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.

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.

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’ Empathy in New Venture Performance: The Mediating Effects of Entrepreneurial Orientation

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Wenhong Zhao ◽  
Siyao Lyu ◽  
Tomoki Sekiguchi
Keyword(s):  
Perspective Taking ◽  
Entrepreneurial Orientation ◽  
New Ventures ◽  
Empathic Concern ◽  
New Venture ◽  
Curvilinear Relationship ◽  
Mediating Effects ◽  
Firm Level ◽  
Venture Performance ◽  
New Venture Performance

Abstract Previous research has found that entrepreneurs’ empathy promotes personal opportunity identification. However, the role that entrepreneurs’ empathy plays at the firm level in new ventures is still unclear. This study explores this question by investigating how perspective taking and empathic concern, which respectively represent the cognitive and affective component of entrepreneurs’ empathy, influence new venture performance with the mediating effects of entrepreneurial orientation (EO). Based on an empirical study with 341 new ventures, this research finds a positive relationship between perspective taking and new venture performance and a curvilinear relationship between empathic concern and new venture performance. In addition, both of these relationships are mediated by EO. This study sheds light on distinct impacts of the entrepreneur’s perspective taking and empathic concern at the firm level, enriches the antecedents of EO from the cognitive and affective factors of the entrepreneur, and extends the implications of the entrepreneur’s altruistic dispositions in commercial start-ups.

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.

scholarly journals Entrepreneurial orientation and new venture performance in emerging markets: the mediating role of opportunity recognition

2021 ◽  
Author(s):  
Muhammad Anwar ◽  
Thomas Clauss ◽  
Wunnam Basit Issah
Keyword(s):  
Entrepreneurial Orientation ◽  
New Ventures ◽  
Opportunity Recognition ◽  
New Venture ◽  
Superior Performance ◽  
Mediating Role ◽  
Venture Performance ◽  
The Relationship ◽  
New Venture Performance

AbstractHow entrepreneurial orientation facilitates the identification of new opportunities in newly established ventures in emerging economies remains largely unexplored. Approaching entrepreneurial orientation as a second order latent construct, we examined the mediating role of opportunity recognition on new venture performance. Using a survey data from 316 SMEs, the results of the analysis in SmartPLS highlights that entrepreneurial orientation indirectly contributes to the performance of new ventures, where the relationship is partially mediated by opportunity recognition. The findings show that firms with high entrepreneurial orientation can identify and exploit new opportunities as well as enjoy superior performance.

Networking and new venture’s performance: mediating role of competitive advantage

2018 ◽  
Vol 13 (5) ◽  
pp. 998-1025 ◽  
Author(s):  
Muhammad Anwar ◽  
Atiq Ur Rehman ◽  
Syed Zulfiqar Ali Shah
Keyword(s):  
Competitive Advantage ◽  
New Ventures ◽  
New Venture ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Venture Performance ◽  
Business Networking ◽  
New Venture Performance

Purpose The purpose of this paper is to investigate the effect of different types of networking, namely, business networking, financial networking and political networking, on the performance of new ventures and the extent to which competitive advantage influences the process. Design/methodology/approach Data were collected through a structured questionnaire using sample size of 319 newly established ventures in Pakistan – an emerging economy. The hypotheses were tested with structural equation modeling by using AMOS 21. Findings Results of the study indicate that business networking, financial networking and political networking significantly and positively contribute to new ventures performance and competitive advantage. Results also show that competitive advantage is a strong mediator between financial networking and new venture performance, as well as between business networking and new venture performance, respectively. However, in case of relationship between political networking and new venture performance, competitive advantage plays only a partial mediating role. Practical implications The study suggests that the owners and managers of new ventures should devote considerable efforts to developing all the three types of networks; in particular these networks are important for newly established ventures operating in emerging markets to access resources and to enhance performance. Originality/value Extensive review of available literature indicates that this is the first paper to assess the impact of networking on new ventures’ performance with a mediating role of competitive advantage. This study contributes to the existing literature through empirical evidence.

Impact of entrepreneurial orientation on the performance of new ventures in China: the roles of entrepreneurial bricolage and opportunity recognition

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tiannv Ma ◽  
Siying Yang
Keyword(s):  
Entrepreneurial Orientation ◽  
New Ventures ◽  
Dynamic Environment ◽  
Opportunity Recognition ◽  
New Venture ◽  
Content Type ◽  
Venture Performance ◽  
Entrepreneurial Bricolage ◽  
The Relationship ◽  
New Venture Performance

Purpose This study aims to examine how entrepreneurial orientation affects new venture performance in a dynamic environment. The authors examine whether entrepreneurial bricolage and opportunity recognition mediate the effect of entrepreneurial orientation on new venture performance and whether environmental dynamics moderate the above effects. Design/methodology/approach This study uses questionnaires to collect data. The sample includes responses of managers from 274 new Chinese ventures. Regression analysis and bootstrapping are used to test the hypotheses. Findings Entrepreneurial bricolage and opportunity recognition play mediating roles between entrepreneurial orientation and new venture performance. Environmental dynamism positively moderates the relationship between opportunity recognition and new venture performance. Practical implications In a dynamic environment, new ventures should strengthen their entrepreneurial orientation, which would gradually improve their performance by improving their entrepreneurial bricolage and opportunity recognition ability. Originality/value This study innovatively explains the relationship between entrepreneurial orientation and new venture performance from the perspectives of “flexible solutions to current problems” and “discovering and grasping potential new opportunities.” It does so by using the concepts of entrepreneurial bricolage and entrepreneurial opportunity identification in the context of a dynamic environment.

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.

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