scholarly journals Hybrid Strategies, Dysfunctional Competition, and New Venture Performance in Transition Economies

2016 ◽  
Vol 12 (3) ◽  
pp. 469-501 ◽  
Author(s):  
Yunzhou Du ◽  
Phillip H. Kim ◽  
Howard E. Aldrich
Keyword(s):  
Market Orientation ◽  
Transition Economies ◽  
New Ventures ◽  
Positive Influence ◽  
Organizational Legitimacy ◽  
New Venture ◽  
Hybrid Form ◽  
Hybrid Strategy ◽  
Venture Performance ◽  
New Venture Performance

ABSTRACTConventional wisdom suggests that new ventures can employ a combination of two general strategies to confront the challenges of operating in transition economies or regions known for their weak institutional conditions: These ventures may succeed by enacting a market-orientation strategy, which focuses on providing value to customers and implementing rapid responses to competitive situations. They can also engage in a more traditional political-networking strategy that engages government officials, which may yield public resources and enhance their organizational legitimacy. However, research results are inconclusive regarding the effectiveness of these strategies when they are combined in a hybrid form. We argue that the advantages of a hybrid strategy are contingent on the perception of a specific condition: dysfunctional competition. In our analysis of new venture performance in China, we show that political networking indeed amplifies the positive influence of market-orientation strategies on performance, but only in contexts where dysfunctional competition is perceived to be low. When such competition is high, political networking becomes counterproductive, diverting attention away from swift responses to market demands. By addressing how multiple strategies work together, we offer insights into the extent to which the effectiveness of hybrid strategies – incorporating both market-orientation and political-networking – depend on the context in which they are implemented.

New Ventures Competitiveness and Success; Do Intellectual Capital, IT Capabilities, Entrepreneurial and Market Orientation Really Matter?

2021 ◽  
Vol 29 (04) ◽  
pp. 295-323
Author(s):  
Muhammad Anwar ◽  
Thomas Clauss ◽  
Rizwan Ullah
Keyword(s):  
Competitive Advantage ◽  
Market Orientation ◽  
Intellectual Capital ◽  
Entrepreneurial Orientation ◽  
New Ventures ◽  
Vital Role ◽  
New Venture ◽  
Sustainable Competitive Advantage ◽  
Venture Performance ◽  
New Venture Performance

The failure ratio of new ventures across the globe pushes researchers towards finding solutions, but the response is not effective. This research project surveyed 297 new manufacturing enterprises from China to find factors that significantly contribute to the success of new ventures. The results indicated that intellectual capital significantly sustains performance and sustainable competitive advantage in new ventures. The relationship between intellectual capital and new venture performance is partially mediated by a sustainable competitive advantage. Information technology capabilities do not positively impact new venture performance and competitiveness. Entrepreneurial orientation has a significant influence on differentiation strategy and new venture performance. Sustainable competitive advantage does not mediate the path between entrepreneurial orientation and new venture performance, but it fully mediates the association between market orientation and new venture performance. This study recommends that new enterprises focus on intellectual capital, entrepreneurial orientation, and market orientation to acquire a sustainable position in the competitive market. New ventures should also evaluate their technological capabilities to understand why they do not play a vital role. Further implications have been stated.

scholarly journals Entrepreneurial alertness and new venture performance: Facilitating roles of networking capability

2018 ◽  
Vol 36 (5) ◽  
pp. 453-472 ◽  
Author(s):  
Samuel Adomako ◽  
Albert Danso ◽  
Nathaniel Boso ◽  
Bedman Narteh
Keyword(s):  
New Ventures ◽  
Policy Implications ◽  
New Venture ◽  
Primary Data ◽  
Entrepreneurial Alertness ◽  
Venture Performance ◽  
Ability To Act ◽  
Business Networking ◽  
Sub Saharan ◽  
New Venture Performance

An ability to act upon an entrepreneurial opportunity is a major driver of new venture success. However, scholarly knowledge is limited on how and when entrepreneur alertness to entrepreneurial opportunities drives new venture success. This article addresses this gap arguing that variations in new venture performance are a function of levels of entrepreneurial alertness and networking capabilities. Using primary data gathered from 203 new ventures operating in a sub-Saharan African economy, Ghana, we find that increases in the levels of entrepreneurial alertness are related to increases in new venture performance. Additionally, we find that, under conditions of increased use of social and business networking capabilities, the potency of entrepreneurial alertness as a driver of new venture success is amplified. Theoretical, managerial and policy implications of these findings are discussed.

Incubator networks and new venture performance: the roles of entrepreneurial orientation and environmental dynamism

2020 ◽  
Vol 27 (5) ◽  
pp. 727-747
Author(s):  
Wenqing Wu ◽  
Hongxin Wang ◽  
Fu-Sheng Tsai
Keyword(s):  
Entrepreneurial Orientation ◽  
New Ventures ◽  
Mediating Effect ◽  
New Venture ◽  
Environmental Dynamism ◽  
Content Type ◽  
Venture Performance ◽  
The Relationship ◽  
Moderating Role ◽  
New Venture Performance

PurposeThis study analyses the relationship between the networks of business incubators (BIs) and new venture performance. It proposes an integrated model for identifying the influence of BIs' internal and external networks on new venture performance through the entrepreneurial orientation (EO) and environmental dynamism.Design/methodology/approachThe study uses multiple regression analysis on a sample of 205 new ventures in Chinese BIs.FindingsBoth the internal and external networks of BIs positively affect new venture performance and EO has a mediating effect in this relationship. Environmental dynamism plays a positive moderating role in the relationship between BIs' internal and external networks and EO.Practical implicationsBased on the results of this study, incubator managers should focus on creating internal and external networks and leveraging network embeddedness to influence new venture performance. Further, new ventures should focus on strengthening their EO and fully consider the impact of environmental dynamism on EO implementation.Originality/valueTo address the research gaps in understanding how BI networks can support new venture growth, this study integrates BIs' internal and external networks and explores their impacts on new venture performance using co-production theory and the resource-based view. It thus opens the black box on how BI's networks affect performance from the EO perspective. Moreover, this study fully clarifies chain relationships by identifying and analysing the moderating role of environmental dynamism.

How can entrepreneurs achieve success in chaos?

Kybernetes ◽  
2019 ◽  
Vol 49 (5) ◽  
pp. 1407-1428 ◽  
Author(s):  
Lihui Xia ◽  
Biao Luo ◽  
Ying Sun
Keyword(s):  
New Ventures ◽  
Emerging Economy ◽  
New Venture ◽  
Hierarchical Regression ◽  
Content Type ◽  
Mediating Role ◽  
Venture Performance ◽  
Key Variables ◽  
New Venture Performance

Purpose This paper aims to explore the mediating role of organizational entrepreneurial capability in the link between entrepreneurs’ effectuation and new venture performance, and whether entrepreneurs’ passion positively moderates this relationship in the Chinese emerging economy. Design/methodology/approach This study collected survey data from 140 Chinese new ventures. Following an empirical design, hierarchical regression analysis and bootstrapping analysis were applied to examine six hypotheses. Findings Results reveal that organizational entrepreneurial capability plays a positively mediating role in the association between entrepreneurs’ effectuation and new venture performance. Moreover, the whole mediation model is positively moderated by entrepreneurs’ passion, not only the association but also between entrepreneurs’ effectuation and organizational entrepreneurial capability. Research limitations/implications The study is limited to the static relationships between key variables using the data obtained at one point in an emerging economy, which cannot investigate the dynamic evolution between variables. More longitudinal designs or cases to track the dynamic association should be considered. Practical implications The findings provide useful suggestions for entrepreneurs to enhance their effectual logic and entrepreneurs’ passion to better perceive and exploit opportunities and further improve new venture performance. The results also provide guidance for other groups, such as angel investors and policymakers, regarding how to use effectuation logic as an evaluation criterion to judge whether a new venture or program has investment potential. Originality/value These findings enrich the effectuation theory by providing the empirical evidence of the effect of entrepreneurs’ effectuation on new venture performance in an emerging economy. They also provide deeper insights into opportunity research by uncovering the mediating role of organizational entrepreneurial capability in the relationship between entrepreneurs’ effectuation and new venture performance.

Entrepreneurial Team Composition Characteristics and New Venture Performance: A Meta–Analysis

2017 ◽  
Vol 41 (5) ◽  
pp. 743-771 ◽  
Author(s):  
Linlin Jin ◽  
Kristen Madison ◽  
Nils D. Kraiczy ◽  
Franz W. Kellermanns ◽  
T. Russell Crook ◽  
...  
Keyword(s):  
Meta Analysis ◽  
New Ventures ◽  
Top Management Teams ◽  
New Venture ◽  
Future Research ◽  
Team Composition ◽  
Venture Performance ◽  
Entrepreneurial Team ◽  
Established Firms ◽  
New Venture Performance

Upper echelon theory highlights the importance of top management teams in large and established firms; however, effects are not always clear outside of this context. Due to the unique nature of new ventures, the composition of entrepreneurial teams and its effects on performance is worthy of investigation. Accordingly, we meta–analyze the effect of three characteristics of entrepreneurial team composition (i.e., aggregated, heterogeneity, team size) on new venture performance. Our meta–analysis, which includes 55 empirical samples and 8,892 observations, finds significant and unique effects of entrepreneurial team characteristics on new ventures. Based on our findings, we derive avenues for future research.

scholarly journals The impact of founders' personality traits on the performance of Chinese apparel new ventures

2015 ◽  
Author(s):  
◽  
Li Zhao
Keyword(s):  
Personality Traits ◽  
Online Survey ◽  
New Ventures ◽  
Apparel Industry ◽  
New Venture ◽  
Venture Performance ◽  
Research Findings ◽  
The Impact ◽  
New Venture Performance

The study investigated how founders' personality traits impact Chinese apparel new venture performance. An online survey was conducted using founders' personality traits, the quality of firm network relationships, perceived competitive advantages, and perceived Chinese apparel new venture performance scales. Grounded in Barney's (1991) resource-based view of the firm, the study findings were expected to provide further evidence of the importance of the relationship between founders' personality traits and the quality of a firm's network relationships and, in turn, the impact on Chinese apparel new venture success. The findings may help people who are interested in starting new ventures in the Chinese apparel industry manage external network relationships that are critical for new venture success. Furthermore, the research findings would improve academic understanding of the Chinese apparel industry. Supply chain partners could also utilize these findings to make appropriate strategies for improving relationships with Chinese apparel new ventures to cope with the critical business challenges of globalization and collaboration.

Personal Networks as Fosterers of Entrepreneurial Orientation in New Ventures

2005 ◽  
Vol 6 (4) ◽  
pp. 239-248 ◽  
Author(s):  
Maria Ripollés ◽  
Andreu Blesa
Keyword(s):  
Entrepreneurial Orientation ◽  
Direct Relationship ◽  
New Ventures ◽  
New Venture ◽  
Personal Networks ◽  
Network Development ◽  
Personal Network ◽  
Venture Performance ◽  
Indirect Relationship ◽  
New Venture Performance

Two central propositions are evaluated in this paper: the existence of a direct relationship between the entrepreneur's personal networks and entrepreneurial orientation (EO) development, and the existence of an indirect relationship between the two through the information acquired from personal networks. The effect of EO and personal network development on new venture performance is also studied. The authors test these relationships on a sample of Spanish new ventures. They then discuss the results and comment on possible implications in the academic and managerial sectors.

The Role of Entrepreneurs in the Entrepreneurial Ecosystem

2020 ◽  
pp. 252-275
Author(s):  
Xiu Yang ◽  
Ting Yang ◽  
Yi Wang ◽  
Qing Wang
Keyword(s):  
Self Efficacy ◽  
Positive Impact ◽  
New Ventures ◽  
New Venture ◽  
Entrepreneurial Learning ◽  
Entrepreneurial Performance ◽  
Mediating Role ◽  
Venture Performance ◽  
Internal Mechanism ◽  
New Venture Performance

This chapter introduces entrepreneurial self-efficacy, a psychological cognitive factor, into the context of entrepreneurship, trying to sort out the internal mechanism of entrepreneurial self-efficacy, dual entrepreneurial learning, and entrepreneurial performance and construct a theoretical model. The hypothesis is that entrepreneurial self-efficacy has a positive effect on both dual entrepreneurial learning and new venture performance. Dual entrepreneurial learning has a positive impact on the performance of new ventures and acts as a mediator between entrepreneurial self-efficacy and entrepreneurial performance. The empirical results show that entrepreneurial self-efficacy can promote exploratory entrepreneurial learning and the improvement of new venture performance. Exploratory entrepreneurial learning plays a mediating role in the effect of entrepreneurial self-efficacy on the performance of start-ups, while entrepreneurial learning can't play a mediating role in the process of exploitative entrepreneurial learning.

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