NEW VENTURES AS SUPPLIERS: THE BUILDING OF TRUST WITH INDUSTRIAL CUSTOMERS

1998 ◽  
Vol 06 (04) ◽  
pp. 369-390 ◽  
Author(s):  
LEIF SANNER
Keyword(s):  
New Ventures ◽  
Frame Of Reference ◽  
New Venture ◽  
New Business ◽  
External Actors ◽  
Start Ups

The new venture starts in an equivocal situation. To use and build trusted relationships with external actors, notably customers in spe, is an important way for the entrepreneur to establish business. In an inductive in-depth case study between entrepreneurs and customers, trust was studied. For two business start-ups the entrepreneurs' building and use of trust in action processes between the new ventures and some of their customers was investigated covering 5 years. Using a frame of reference concerning new business trust, trustbuilding in action processes is identified in interviews. Patterns of trustbuilding are summarised, conclusions concerning trustbuilding in the cases are presented and discussed. Some possible contributions for practice and theory are outlined.

What's New in the Launching of Start-ups?

2009 ◽  
Vol 23 (2) ◽  
pp. 133-137 ◽  
Author(s):  
Diego Matricano
Keyword(s):  
New Ventures ◽  
Business Environment ◽  
Economic Role ◽  
Globalized Economy ◽  
New Business ◽  
New Thinking ◽  
Experimental Laboratory ◽  
Start Ups ◽  
Research Centres

The exploitation of knowledge and experience is increasingly important to companies operating in the globalized economy, faced with intense competition and striving to make headway in difficult markets. If such exploitation is important for existing companies, able to develop their own knowledge from previous experience, it is critical for new ventures that have no direct real-world experience on which to draw. Would-be entrepreneurs now operate in a very different business environment from that of their predecessors and they need new forms of entrepreneurship education and new methods of pre-launch trial and analysis for start-ups. The transition from ‘nature’ to ‘nurture’ in the approach to and perception of entrepreneurship, coupled with the increasingly engaged economic role of higher education institutions and research centres can be manipulated effectively to improve the prospects for success of high-expectation entrepreneurs. This article demonstrates how Curley and Formica's model of the experimental laboratory for would-be entrepreneurs responds to the new business environment and the new thinking.

scholarly journals The Role of Accelerator Designs in Mitigating Bounded Rationality in New Ventures

2018 ◽  
Vol 64 (4) ◽  
pp. 810-854 ◽  
Author(s):  
Susan L. Cohen ◽  
Christopher B. Bingham ◽  
Benjamin L. Hallen
Keyword(s):  
Bounded Rationality ◽  
New Ventures ◽  
Multiple Case Study ◽  
New Venture ◽  
External Information ◽  
Start Up ◽  
Multiple Case ◽  
Established Firms

Using a nested multiple-case study of participating ventures, directors, and mentors of eight of the original U.S. accelerators, we explore how accelerators’ program designs influence new ventures’ ability to access, interpret, and process the external information needed to survive and grow. Through our inductive process, we illuminate the bounded-rationality challenges that may plague all ventures and entrepreneurs—not just those in accelerators—and identify the particular organizational designs that accelerators use to help address these challenges, which left unabated can result in suboptimal performance or even venture failure. Our analysis revealed three key design choices made by accelerators—(1) whether to space out or concentrate consultations with mentors and customers, (2) whether to foster privacy or transparency between peer ventures participating in the same program, and (3) whether to tailor or standardize the program for each venture—and suggests a particular set of choices is associated with improved venture development. Collectively, our findings provide evidence that bounded rationality challenges new ventures differently than it does established firms. We find that entrepreneurs appear to systematically satisfice prematurely across many decisions and thus broadly benefit from increasing the amount of external information searched, often by reigniting search for problems that they already view as solved. Our study also contributes to research on organizational sponsors by revealing practices that help or hinder new venture development and to emerging research on the lean start-up methodology by suggesting that startups benefit from engaging in deep consultative learning prior to experimentation.

Entrepreneurial education: an entrepreneurial ecosystem approach

2020 ◽  
pp. 1-21
Author(s):  
Delwyn N. Clark ◽  
Sophie Reboud ◽  
Olivier Toutain ◽  
Valérie Ballereau ◽  
Tim Mazzarol
Keyword(s):  
New Ventures ◽  
Ecosystem Approach ◽  
New Venture ◽  
Entrepreneurial Education ◽  
Academic Unit ◽  
Entrepreneurial Ecosystem ◽  
Macroeconomic Policies ◽  
Local Resources ◽  
Novel Approach

Abstract How can an entrepreneurial education program simultaneously create entrepreneurial knowledge, skills and competencies, as well as new ventures and jobs? This is a particular challenge for universities that are keen to align with government policies and demonstrate impact. Our paper examines a novel approach to enterprise and entrepreneurship education that integrates training/learning with new venture creation by operating as an entrepreneurial ecosystem (EE). We outline a comprehensive EE framework and apply this model using an exploratory case study of an EE centred around an innovative academic unit called The Entrepreneurial Garden (TEG) at Burgundy School of Business in Dijon, France. TEG offers entrepreneurial education, research and new venture development as an integrated portfolio. This analysis shows how an academic unit can be developed as an EE building from local resources and expertise, aligning with macroeconomic policies and priorities, and leveraging partnerships to provide access to other entrepreneurial players, resources and networks.

scholarly journals PRODUCT INNOVATION TOOL ADOPTION BEHAVIOUR IN TECHNOLOGY-BASED NEW VENTURES

2012 ◽  
Vol 16 (03) ◽  
pp. 1240001 ◽  
Author(s):  
GERRIT A. DE WAAL ◽  
PAUL KNOTT
Keyword(s):  
Resource Management ◽  
Problem Solving ◽  
Product Innovation ◽  
New Ventures ◽  
New Venture ◽  
Experienced Team ◽  
Established Firm ◽  
Over Time ◽  
Exclusive Focus

Despite the attention it gives to innovation tools, the product innovation literature does not address the behavioural motivation behind practitioners' adoption of particular tools, or relate this to new venture development. This paper focuses on technology-based new ventures executing their first projects and presents insights into how their innovation tool adoption evolves over time. The paper synthesises case study findings into a hierarchy of tool adoption states encapsulating how new venture teams started with an exclusive focus on effectiveness, and over time progressively attended to problem solving, efficiency, and finally resource management. They often progressed to the next state only in response to costly mistakes and delays, whereas the experienced team in our comparison well-established firm operated within all four states from project initiation. Knowledge of this hierarchy of tool adoption states could help new venture teams to optimise the time they invest in product innovation tools.

scholarly journals Examining the nature of resource-based processes in new venture development through a business-duality lens: A farming sector taxonomy

2012 ◽  
Vol 30 (2) ◽  
pp. 161-188 ◽  
Author(s):  
Helen Perks ◽  
Dominic Medway
Keyword(s):  
Late Stage ◽  
New Ventures ◽  
Multiple Case Study ◽  
New Venture ◽  
Entrepreneurial Process ◽  
Case Study Methodology ◽  
Multiple Case ◽  
Study Methodology ◽  
Insight Into

This article investigates the nature of resource-based processes in the development of new ventures, adopting a business duality lens. Business duality occurs where a new venture is developed alongside an established business. The research employs a multiple case study methodology situated in the farming sector. The details of resource assembly and deployment are examined and presented through four stages of the entrepreneurial process: initiation, experimentation, mature and late stage. The findings offer insight into the manner in which resource ties between the businesses relate to processes of resource assembly and deployment and in addition, inform a business duality-based taxonomy. This depicting three generic approaches to managing resource-based processes in the development of new ventures in the farming sector: holistic innovators, reactive innovators and cautious innovators. We conclude by considering the implications of our arguments for new venture activity in other business duality contexts.

scholarly journals How business accelerators foster startups’ dynamic capabilities: a case study

2020 ◽  
pp. 19-44
Author(s):  
Celia Polo García-Ochoa
Keyword(s):  
Dynamic Capabilities ◽  
Single Case ◽  
Research Question ◽  
New Ventures ◽  
Decision Makers ◽  
Positive Effects ◽  
New Perspective ◽  
Start Ups ◽  
Dynamic Capabilities Perspective

Objective: This study explores how business accelerators programs can impact on the successful growth of their accelerated start-ups based on the dynamic capabilities’ perspective. The author investigates business accelerators practices and tools in supporting new ventures development with the aim of addressing the following research question: To what extend can start-ups benefit from participating in an accelerator program from the dynamic capabilities’ perspective? Methodology: Given the lack of literature on business acceleration practices and on how them influences a start-up’s dynamic capabilities generation, the authors conducted an exploratory case study in a Spanish business accelerator. Results: The business accelerator provide startups with a mix of services embedded in specific practices and tools resulting in the generation of the dynamic capabilities of sensing the market, absorption, integration, and innovation in its startups. Limitations: This study focuses on a single case study resulting in a limited generalization of its findings. Practical implications: This paper open new paths for business accelerators and other institution decision makers by giving guidelines to design business acceleration programs allowing them to allocate resources in a more rational way. It also offers a valuable perspective for founders on the ways of satisfying their needs to complete their business potential. It also offers them an initial checklist of practices to be aware of when deciding to apply to a business accelerator. Also, we add a new perspective to study business accelerator contributions and shed some light on what specific accelerators’ tools and practices may facilitate positive effects in startups.

Value of initial relationships in new business start-ups

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jose Novais Santos ◽  
Joao Mota
Keyword(s):  
New Ventures ◽  
Customer Relationships ◽  
Value Functions ◽  
Business Relationships ◽  
Business Network ◽  
Content Type ◽  
Customer Base ◽  
New Business ◽  
Start Ups ◽  
Over Time

Purpose Several studies have focussed on new ventures and the development of their first business relationships. However, the understanding of the value functions and involvement in those relationships remain inadequate. The purpose of this paper is to explore the relating process of a new venture by combining the value function framework and the notion of the degrees of involvement in business relationships. Design/methodology/approach The authors rely on two exploratory longitudinal case studies that focus on two start-ups. In both cases, the evolution of initial relationships with suppliers and customers over a period of time are studied. Findings The process of relating can occur through a diversity of business relationships manifested in both their value functions and their degree of involvement. The combination of value functions is not stable over time nor is the degree of involvement in business relationships. Moreover, specific interdependencies emerge between the value functions in the customer base and the supplier base of the new ventures over time. Originality/value This paper is among the few that explore the emergence of new ventures by considering both suppliers and customer relationships. From a business network perspective, the paper also shows that combining value functions and degrees of involvement provides a better understanding of the role of relationship diversity in the process of becoming a node in the business network.

Integrating sustainability in business network initiation: the case of an Italian pasta maker

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrea Sabatini ◽  
Thomas O’Toole ◽  
Gianluca Gregori
Keyword(s):  
Network Theory ◽  
Negative Impact ◽  
Single Case ◽  
New Ventures ◽  
New Venture ◽  
Business Network ◽  
Case Study Methodology ◽  
Content Type ◽  
Study Methodology

Purpose The purpose of this paper is to explore how sustainability is integrated into a new venture’s business network initiation. This study unpacks sustainability in business network initiation using temporal bracketing and identifying its main processes. Temporal bracketing supports the understanding of the evolution of sustainability in network initiation. The processes help explore the sustainability patterns that emerge from the new venture’s attempt to integrate sustainability into network initiation. Design/methodology/approach The exploratory case study of an Italian pasta maker draws on industrial network theory to focus on the business network initiation of new ventures. The novelty is the integration of sustainability into the business network initiation literature. This paper adopts a single case study methodology and an abductive approach to analysis. Findings This study finds that sustainability in network initiation is achieved through three periods of initiation and through five processes that are overlapping, intertwined and reciprocal. This study suggests that sustainability can have a positive or negative impact when integrated into the initiation process. Originality/value This paper provides a conceptual framework for understanding how a new venture integrates sustainability in its network initiation. The framework comprises periods and processes of network initiation which show how a new venture can integrate sustainability in its business activities and resources through interaction with network actors.

SmartPooch: pre-venture opportunity assessment

2018 ◽  
Vol 14 (3) ◽  
pp. 292-304
Author(s):  
Mark Rice
Keyword(s):  
New Venture ◽  
Secondary Research ◽  
Content Type ◽  
Business Model Canvas ◽  
Novel Technology ◽  
Capstone Project ◽  
New Business ◽  
Interesting Idea ◽  
Definition Of

Synopsis In an MBA capstone project course, a team of four mid-career, working professionals had assessed the feasibility of a new venture idea. All four were dog-lovers who had been frustrated by the ineffectiveness of the various dog training programs and products in which they had participated. Their idea was to utilize a novel technology to assist dog owners in the training process. After completing the course, the team met to determine whether SmartPooch was just an interesting idea—or alternatively was a sufficiently promising opportunity that one or more of them would continue to explore it. Research methodology The four students who are the case protagonists conducted both primary and secondary research. In addition, the case writer conducted additional secondary research and consulted with the four students during the development of the case study. Relevant courses and levels Introductory Entrepreneurship course at Master’s or Undergraduate levels Theoretical bases Frameworks from which feasibility analysis questions were derived include Mullins’ New Business Road Test and Osterwalder’s Business Model Canvas. The discussion of opportunity recognition starts with the definition of opportunity drawn from Hansen, D.J.; Shrader, R.; and Monllor, J. (2009), “Composite definitions of entrepreneurial opportunity and their operationalizations: toward a typology”, Frontiers of Entrepreneurship Research, Vol. 29 No. 17.

scholarly journals Teams in new ventures: gender, human capital and motivation

2020 ◽  
Vol 12 (2) ◽  
pp. 145-171 ◽  
Author(s):  
Roy Cerqueti ◽  
Caterina Lucarelli ◽  
Nicoletta Marinelli ◽  
Alessandra Micozzi
Keyword(s):  
Human Capital ◽  
New Ventures ◽  
Panel Study ◽  
New Venture ◽  
Nascent Entrepreneurs ◽  
Content Type ◽  
Team Members ◽  
Business Creation ◽  
Personal Motivation ◽  
Start Ups

Purpose This paper aims to dismantle the idea that sex per se explains entrepreneurial outcomes and demonstrates the influence of a gendered motivation on forging and shaping new venture teams, which is a disruptive choice affecting the future of start-ups. Design/methodology/approach A two-level research model is validated on data from the Panel Study of Entrepreneurial Dynamics II (PSED II), with a system of simultaneous equations. First, if team features affect the performance of new ventures is tested; then, the study investigates determinants of team features with a focus on sex and motivation of nascent entrepreneurs. Findings Human capital (HC) in terms of education and experience of team members consistently explains venture evolution only when considering the larger team of affiliates. The HC gathered by nascent entrepreneurs is not because of the simplistic sex condition, but rather to a gendered motivation related to the inferior need of achievement of women. Research limitations/implications Limitations of discretionary scoring assigned to items of the PSED II survey are present, but unavoidable when processing qualitative data. Practical implications Women need to be (culturally) educated on how to re-balance their personal motivation towards entrepreneurship by fostering their incentives for achievement. Political and educational programmes could trigger success in the creation of new businesses led by women. Originality/value This paper contributes to the literature on nascent entrepreneurship, focusing on the entrepreneurial teams in the initial phase of business creation, and provides the basis for further studies aimed at eradicating the stereotypes of gender roles that lead women to self-exclusion and organizational errors.

Sign in / Sign up

Export Citation Format

Share Document