A look at the value creation effects of patenting and capital investment through a real options lens: the moderating role of uncertainty

2010 ◽  
Vol 4 (3) ◽  
pp. 212-233 ◽  
Author(s):  
Edward Levitas ◽  
Tailan Chi
Author(s):  
Lidong Zhu ◽  
Hui Zhang ◽  
◽  

This paper explores the role of entrepreneurial marketing (EM) and environmental uncertainty (EU) in driving new ventures’ performance (NVP). Using data from a survey of 883 small ventures based in Anhui province, China, we find that EM is an important drive of NVP. Only 4 EM dimensions (customer value creation, pro-activeness, innovations, and opportunity-focus) have positive effects on growth performance (GP), and only 5 EM dimensions (customer value creation, pro-activeness, innovations, opportunity-focus, and resource leveraging) have positive effects on profit performance (PP) as well. On the other hand, we found that environmental uncertainty (EU) has a partly moderating role between EM and GP, EU only negatively moderates the relationship between pro-activeness and GP, and EU positively moderates the relationship between opportunity-focus, risk-taking and GP. In addition, EU does not have a moderating role between EM and PP.


2015 ◽  
Vol 44 (3) ◽  
pp. 1029-1064 ◽  
Author(s):  
Yusoon Kim ◽  
Thomas Y. Choi

This study integrates two disparate genres within tie-strength literature into one model to investigate the mechanisms for value creation in the buyer-supplier context. This research brings together the opposite ends of the tie-strength continuum: the “weak ties,” which are instrumental in tapping into novel ideas and emerging technologies, and the “strong ties,” which promote joint resource investments and capability development. By doing so, we bring salience to the existence of “intermediate ties” (i.e., the ties of moderate strength) and their implications for value creation. Even though the intermediate ties are likely most common in the buyer-supplier context, they have been given short shrift in the literature. We predict a U-shaped relation, where weak ties and strong ties are more effective than intermediate ties in value creation. Furthermore, we explore the moderating role of dependence asymmetry. Our hypotheses are tested using survey data from a major global automaker and its North American suppliers. The results demonstrate that both the weak and strong buyer-supplier ties lead to higher value creation, whereas intermediate ties do not increase value creation. Also, the study illustrates that, overall, asymmetric buyer-supplier ties show diminished value creation, and this moderating effect is particularly pronounced for intermediate ties.


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