scholarly journals The Liability of Volatility and How it Changes Over Time Among New Ventures

2019 ◽  
Vol 44 (5) ◽  
pp. 933-963 ◽  
Author(s):  
Erik Lundmark ◽  
Alex Coad ◽  
Julian S. Frankish ◽  
David J. Storey
Keyword(s):  
Strong Predictor ◽  
New Ventures ◽  
New Venture ◽  
Short Term ◽  
Average Decrease ◽  
Bank Accounts ◽  
Revenue Volatility ◽  
Changes Over Time ◽  
Over Time

This article theorizes how short-term revenue volatility affects new venture viability and how such volatility develops over time. Tracking the bank accounts of 6,578 new ventures over a 10-year period, we find that, even after controlling for a range of other factors, short-term revenue volatility is a strong predictor of venture exit. Although short-term revenue volatility is associated with the depletion of buffer resources and financial default, surviving ventures do not, on average, decrease their short-term revenue volatility over time. However, short-term revenue volatility decreases at the cohort level due to higher exit rates of volatile ventures.

How Do “Resource Bundles” Develop and Change in New Ventures? A Dynamic Model and Longitudinal Exploration

2001 ◽  
Vol 25 (3) ◽  
pp. 37-58 ◽  
Author(s):  
Benyamin M. Bergmann Lichtenstein ◽  
Candida G. Brush
Keyword(s):  
Dynamic Model ◽  
New Ventures ◽  
New Venture ◽  
Entrepreneurial Firms ◽  
Short Term ◽  
Change Over Time ◽  
Performance Results ◽  
Term Performance ◽  
Over Time

According to recent studies applying Resource-Based Theory [RBT] to entrepreneurial firms (e.g. Chandler & Hanks, 1994; Brush & Greene, 1996), in the early stages of new venture development it is the identification and acquisition of resources—rather than deployment or allocation activities—that is crucial for the firm's long-term success (Stevenson & Gumpert, 1985). This study explores that relationship longitudinally, tracking salient resources in three rapidly growing new ventures, and analyzing how these resources change over time. Our findings identify the most common types of salient resources, the primary types of changes in resource and resource bundles, and a pattern linking the type of change with short-term performance results in each firm.

Comparability and Short-Term Stability of Techniques to Assess Extension of Thinking about One's Personal Future

1983 ◽  
Vol 56 (2) ◽  
pp. 559-564 ◽  
Author(s):  
William Rakowski ◽  
Clifton E. Barber ◽  
Wayne C. Seelbach
Keyword(s):  
Data Collection ◽  
Life Events ◽  
Short Term ◽  
Life Event ◽  
Term Stability ◽  
The Future ◽  
Changes Over Time ◽  
Over Time

Three techniques for assessing extension of one's personal future (line-marking, open-ended report, life-events) were compared in a sample of 74 respondents. Two points of data collection were employed to examine short-term stability. At both administrations, correlations among indices suggested that techniques were only moderately comparable. Short-term stabilities were variable; correlations ranged from .42 to .79. Across subgroups of the sample, the direct, open-ended report of extension showed the greatest stability, while life-event extension showed the least. Apparently, extension of thinking about the future should be assessed by more than one technique to investigate potential relationships with other variables or changes over time in perspective about the future.

ACHIEVING SUPERIOR INTERNATIONAL NEW VENTURE (INV) PERFORMANCE: EXPLOITING SHORT-TERM DURATION OF TIES

2008 ◽  
Vol 16 (01) ◽  
pp. 1-18 ◽  
Author(s):  
MARY HAN
Keyword(s):  
Network Analysis ◽  
New Ventures ◽  
Economic Effect ◽  
The Body ◽  
New Venture ◽  
Superior Performance ◽  
International New Ventures ◽  
Short Term ◽  
Network Ties ◽  
The Impact

Network ties help international new ventures (INVs) achieve success. However, researchers have paid little attention to the duration of network ties and the impact of duration on performance. I draw on network analysis and the resources-based view to examine this area and propose a conceptual model that depicts the variables and mediating factors for INV performance. The model explains how INVs acquire, manage and exploit ties to achieve superior performance. I argue that resource-constrained INVs can minimize their investment of time and capital, and maximize the economic effect of ties, by using briefer time periods and short-term projects. I also propose that INVs adopt a 'hedging' or portfolio approach to managing ties, by collecting larger number of prospects to reduce uncertainty. The model and propositions contribute to the body of literature in network analysis and INVs. The paper highlights implications for research and practice.

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 Co-constructing an Opportunity with a Community of Inquiry

2021 ◽  
pp. 27-50
Author(s):  
Dean A. Shepherd ◽  
Holger Patzelt
Keyword(s):  
Community Of Inquiry ◽  
New Ventures ◽  
Social Model ◽  
New Venture ◽  
Specific Information ◽  
Community Members ◽  
Entrepreneurial Teams ◽  
Market Launch ◽  
Over Time ◽  
Communities Of Inquiry

AbstractEntrepreneurs can learn about potential opportunitiesthrough social interactions with communities of inquiry. However, how do entrepreneurs build such communities, and how do they engage community members over time to develop their potential opportunities? Building on a recent study of eight new ventures and their communities of inquiry over nine months (Shepherd et al. in Journal of Business Venturing, 106033), this chapter presents a social model of opportunity development. The chapter explains how entrepreneurial teams that progress well toward market launch consist of varied specialists who openly engage their communities of inquiry. This open engagement leads such teams to gather diverse information, generate multiple alternatives (technology and market), and test conjectures about their potential opportunities through disconfirmation. In contrast, unsuccessful entrepreneurial teams rely on focused engagement with their communities of inquiry. This focused engagement leads these teams to gather specific information, generate a few related alternatives, and seek to confirm their opportunity conjectures. This chapter highlights new insights into entrepreneurial teams’ engagement with communities of inquiry to explain opportunity development and, ultimately, new venture progress.

scholarly journals Historicizing the Ottoman Timar System: Identities of Timar-Holders, Fourteenth to Seventeenth Centuries

2017 ◽  
Vol 8 (2) ◽  
pp. 145-173
Author(s):  
Linda T. Darling
Keyword(s):  
Short Term ◽  
Using Data ◽  
Changes Over Time ◽  
Over Time

This article aims to develop a new narrative of changes in the Ottoman timar system independent of the complaints of decline brought by advice writers like Mustafa ‘Ali. Based on the icmal defterleri, it examines the identities of timar-holders and their changes over time, a topic generally ignored in descriptions of the Ottoman military. Using data from earlier studies, it connects changes in timar-holding with changing conditions in the sultans’ reigns. It then takes a longer-term look at these changes over the half-centuries and finds the well-known complaints in the nasihatnameler to be based on a very short-term view of the system.

scholarly journals Tax Competition, Investment Irreversibility and the Provision of Public Goods

2015 ◽  
Vol 16 (4) ◽  
pp. 408-421 ◽  
Author(s):  
Michele Moretto ◽  
Sergio Vergalli ◽  
Paolo M. Panteghini
Keyword(s):  
Business Cycle ◽  
Public Goods ◽  
Tax Competition ◽  
Capital Accumulation ◽  
Business Risk ◽  
Short Term ◽  
The Business Cycle ◽  
Changes Over Time ◽  
Over Time

AbstractThis article studies the effects of tax competition on the provision of public goods under business risk and partial irreversibility of investment. As will be shown, the provision of public goods changes over time and also depends on the business cycle. In particular, under source-based taxation, in the short term, public goods can be optimally provided during a downturn. The converse is true during a recovery: in this case, they are underprovided. In the long term, however, tax competition does not affect capital accumulation. This means that the provision of public goods is unaffected by taxation.

A relational lifecycle model of the emergence of network capability in new ventures

2017 ◽  
Vol 36 (5) ◽  
pp. 521-545 ◽  
Author(s):  
Helen McGrath ◽  
Thomas O’Toole ◽  
Lou Marino ◽  
Catherine Sutton-Brady
Keyword(s):  
Qualitative Study ◽  
New Ventures ◽  
New Venture ◽  
Dynamic Capability ◽  
Tipping Points ◽  
Business Partners ◽  
Lifecycle Model ◽  
Strategic Ability ◽  
Network Capability ◽  
Over Time

This article presents a relational lifecycle model of the emergence of network capability in new ventures. Network capability is defined as a strategic ability learned in interaction with business partners. We focus on the foundational phases and processes of the emergence of this dynamic capability. The lifecycle model comprises three phases that evolve over time in tandem with the level of network engagement. The qualitative study identifies five tipping points or critical changes that move new ventures between the lifecycle phases. Using a sample of new ventures in a longitudinal action research design, the article demonstrates how new ventures emerge in network capability through increasingly complex and multilayered engagement processes with business partners. The relational lifecycle model contributes to the literature on how network capability emerges over time through the dynamics of interaction between business partners as new venture networks evolve and change.

scholarly journals The Characteristics of Innovative, Mechanical Products—10 Years Later

2018 ◽  
Vol 140 (8) ◽  
Author(s):  
Katja Hölttä-Otto ◽  
Kevin Otto ◽  
Chaoyang Song ◽  
Jianxi Luo ◽  
Timothy Li ◽  
...  
Keyword(s):  
Success Rate ◽  
New Ventures ◽  
New Venture ◽  
Mechanical Products ◽  
Innovative Products ◽  
Innovation Characteristics ◽  
Established Firms ◽  
Established Firm ◽  
Over Time

Ten years prior to this paper, innovative mechanical products were analyzed and found to embody multiple innovation characteristics—an average of two more than competing products in the marketplace. At the time, it was not known whether these products would be successful over time and whether the number or type of innovation characteristics would be related with success. In this work, products from the previous study were categorized into well- and under-adopted products. Also, each product was categorized according to the type of firm that launched it: a new venture or an established firm. The innovative products enjoyed a success rate of 77% on average. The success was not dependent on the number or type of innovation characteristics embodied by the product. However, products developed in new ventures embody, on average, one more innovation characteristic and enjoy a slightly higher success rate than those launched by established firms.

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