networking increases the chances for start-up survival with situations where networking can have adverse effects. This study highlights the importance of considering specific start-up parameters, such as start-ups' economic situation and level of creativity orientation, in the business venturing literature.
Details
Keywords
Maria Ripollés and Andreu Blesa
The purpose of this paper is to demostrate that commitment to developing knowledge sharing, coordination, adaptation and resolving potential conflict results in idiosyncratic…
Abstract
Purpose
The purpose of this paper is to demostrate that commitment to developing knowledge sharing, coordination, adaptation and resolving potential conflict results in idiosyncratic relational assets for firms, which increases the benefits that international new ventures (INVs) can obtain from their networking activity.
Design/methodology/approach
To test the theoretical model, a survey was conducted among a sample of INVs. The data obtained were examined with structural equation modelling using the maximum likelihood estimation procedure in linear structural relations software.
Findings
The results showed positive effects of network entrepreneurial orientation (EO) on knowledge sharing, coordination, adaptation and resolving potential conflict, but only network coordination showed a positive effect on international performance.
Research limitations/implications
The study introduces and extends EO to the network level and shows that it contributes to INVs’ international performance through its influence on the development of coordination activities among networked firms.
Practical implications
The results provide guidance for building INVs’ networks. Entrepreneurs will find orientations about which partners could be more valuable to them.
Originality/value
Little research has addressed the study of network management activities to create a network structure. This paper reveals how firms’ volition and commitment to networking helps us to understand, in a fine-grained manner, how INVs gain benefits from their social networks. Additionally, EO at the network level is also studied, and arguments are proposed showing its relationships with the aforementioned relational activities based on the fact that entrepreneurial-oriented partners are supposed to be more active in networking.
Details
Keywords
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.
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
Keywords