Entrepreneurial copycats: A resource orchestration perspective on the link between extra-industry business model imitation and new venture growth

Purpose This paper aims to explore how intra-industry entrepreneurial experience and failure entrepreneurial experience affect novelty-centered business model design in a new venture. Moreover, the authors also consider whether the contingent value of entrepreneurial experience may differ according to competitive intensity. Design/methodology/approach A survey via questionnaire was conducted with 290 entrepreneurs and top managers from Chinese new ventures that provided the research data. Hierarchical regression analysis was used to test the proposed theoretical hypotheses. Findings The empirical results indicate that intra-industry entrepreneurial experience has an inverted U-shaped effect on novelty-centered business model design, whereas failure entrepreneurial experience has a negative effect on novelty-centered business model design. Furthermore, the authors also find that competitive intensity weakens the inverted U-shaped effect of intra-industry entrepreneurial experience on novelty-centered business model design. Originality/value This study offers new insights into the effects of intra-industry entrepreneurial experience and failure entrepreneurial experience on novelty-centered business model design and provides useful suggestions for new ventures to promote business model design.

Download Full-text

New Venture Growth: Role of Ecosystem Elements and Prior Experience

Entrepreneurship Research Journal ◽

10.1515/erj-2018-0215 ◽

2019 ◽

Vol 10 (1) ◽

Author(s):

Sumita Sarma ◽

Jacob M. Marszalek

Keyword(s):

Firm Growth ◽

New Venture ◽

Moderating Effects ◽

Entrepreneurial Ecosystem ◽

New Firm ◽

Micro Level ◽

New Venture Growth ◽

Prior Experiences ◽

Level Analysis

AbstractEntrepreneurial ecosystems provide a rich context for analyzing entrepreneurial outcomes such as new venture growth. In most entrepreneurship research, influence of context or environment is undermined or controlled. Also, most studies consider either macro- or micro-level factors using single-level analysis, which mute the higher-level influences on new firm growth. To overcome these gaps, we empirically consider macro- and micro-level factors together, and their cross-level interactions to portray the nexus of entrepreneurs and entrepreneurial ecosystem in growth of new independent ventures in the various US metros. Our findings provide interesting insights on the moderating effects of prior experiences of founders on ecosystem attributes and firm growth.

Download Full-text

AuthBridge Research Services Pvt. Ltd

Indian Institute of Management Ahmedabad ◽

10.1108/case.iima.2020.000187 ◽

2019 ◽

pp. 1-15

Author(s):

Promila Agarwal ◽

Amit Karna

Keyword(s):

Risk Assessment ◽

Emerging Markets ◽

Business Model ◽

New Venture ◽

Classroom Discussions ◽

Serial Entrepreneur ◽

Set Up

AuthBridge is a leading Background Screening & Risk Assessment Company. Founded in 2005, its mission is to be among the top and dominant in every line of business it undertakes with its creative, continually improving solutions. AuthBridge has 200 clients in 2015, and wishes to grow to serve 2000 clients by 2020. The case outlines the process it has adopted till date, and the journey of entrepreneur in terms of how he reached there. The founder faces the dilemma of whether he should scale this business model in other countries (emerging markets?) and what part of his model should be imitated and what part adapted. Through this case learners can understand the entrepreneurial journey of a serial entrepreneur and how he identified an opportunity in the market. The case also enables classroom discussions on developing a business model from the scratch, and how to set up efficient processes in a new venture.

Download Full-text

Orchestrating boundaries: The effect of R&D boundary permeability on new venture growth

Journal of Business Venturing ◽

10.1016/j.jbusvent.2018.05.003 ◽

2019 ◽

Vol 34 (1) ◽

pp. 63-79 ◽

Cited By ~ 6

Author(s):

Robert S. Nason ◽

Johan Wiklund ◽

Alexander McKelvie ◽

Michael Hitt ◽

Wei Yu

Keyword(s):

New Venture ◽

Boundary Permeability ◽

New Venture Growth

Download Full-text

Entrepreneurial Business Ties and New Venture Growth: The Mediating Role of Resource Acquiring, Bundling and Leveraging

Sustainability ◽

10.3390/su11010244 ◽

2019 ◽

Vol 11 (1) ◽

pp. 244 ◽

Cited By ~ 2

Author(s):

Gang Wang ◽

Linwei Li ◽

Xu Jiang

Keyword(s):

Resource Management ◽

New Ventures ◽

Empirical Support ◽

Mediating Effect ◽

New Venture ◽

Management Perspective ◽

New Venture Growth ◽

Resource Leveraging ◽

Business Ties

Adopting insights from a resource management perspective, this study investigates how entrepreneurs utilize their business ties to promote new venture growth. We propose a multiple mediator model in which different resource management processes (i.e., resource acquiring, resource bundling, and resource leveraging) act as critical mediating mechanisms. We undertook a two-stage survey design, and collected data during the period from 2013 to 2016. Drawing on a longitudinal sample of 229 new ventures in China, we tested the hypotheses through the optimal scaling regression (OSR) analysis. We find empirical support for the mediated effects of entrepreneurial business ties via resource bundling and resource leveraging to promote new venture growth. However, our results find the mediating effect of resource acquiring non-significant. These findings will deepen understanding of the role of entrepreneurial business ties in the new venture growth process and expand resource management perspective into the entrepreneurial field.

Download Full-text