The effect of perceived legitimacy on new venture growth in Japan: a moderated mediation approach

2020 ◽  
Vol 27 (3) ◽  
pp. 427-447
Author(s):  
Norifumi Kawai ◽  
Mirela Xheneti ◽  
Tomoyo Kazumi
Keyword(s):  
Indirect Effect ◽  
Process Model ◽  
New Ventures ◽  
Moderated Mediation ◽  
New Venture ◽  
Causal Process ◽  
Cross Sectional ◽  
Content Type ◽  
Positive Effects ◽  
New Venture Growth

PurposeThis article seeks to theorize and empirically examine the conditional mechanisms through which entrepreneurial legitimacy determines the success or failure of new ventures by building upon Zimmerman and Zeitz's (2002) causal process model of legitimacy.Design/methodology/approachWe gathered cross-sectional data from 266 Japanese new venture owners running their businesses across a variety of sectors and empirically examined whether, how and when legitimacy positively affects new ventures' performance by employing the SPSS PROCESS macro for moderated mediation analysis.FindingsThe results indicate that rich access to a pool of valuable resources fully mediates the positive effects of legitimacy on new venture growth. Furthermore, this study offers robust empirical evidence that prior entrepreneurial experience and competitive intensity as the internal and external contingency factors significantly moderate the indirect effect of legitimacy on new venture growth through resource accessibility.Research limitations/implicationsAlthough our analysis provides clear support for the view that important resources for new venture performance are gained through legitimacy, it does not offer precise clarifications for the type and sources of legitimacy and for the strategies that could be deployed to achieve legitimacy. Future studies should clearly distinguish tangible assets (e.g. financial resources) from intangible assets (e.g. tacit knowledge, networks and reputation) in terms of resource accessibility. Therefore, it should be worth scrutinizing the multiple dimensions of resources as potential mediators of the legitimacy-new venture growth relationship in greater depth.Practical implicationsFrom a policy perspective, this study suggests that a special emphasis needs to be placed on designing and carrying out policies aimed at increasing the visibility and credibility of entrepreneurship as a positive career path since public acceptance of entrepreneurship is essential to new venture growth. Furthermore, it is logical to conclude that achieving greater legitimacy is a pivotal strategic tool not only to overcome resource barriers but also to maximize a probability of survival, specifically for those entrepreneurs without prior experience and those operating in a fiercely competitive market environment.Originality/valueUnlike previous studies that have mostly presented the direct effect of entrepreneurial legitimacy on venture outcomes (Capelleras et al., 2019; Kibler and Kautonen, 2016; Pindado and Sánchez, 2017), our research empirically identified the potential complexities inherent in this relationship by performing a conditional indirect effect analysis.

Linking interactional injustice to EVLN outcomes

2019 ◽  
Vol 28 (2) ◽  
pp. 488-506 ◽  
Author(s):  
Arpana Rai ◽  
Upasna A. Agarwal
Keyword(s):  
Indirect Effect ◽  
Psychological Contract ◽  
Service Sector ◽  
Moderated Mediation ◽  
Full Time ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
Moderated Mediation Model ◽  
Cross Sectional Design

Purpose The study aims to examine a moderated mediation model of effects of conscientiousness on the mediating role of psychological contract violation (PCV) on interactional injustice and employees EVLN (exit, voice, loyalty and neglect) outcomes relationships. Design/methodology/approach A sample of 422 full-time managerial employees working across different service sector-based Indian organizations was used to test the proposed moderated mediation. The analysis was performed using Hayes’ Process Macro. Findings Results revealed that (i) the effect of interactional injustice on employee EVLN outcomes is mediated through PCV and (ii) the strength of this indirect effect is dependent on individual differences in conscientiousness. As such, the overall pattern of relationships supported moderated mediation, in that, the indirect effect of interactional injustice on voice and loyalty through PCV was stronger for employees high (as compared with those low) in conscientiousness. Research limitations/implications A cross-sectional design and use of self-reported questionnaire data in the sample are a few limitations of the study. Originality/value This study advances the existing literature on interactional injustice by extending its range of outcomes as well as by examining the underlying and intervening conditions in the interactional injustice-outcomes relationship.

Silicon Valley’s Indian diaspora: networking and entrepreneurial success

2015 ◽  
Vol 4 (2) ◽  
pp. 190-208 ◽  
Author(s):  
Anuradha Basu ◽  
Meghna Virick
Keyword(s):  
Social Networks ◽  
Silicon Valley ◽  
Cross Sectional Study ◽  
New Venture ◽  
High Tech ◽  
Entrepreneurial Success ◽  
Indian Diaspora ◽  
Cross Sectional ◽  
Content Type ◽  
New Venture Growth

Purpose – The purpose of this paper is to examine the factors that influence the success of entrepreneurial ventures started by members of the Indian diaspora in Silicon Valley. Design/methodology/approach – It is based on survey data collected from Indian-born high-tech entrepreneurs living in Silicon Valley, and uses Bayesian estimation to test hypotheses aimed at understanding entrepreneurial growth. Specifically, the paper examines the linkages between prior startup experience, participation in diasporic networks, and new venture growth. Findings – It finds that entrepreneurs with prior startup experience displayed more active participation in diasporic networks, and were more likely to have co-founders. Active network participation over a length of time was positively related to new venture growth. The findings contribute toward the understanding of the value of startup experience in leveraging social networks, and the relationship between diasporic network participation and entrepreneurship. Research limitations/implications – As a cross-sectional study with a single data source, it is subject to concerns about causality and common method variance. Practical implications – The results highlight the value of serial entrepreneurship and the potential benefits to immigrant entrepreneurs of participating in diasporic social networks, especially those with a global reach. They also suggest that investors would be better off investing in entrepreneurs who have greater startup experience and participate actively in diasporic networks. Originality/value – The paper is based on a very unique sample of Indian-born immigrant high-tech entrepreneurs based in the Silicon Valley. It provides a deeper understanding of the role of diasporic social networks, and their relationship with prior startup experience and entrepreneurial success within that context.

scholarly journals An ethnographic study of new venture and new sector legitimation

2016 ◽  
Vol 11 (1) ◽  
pp. 72-88 ◽  
Author(s):  
Romeo V. Turcan ◽  
Norman M. Fraser
Keyword(s):  
Process Model ◽  
New Ventures ◽  
Political Legitimacy ◽  
Emerging Economy ◽  
Ethnographic Study ◽  
New Venture ◽  
International New Ventures ◽  
Content Type ◽  
Policy Objectives ◽  
New Industry

Purpose – The purpose of this paper is to explore the process of legitimation of international new ventures (INVs) from an emerging economy and the effect such ventures have on the process of creation and legitimation of a new industry in that economy. Design/methodology/approach – It is a longitudinal ethnographic case study. Following an inductive theory building approach, data were collected over an 11-year period via in-depth interviews, participant observations and unobtrusive data. Findings – Data reveal three different contexts in which legitimation takes place: legitimation of the new industry and of the new venture domestically and internationally. A new venture drives the process of industry legitimation by achieving legitimacy threshold first nationally at meso and micro levels as well as internationally. The challenge therefore for such a venture is to establish legitimacy in the absence of any precedents at the organization, industry or international levels. Unless at least one new venture achieves legitimacy threshold in a new industry there is no possibility for that industry to become institutionalized. Research limitations/implications – The authors advocate for further research at the intersection between legitimation, international entrepreneurship and emerging markets in order to further advance the emergent theory. Practical implications – The data suggest that in order for an INV to achieve cognitive legitimacy and socio-political legitimacy in an emerging industry located in an emerging economy, and successfully internationalize, it shall design a robust business model targeting both internal and external stakeholders; engage in persuasive argumentation invoking familiar cues and scripts; engage in political negotiations promoting and defending incentive and operating mechanisms; and overcome the country-of-origin effect by pursuing technology legitimation strategy. Social implications – Governments and NGOs may wish to see new industries emerge but they lack the means and mandate to establish and lead them themselves, instead rely on enabling actions, such as investment in capacity building. However, building capacity for an as-yet non-existent industry in an emerging economy may prove to be counter-productive, driving a brain drain of qualified workers who are forced to migrate to find suitable work. The work leads the authors to speculate about whether there may be a role for investment in programs of industry legitimacy building in pursuit of public policy objectives. Originality/value – The study puts forward a process model of new industry legitimation. The model theorizes the process of change from an initial condition in which an industry does not exist to a final condition in which it is institutionalized. The model addresses the case where the initial catalyst is the formation of an INV that is the seed for the birth of the industry. Since both the new venture and the new industry lack cognitive and socio-political legitimacies, the model theorizes temporal emergence of these at organizational and industry levels, leading ultimately to institutionalization.

scholarly journals The moderating effect of founding assets on the founders’ human capital

2019 ◽  
Vol 22 (2) ◽  
pp. 126-142 ◽  
Author(s):  
Yang Xu
Keyword(s):  
Human Capital ◽  
Firm Growth ◽  
New Ventures ◽  
New Venture ◽  
Policy Makers ◽  
Content Type ◽  
Highly Educated ◽  
Positive Effects ◽  
Final Sample ◽  
Prior Literature

Purpose The purpose of this paper is to investigate into the conditions under which founders’ human capital (HC) benefits new venture growth (NVG). One such condition is investigated in this study – initial assets at founding. Specifically, founding assets are hypothesized to moderate the relationship between founders’ HC and NVG. Design/methodology/approach The longitudinal panel database from the Kauffman Firm Survey for the period 2004–2011 was used to test the hypotheses. The final sample consisted of 4,923 firms, with 34,461 observations made over seven years. Findings The regression analysis found the effect of founders’ HC on NVG and the moderating role of founding assets in the HC–NVG relationship. Research limitations/implications New ventures benefit even more from founders’ education level, industry and startup experiences when the startups have larger assets at founding. The effect of founders’ education and experiences on startup growth is contingent upon the initial assets at founding. Practical implications The results of this study can help practitioners and policy makers to understand the drivers of NVG and the interactions among these drivers. Growth-oriented startups may require a large investment in founding assets such as production facilities. Startups with fewer founding assets may find it particularly difficult to negotiate with external stakeholders and may face unusually intense competitive responses from competitors. Policy makers should tailor the support to the founding conditions of new firms. Originality/value The prior literature has shown mostly the independent positive effects of various resources on firm growth. This study argues and empirically shows that startups grow faster when founders with high HC have more assets to utilize. The resource-based view literature was expanded by adding important new causal mechanisms, enriching our understanding of how founders’ HC interact with founding assets, jointly affecting NVG. Like a big fish in a small pond, even highly educated and experienced entrepreneurs have limited opportunities to utilize their talents in a startup with a lower initial resource position.

The optimism-pessimism ratio as predictor of employee creativity: the promise of duality

2018 ◽  
Vol 21 (3) ◽  
pp. 423-442 ◽  
Author(s):  
Arménio Rego ◽  
Miguel Pina e Cunha ◽  
Dálcio Reis Júnior ◽  
Cátia Anastácio ◽  
Moriel Savagnago
Keyword(s):  
Cross Sectional ◽  
Content Type ◽  
Future Studies ◽  
Positive Effects ◽  
The Status ◽  
Single Moment ◽  
Quasi Experimental ◽  
Creativity And Innovation ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to study if the employees’ optimism-pessimism ratio predicts their creativity. Design/methodology/approach In total, 134 employees reported their optimism and pessimism, and the respective supervisors described the employees’ creativity. Findings The relationship between the optimism-pessimism ratio and creativity is curvilinear (inverted U-shaped); beyond a certain level of the optimism-pessimism ratio, the positive relationship between the ratio and creativity weakens, suggesting that the possible positive effects of (high) optimism may be weakened by a very low level of pessimism. Research limitations/implications Being cross-sectional, the study examines neither the causal links between the optimism-pessimism ratio and creativity nor other plausible causal links. The study was carried out at a single moment and did not capture the dynamics that occur over the course of time involving changes in optimism/pessimism and creativity. Future studies may adopt longitudinal or quasi-experimental designs. Practical implications Managers and organizations must consider that, even though positivity promotes creativity, some level of negativity may help positivity to produce creativity. Originality/value This study suggests that scholars who want to study the antecedents of creativity (and innovation) must be cautious in focusing only on the positive or the negative sides of individuals’ characteristics, and rather they must explore the interplay between both poles. Individuals may experience both positive and negative states/traits (Smith et al., 2016), and this both/and approach may impel them to think divergently, to challenge the status quo and to propose “out the box” and useful ideas.

Towards a design theory of computer-supported organizational participation

2017 ◽  
Vol 30 (1) ◽  
pp. 188-202 ◽  
Author(s):  
Thomas Wagenknecht ◽  
René Filpe ◽  
Christof Weinhardt
Keyword(s):  
Design Theory ◽  
Process Model ◽  
Work Conditions ◽  
Information Management System ◽  
Future Research ◽  
Expert Interviews ◽  
Content Type ◽  
Organizational Participation ◽  
Positive Effects ◽  
Expert Interview

Purpose Employees demand high responsibility and empowerment, while keeping their work communal and flexible. Initiatives that foster organizational participation (OP) can contribute to the fulfillment of such work conditions. Research in sociology and psychology demonstrated positive effects on job satisfaction as well as on productivity. However, adoption of social software is widely spread in firms, research on the determinants of computer-supported OP is scarce. The purpose of this paper is to describe the elements to consider when designing OP processes that aim to be beneficial for both the employer as well as the employees. Design/methodology/approach The authors conducted 20 guided expert interviews to propose a nascent design theory, following a socio-technical approach that promotes democratic and humanistic principles. Findings Building on the expert interview, the process model includes a topic horizon and a collaboration phase, which creates proposals that have to be decided in order to produce results. The authors show how employee competence and leadership commitment are as important as the workload and support as well as an option for anonymous communication. The authors propose a set of features and explain principles of implementation. Research limitations/implications Despite the authors’ best efforts to diversify the authors’ set of experts, the findings have a limited generalizability as the authors only interviewed a few selected German experts that were either members of the board, HR or IT managers, often concerned with organizing rather than only participating in computer-supported organizational participation (CSOP) processes. Besides testing the model in practise, future research should also consider surveying a broader (and more international) set of employers and employees. Practical implications The authors propose a step-by-step procedure to introduce CSOP. Despite identifying many pitfalls, the research demonstrates that CSOP promises a wide variety of benefits to both employers as well as the employees of an organization, including increased satisfaction as well as productivity. Originality/value This is one of the first studies to propose a nascent design theory for CSOP. The authors derive a number of requirements to consider when implementing an information management system that seeks to improve both the efficiency and equality of employers and employees and lead to a win-win situation for both. The authors describe valid constructs for firms with spatially and timely dispersed teams and more than 50 employees. The research is based on 20 expert interviews, conducted with senior managers of medium and large German enterprises.

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.

Examining the effect of training and employee creativity on organizational innovation: a moderated mediation analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Akriti Chaubey ◽  
Chandan Kumar Sahoo ◽  
Kishore Chandra Das
Keyword(s):  
Organizational Climate ◽  
Structural Equation ◽  
Organizational Innovation ◽  
Moderated Mediation ◽  
Mediating Effect ◽  
Mediation Process ◽  
Employee Creativity ◽  
Cross Sectional ◽  
Automotive Manufacturing ◽  
Content Type

Purpose The purpose of this study to understand the effects of training and creativity on organizational innovation under the moderating influence of the organizational climate. Design/methodology/approach The theoretical model is grounded in the contingent resource-based view. To test the research hypotheses, this paper has gathered the cross-sectional data using a single informant pre-tested questionnaire. The data were collected from respondents working in Indian automotive manufacturing organizations. The data were further tested for the normality criteria followed by hypotheses testing using co-variance-based structural equation modelling Statistical Package for Social Sciences (SPSS), 2010. Findings The relationship between training and organizational innovation was leveraged by employee creativity, which acts as a mediator between the two. Moreover, the organizational climate augments the mediation process by coherently creating a positive moderating influence. Practical implications This study provides prospective insights to management leaders and practitioners by establishing how training can bring about positive change in the innovative front of the organization. It also offers keys to the organizations for an active engagement of the employees through a supporting climate conducive for harnessing of individual creativity and innovative potential. Originality/value This is the first endeavour made to examine the moderated mediation influence of organizational climate on training and employee creativity, by studying the mediating effect of employee creativity between training and organizational innovation.

How vendor capabilities impact IT outsourcing performance

2019 ◽  
Vol 32 (2) ◽  
pp. 325-344 ◽  
Author(s):  
Meng-Meng Wang ◽  
Jian-Jun Wang
Keyword(s):  
Indirect Effect ◽  
Least Squares Method ◽  
It Outsourcing ◽  
Learning Capability ◽  
Content Type ◽  
Positive Effects ◽  
Moderated Mediation Model ◽  
Underlying Mechanisms ◽  
Internal Integration ◽  
Partial Least Squares Method

Purpose The purpose of this paper is to explore the underlying mechanisms through which integration capability and learning capability influence IT outsourcing performance from vendor’s perspective. Design/methodology/approach This paper develops a moderated mediation model to explain the underlying influence processes of integration capability and learning capability on vendor’s performance. A sample of 237 vendor firms was obtained from China through two separated surveys. The hypotheses were tested with the partial least squares method and bias-corrected bootstrapping method. Findings The empirical results indicate that external integration capability (EIC) mediates the effect of internal integration capability (IIC) on vendor outsourcing performance, and the relationship between EIC and vendor performance is positively moderated by learning capability, while learning capability has a negative moderating effect on the link between IIC and vendor performance. Further, the conditional indirect effect is suggested. The indirect effect of IIC on vendor performance through EIC becomes non-significant when learning capability is low. Originality/value This study highlights the counterintuitive notion that learning capability may not always have uniformly positive effects and figure out the mechanism through which integration capability and learning capability can effectively improve IT outsourcing performance.

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.

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