How Starting Strategy and Network Structure Shape Problemistic Search: An Examination of Venture Capital Firms

2021 ◽  
pp. 104225872110335
Author(s):  
Jake Duke ◽  
Taha Havakhor ◽  
Rachel Mui ◽  
Owen Parker
Keyword(s):  
Venture Capital ◽  
Network Structure ◽  
Theory Of The Firm ◽  
Behavioral Theory ◽  
Organizational Strategy ◽  
Search Process ◽  
Strategy Research ◽  
Structural Holes ◽  
Starting Point ◽  
Venture Capital Firms

Building on the behavioral theory of the firm, we empirically examine how starting strategies and syndication networks can influence venture capital (VC) firms’ problemistic search. We propose that: (a) depending on a VC’s strategic starting point, that is, the VC’s extent of specialization, the directionality of problemistic search may change to either expanding or contracting search activities; and (b) depending on search direction, structural holes in syndication networks can either impede or facilitate the problemistic search process. In a sample of U.S. VC firms, we find results consistent with our predictions, which have important implications for entrepreneurship and organizational strategy research.

scholarly journals Back to basics: Behavioral theory and internationalization

2020 ◽  
Author(s):  
Irina Surdu ◽  
Henrich R. Greve ◽  
Gabriel R. G. Benito
Keyword(s):  
International Business ◽  
Firm Growth ◽  
Theory Of The Firm ◽  
International Market ◽  
Learning By Doing ◽  
Behavioral Theory ◽  
Starting Point ◽  
Aspiration Levels ◽  
Firm Internationalization ◽  
Multi Mode

AbstractInternational business (IB) scholars’ over-reliance on a select few theories leaves our understanding of firm internationalization incomplete. The behavioral theory of the firm (BTF) can offer new insights and can be used to model a broad range of firm actions. We focus on the three basic BTF components: problemistic search, learning by doing, and vicarious learning. These components help us understand why firm behaviors are more dynamic and heterogeneous than other theories allow. BTF, with its emphasis on how firms assess performance according to aspiration levels, selectively learn and update routines, and selectively incorporate the learning of others, is better suited to examine the diversity and change increasingly observed in internationalization decisions. We explain why scholars should move beyond “dynamizing” static theories and show BTF’s applicability to behaviors involving change such as multi-mode market entries and market re-entries. BTF also helps examine the decision to internationalize in the first place, nascent firm internationalization, location choices, international market adaptation, and headquarter–subsidiary relationships. We encourage IB scholars to use theories that can handle the complexity increasingly associated with modern firm growth, and propose BTF as a promising starting point.

scholarly journals What Are the Features of Successful Medical Device Start-Ups? Evidence from KOREA

2019 ◽  
Vol 11 (7) ◽  
pp. 1948 ◽  
Author(s):  
Munjae Lee ◽  
Sewon Park ◽  
Kyu-Sung Lee
Keyword(s):  
Venture Capital ◽  
Medical Device ◽  
Industrial Revolution ◽  
Technical Skills ◽  
Healthcare Sector ◽  
Starting Point ◽  
Venture Capital Firms ◽  
A Priority ◽  
The Government ◽  
Start Ups

This study analyzes the factors determining the success of medical device start-ups, focusing on the healthcare sector as the starting point of the Fourth Industrial Revolution. The government is also working to establish a business model to revitalize medical device start-ups as a new driving force for the economy. Accordingly, such start-ups based on innovative technologies have been actively developed, but it seems that there is a limit to growth. We employed an analytical hierarchy process to derive an activation strategy for medical device start-ups. A survey was administered to experts in such start-ups, including medical device companies and venture capital firms, prospective start-up entrepreneurs, medical device developers, and professors. A total of 18 responses were obtained for analysis. The results revealed the following priorities for the success of medical device start-ups: technical skills, marketability, entrepreneurial capacity, and funding. In addition, medical device and venture capital firms were divided into separate groups and compared and analyzed. Technical skills are considered a priority for those in the medical industry. However, entrepreneurial skills are a priority for venture capitalists. Based on these results, we suggest measures for the success of medical device start-ups.

scholarly journals Almost‐Maximization as a Behavioral Theory of the Firm: Static, Dynamic and Evolutionary Perspectives

2019 ◽  
Vol 56 (2) ◽  
pp. 237-258
Author(s):  
Huw Dixon
Keyword(s):  
Dynamic Behavior ◽  
Firm Behavior ◽  
Theory Of The Firm ◽  
Behavioral Theory ◽  
Price Rigidity ◽  
Price Setting ◽  
Term Survival ◽  
Sales Revenue ◽  
Evolutionary Perspectives

Abstract In this paper we consider the effect of epsilon maximization on firm behavior. In particular we focus on the dynamic behavior of firms with the use of the example of price‐setting: We show how almost-rational firms can be more volatile in their behavior. However, if a lexicographic preference for simplicity is made, then we can explain nominal price rigidity as a result of epsilon optimization. The behavior of the firm—which is consistent with its long‐term survival—is examined. We argue that epsilon-optimization is consistent with survival in any context in which something is optimized: such as sales revenue.

Interdisciplinary Research in SCM: Through the Lens of the Behavioral Theory of the Firm

2016 ◽  
Vol 37 (2) ◽  
pp. 107-112 ◽  
Author(s):  
Nada R. Sanders ◽  
Brian S. Fugate ◽  
Zach G. Zacharia
Keyword(s):  
Interdisciplinary Research ◽  
Theory Of The Firm ◽  
Behavioral Theory
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