Learning from rivals: the memory-inconsistent strategy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chuandi Jiang ◽  
Jeffrey Muldoon ◽  
Hadi Alhorr
Keyword(s):  
Organizational Learning ◽  
New Ventures ◽  
Organizational Memory ◽  
Strategic Decision ◽  
New Venture ◽  
Multiple Sources ◽  
Content Type ◽  
Strategic Resources ◽  
Organizational Inertia ◽  
And Performance

PurposeThe purpose of this paper is to examine the role of competitive memory that assists the new ventures to overcome challenges due to the liability of newness in the strategic adaptation stage.Design/methodology/approachThis is a conceptual paper. Through a critical literature review on new venture survival and organizational memory, the authors identified the possibility for new ventures to learn from other firms from organizational learning and resource-based perspectives.FindingsThe authors found that new ventures can acquire and analyze the existing rivals' strategic moves documented in multiple sources, such as published yearbook, financial report, media, etc., and develop their own strategies. New ventures can also benefit from the relatively high degree of organizational inertia of existing rivals.Practical implicationsNew venture survival and performance are substantially affected by the initial organizational learning and strategic decision-making. Applying the memory-inconsistent strategy (MIS), new ventures that lack competitive experiences can learn from their rivals by internalizing the rivals' competitive memory as strategic resources and utilizing such resources to develop a competitive strategy.Originality/valueNew venture research in competitive markets focuses on the challenges and difficulties due to the lack of experiences, neglecting the fact that new ventures can learn from competitive memories of existing rivals. However, the lack of competitive experiences also means a lower degree of organizational inertia and other strategic commitments. The authors introduce the MIS and suggest that new ventures can benefit from strategic flexibility and create a temporary competitive advantage by surprising existing firms.

scholarly journals Gender differences and new venture performance

2020 ◽  
Vol 23 (1) ◽  
pp. 41-61
Author(s):  
Mayank Jaiswal
Keyword(s):  
Work Experience ◽  
New Ventures ◽  
New Venture ◽  
Decomposition Techniques ◽  
Performance Gap ◽  
Content Type ◽  
Point Estimates ◽  
The Usa ◽  
And Performance ◽  
The Individual

PurposeThis study compares the performance of female majority-owned new ventures (FNV) vs. male majority-owned new ventures (MNV). It analyzes the differences in levels of variables such as education, the same industry work experience of owners, and other venture level attributes between FNVs and MNVs. More importantly, this study employs decomposition techniques to determine the individual contribution from the intergender difference of each attribute on the performance of the new venture. For example, the study finds that, on average, the owners of an MNV possessed 3.4 years more of the same industry work experience than their FNV counterparts. This difference in work experience accounted for 47% of the “explained” gap [1] in Net Profits between the FNVs and MNVs.Design/methodology/approachThis paper utilizes the Kauffman Firm Survey, a longitudinal dataset of 4,928 new ventures started in the USA in 2004. It employs Blinder-Oaxaca and Fairlie decomposition techniques in conjunction with OLS and Logit regressions. Both methods provide point estimates of contributions to the performance gap due to the heterogeneity in each attribute across the groups (FNV and MNV). This approach has a significant advantage over OLS or mediation analysis, which can only provide a directional analysis of the contributions of differences in attributes to performance.FindingsThe paper finds no performance gap between MNVs and FNVs. It further investigates whether the heterogeneous characteristics of MNVs vs FNVs are related to different effects on survival and performance. It finds that characteristics such as owners’ work experience in the same industry, average hours worked by owners in the new venture, the technology level of the venture, and its incorporation status are related with a differential impact on new venture survival and performance.Research limitations/implicationsAll firms in the dataset belonged to a single cohort (2004) of new ventures started in the US. Future studies are encouraged to develop a dataset from multiple geographies and founding over several years so that the results may be more generalizable.Practical implicationsThe paper provides crucial practical guidance to policymakers, investors, and entrepreneurs. In general, policies that enhance the work experience of women entrepreneurs and provide access to infrastructure such as daycares, which may allow them to work more hours, would probably improve the performance of FNVs.Originality/valueThe paper furthers the literature on women entrepreneurship by analyzing point estimates of differential contribution of disparate variables to performance. From a methodological perspective, the study reconciles the results between regression and decomposition analyses.

Early stage network engagement strategies in the network capability development of new ventures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helen McGrath ◽  
Thomas O'Toole
Keyword(s):  
Social Network ◽  
Business Strategy ◽  
Early Stage ◽  
New Ventures ◽  
New Venture ◽  
Capability Development ◽  
Content Type ◽  
Study Approach ◽  
Engagement Strategies ◽  
Network Capability

Purpose The purpose of this paper is to identify the early stage network engagement strategies that new ventures use to gain traction in interaction in the development of network capability. Design/methodology/approach Using 24 new ventures in the micro-brewing industry in Ireland, Belgium and the USA as an empirical base, the authors use an inductive case study approach owing to the exploratory nature of the research aim and the lack of prior literature in the area. Findings The findings suggest five early stage network engagement process strategies in network capability development: business-to-business network prospecting; co-branding/co-promoting activities; from maker-mindset to adapting; social media platforming; and recognition and activation of network role. Research limitations/implications The findings are limited to the micro-brewery sector at one point in time, although in multiple country contexts. Analyzing other sectors and taking a temporal view of strategizing, analyzing the sector at another time point, would show how dynamics in engagement change as the actors acquire new experiences from interaction. Practical implications The potential to gain from network resources and the paucity of these resources in new ventures makes early stage engagement strategizing for network capability development an attractive business strategy for new firms. All firms are born within a social network that has economic importance. Identifying the five early stage network engagement strategies can mitigate the challenge for the new venture in moving from the initial social network to collaborating within wider business networks to gain access to resources, technology and customers. Originality/value Strategizing in new venture contexts is a relatively new stream of research for the industrial marketing and purchasing group. This paper adds to the growing body of literature that places interaction, relationships and networks at the heart of strategy making and provides important insights for new ventures, which may lead to earlier and greater success for the firms. The authors respond to calls for increased research addressing capability development in a new venture context and for research to take a more interactive perspective on new venture processes.

Responding to organizational identity change: ethnographic insights from multinational hotel subsidiaries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sandra Sun-Ah Ponting
Keyword(s):  
Organizational Identity ◽  
Participant Observation ◽  
Internal Communication ◽  
Hospitality Management ◽  
Organizational Memory ◽  
Multiple Sources ◽  
Content Type ◽  
Emotional Challenges ◽  
Organizational Ethnography ◽  
History Of

Purpose This paper aims to use an organizational ethnography perspective to explore how subsidiary hotel properties of a multinational hotel corporation experience planned organizational identity (OI) change instituted by headquarters. Design/methodology/approach This study uses a multi-site approach to collect ethnographic data on organizational change from six hotel subsidiaries in California, USA. Over three years, multiple sources of data were collected including: 31 interviews with hotel subsidiary leaders; more than 100 participant observation hours including job shadows, conferences and meetings; and photographs and internal communication materials. Findings Multinational hospitality companies face struggles between corporate standardization and subsidiary localization. This paper reveals that when headquarters plan changes focused on employees at their subsidiaries, the ways the latter initially accept and resist change are significantly impacted by the organizational memory and history of subsidiary leaders. However, as time progressed, properties with strong financial performance continued to operationalize new identity initiatives while properties with poorer profit margins played a balancing act between headquarters’ visionary identity and subsidiary ownership’s revenue expectations. Additionally, the situational realities caused by the COVID-19 pandemic put a halt to all properties which amplified practical and emotional challenges of organizational ethnography in hospitality research. Originality/value This paper contributes to hospitality literature by introducing an under-researched concept, OI change and advances understanding of the struggles in managing multinational company change. More importantly, this paper is a stepping stone for future hospitality management to embark on organizational ethnography.

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.

Does entrepreneurial experience always promote novelty-centered business model design in new venture?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lingling Wang ◽  
Wenhong Zhao ◽  
Zelong Wei ◽  
Changbao Zhou
Keyword(s):  
Business Model ◽  
New Ventures ◽  
New Venture ◽  
Hierarchical Regression ◽  
Model Design ◽  
Competitive Intensity ◽  
Content Type ◽  
Entrepreneurial Experience ◽  
Negative Effect ◽  
Business Model Design

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.

Market orientation and women-owned SMEs performance

2020 ◽  
Vol 9 (2) ◽  
pp. 215-234 ◽  
Author(s):  
Muhammad Amir Rashid ◽  
Masood Nawaz Kalyar ◽  
Imran Shafique
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Strategic Decision ◽  
Hierarchical Regression ◽  
Full Potential ◽  
Survey Questionnaire ◽  
Content Type ◽  
And Performance ◽  
Practical Implications

PurposeThis research aims to investigate the contingent effect of entrepreneurial orientation (EO) and strategic decision responsiveness (SDR) on the link of market orientation (MO) and performance of women-owned small and medium-sized enterprises (WSMEs).Design/methodology/approachData were collected from 909 WSMEs of Punjab province Pakistan through survey questionnaire. Hierarchical regression is employed to perform the analysis.FindingsResults reveal that although higher-level dimensions of MO directly affect the WSMEs performance, however this linkage becomes stronger under SDR and higher-level dimensions of EO.Practical implicationsManagers should emphasis on the demonstration of EO's dimensions and SDR to utilize the full potential of MO to promote WSMEs performance.Originality/valueTo study the contingent effect of SDR and EO's dimensions in the MO–WSMEs performance nexus is the novelty of this study.

The emergence of the customer relationship portfolio of a new venture: a networking process

2019 ◽  
Vol 34 (5) ◽  
pp. 1066-1078 ◽  
Author(s):  
Antonella La Rocca ◽  
Andrea Perna ◽  
Andrea Sabatini ◽  
Enrico Baraldi
Keyword(s):  
Single Case ◽  
New Ventures ◽  
Cumulative Effect ◽  
Customer Relationships ◽  
Customer Relationship ◽  
New Venture ◽  
Supplier Relationships ◽  
Content Type ◽  
Early Relationships ◽  
Network Capability

Purpose While several studies have focused on the initial phases of new ventures and their first customer and supplier relationships, we have a limited understanding of how the new venture’s portfolio of customer relationships emerges. This paper aims to explore the emergence of the customer relationship portfolio of a new venture and to investigate the effects of early relationships on subsequent ones. Design/methodology/approach Methodologically, the authors rely on a longitudinal single case study of a new venture which develops, implements and sells customized cost-management software. The study is exploratory and based on 24 in-depth interviews. Findings The findings show that the development of a customer portfolio depends on the cumulative effect of heterogeneous elements and network connections. These include the initial link between the new venture and the first customer and a subsequent series of interconnections that develop with the emerging network capability of the new venture. Originality/value As one of the few studies that explore the emergence of new ventures’ customer relationship portfolio, this study demonstrates the value of applying a relational/network approach for studying relationship portfolio dynamics.

Enabling continuous learning and quality improvement in health care

2018 ◽  
Vol 31 (6) ◽  
pp. 587-599 ◽  
Author(s):  
Robert William Smith ◽  
Elaina Orlando ◽  
Whitney Berta
Keyword(s):  
Quality Improvement ◽  
Organizational Learning ◽  
Performance Management ◽  
Future Research ◽  
Performance Management System ◽  
Continuous Learning ◽  
Learning Models ◽  
Content Type ◽  
Organizational Learning Theory ◽  
And Performance

Purpose The purpose of this paper is to examine how the design and implementation of learning models for performance management can foster continuous learning and quality improvement within a publicly funded, multi-site community hospital organization. Design/methodology/approach Niagara Health’s patient flow performance management system, a learning model, was studied over a 20-month period. A descriptive case study design guided the analysis of qualitative observational data and its synthesis with organizational learning theory literature. Emerging from this analysis were four propositions to inform the implementation of learning models and future research. Findings This performance management system was observed to enable: ongoing performance-related knowledge exchange by creating opportunities for routine social interaction; collective recognition and understanding of practice and performance patterns; relationship building, learning for improvement, and “higher order” learning through dialogue facilitated using humble inquiry; and, alignment of quality improvement efforts to organizational strategic objectives through a multi-level feedback/feed-forward communication structure. Research limitations/implications The single organization and descriptive study design may limit the generalizability of the findings and introduce confirmation bias. Future research should more comprehensively evaluate the impact of learning models on organizational learning processes and performance outcomes. Practical implications This study offers novel insight which may inform the design and implementation of learning models for performance management within and beyond the study site. Originality/value Few studies have examined the mechanics of performance management systems in relation to organizational learning theory and research. Broader adoption of learning models may be key to the development of continuously learning and improving health systems.

Impacts of regulatory focus and institutions on innovation

2018 ◽  
Vol 56 (5) ◽  
pp. 939-954 ◽  
Author(s):  
Birton J. Cowden ◽  
Joshua S. Bendickson
Keyword(s):  
Regulatory Focus ◽  
New Ventures ◽  
New Venture ◽  
Institutional Setting ◽  
Prevention Focus ◽  
Content Type ◽  
Institutional Settings ◽  
Cognitive Motivations ◽  
The Impact ◽  
Shed Light

Purpose Many factors influence entrepreneurs, some of which influence the level of innovation (i.e. innovative or imitative) of new products or services pursued. The purpose of this paper is to explore the impact of the psychological motivations of the entrepreneurs and their institutional setting on the innovativeness of the new venture they pursue. Through this exploration, we can gain a better understanding of how innovative new ventures still occur in varying institutional environments. Design/methodology/approach In order to deliver the authors’ propositions as they pertain to innovation, the authors review the literature on entrepreneurs’ default regulatory focus (i.e. promotion or prevention seeking) and the strength of the institutions in which they are operating. Findings The authors theorize that promotion focus enhances innovativeness of ventures while prevention focus enhances imitativeness of ventures. The authors also provide a conceptual framework for the interplay among institutions and regulatory focus and provide a typology for how these varying combinations impact innovativeness or imitativeness of venture type. Originality/value In this study, the authors discuss and unpack the entrepreneurial mindset in order to bridge gaps between institutions and cognitive motivations of entrepreneurs as they pertain to innovativeness of venture type. By synthesizing several areas of research, the authors shed light on entrepreneurs’ innovativeness by proposing how these factors work together in determining whether an entrepreneur’s venture is more or less innovative based on regulatory disposition and in different institutional settings.

Is business planning useful for the new venture emergence?

2018 ◽  
Vol 12 (4) ◽  
pp. 847-870 ◽  
Author(s):  
Ya-long Wei ◽  
Dan Long ◽  
Yao-kuang Li ◽  
Xu-sheng Cheng
Keyword(s):  
Early Stage ◽  
Contextual Factors ◽  
New Ventures ◽  
Panel Study ◽  
Binary Logistic Regression ◽  
New Venture ◽  
Business Planning ◽  
Content Type ◽  
Innovative Products ◽  
The Impact

Purpose The purpose of this paper is to build a research model to examine the effects of business planning on the new venture emergence, as well as to examine the moderating effects of innovativeness of products. Design/methodology/approach Four hypotheses are put forward and examined by hierarchical binary logistic regression. The data of this paper are based on the first two waves of data from Chinese Panel Study of Entrepreneurial Dynamics project. Findings Results show that engaging in business planning has a positive effect on the new venture emergence, and the timing of business planning does not affect the new venture emergence significantly. This study also finds that the innovativeness of products has a positive moderating effect on the relationship between the timing of business planning and the new venture emergence. Research limitations/implications This study has some limitations. The innovativeness of products is measured by a single indicator, which may not completely reflect the meaning of the attribute. Moreover, this study explores new ventures only in the nascent stage. Practical implications The study is useful for entrepreneurs to realize the importance of business planning. First, engaging in business planning in early start-up stage is a very valuable activity, because business planning can help new ventures reduce the loss caused by trial and error learning. Second, engaging in business planning is more likely to ensure high innovative products quickly be accepted by the market. Because in the process of new venture emergence, the legitimacy signal to stakeholders can be transmitted and new products can be promoted to get support and recognition from stakeholder through the business plan. Originality/value This paper focuses on the early stage of new venture life cycle and the contextual factors to explore the influence of business planning on the new venture emergence under the logic of legitimacy. This paper could enrich business planning research from the perspective of legitimacy theory by inspiring scholars to focus on the differences between new ventures and mature enterprises and to offer proposals of legitimation strategies suitable for new ventures. Meanwhile, this study contributes to the understanding of the contextual factors of business planning. And it discusses the impact of the attribute in business planning on the new venture emergence, which helps scholars to get a deep thought about the value of business planning in entrepreneurial process.

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