Developing relationships early: How new ventures fill their capability gap

2019 ◽  
pp. 43-61
Author(s):  
Eleonora Di Maria ◽  
Marco Bettiol ◽  
Valentina De Marchi ◽  
Roberto Grandinetti
Keyword(s):  
Research Question ◽  
New Ventures ◽  
New Venture ◽  
Marketing Capabilities ◽  
Resource Base ◽  
Original Dataset ◽  
Start Up ◽  
External Relationships ◽  
Resource Base View ◽  
Base View

In light of the resource-base view of the firm, liability of newness appears as a capability gap. Several studies claim that collaborating with others is an effective strategy for bridging this gap. However, none of them demonstrates that, against a capability gap declared by the new venture at its birth and filled at the end of the start-up phase, this result was achieved by resorting to relations with external actors.The paper aims at answering this research question analyzing both the case of a marketing and technological capability gaps. The empirical section presents the results based on an original dataset on about 400 Italian new ventures. Results show that collaboration with external partners is the only determinant in reducing both capability gaps, whereas the profile of the new venture as well as its size, its location and the founders' education are not relevant. New ventures use external relationships to develop both technological and marketing capabilities.

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.

Imprenditorialitŕ e nascita di nuove imprese innovative in Europa: un'analisi delle determinanti in alcuni settori ad alta tecnologia

2009 ◽  
pp. 67-92
Author(s):  
Camilla Lenzi ◽  
Maria Luisa Mancusi
Keyword(s):  
New Ventures ◽  
Jel Classification ◽  
New Venture ◽  
Entrepreneurial Activity ◽  
Work Experiences ◽  
Start Up ◽  
Geographical Regions ◽  
New Firm ◽  
The University

- This paper evaluates the importance of some key elements in the process leading to the birth and start-up of a new firm. We focus on a sample of recently founded and innovative European firms in technological fields characterised by strong innovative and competitive dynamics in the last 15 years. Emphasis is placed both on the role of the founder and on the assets exploited and developed in the new ventures early stages. The analysis of the questionnaire confirms the importance of the intellectual capital of the founder and of the scientific and technological knowledge acquired during advanced studies or previous work experiences. It further confirms the importance of the human and financial capital (particularly, access to external funds) necessary to the start of entrepreneurial activity, of intellectual property rights and of the network of relationships with actors having complementary knowledge and assets (other firms, universities and public research centres, parent organisation). The analysis finally highlights interesting differences both at the geographical and sectoral level. Differences across geographical regions include the degree of development of financial markets and the opportunities to access external financial resources, but also and mostly the functions performed and the effectiveness of the university system. On the other side, differences across sectors include the assets exploited in founding the new venture and the key competences that allow it to survive and eventually grow. Keywords: entrepreneurship, spin-off, patent Parole chiave: imprenditorialitŕ, spin-off, brevetto Jel Classification: L10, M13, O30

scholarly journals Identifikasi Kekuatan, Kelemahan, Peluang, Ancaman PT. Prudential Provinsi Riau

2017 ◽  
Vol 3 (3) ◽  
pp. 217-225
Author(s):  
NOFRIZAL NOFRIZAL ◽  
EFRITA SOVIYANTI
Keyword(s):  
Resource Base ◽  
Resource Base View ◽  
Base View

Bisnis asuransi di provinsi Riau semakin tumbuh dan berkembang, setiap perusahaan termasuk PT. Prudential Indonesia berusaha mengeluarkan strategi baru untuk dapat merebut pangsa pasar yang tersedia,  namun apakah strategi yang sudah dibuat sudah sesuai dengan keadaan bisnis eksternal dan internal saat ini. Untuk itu diperlukan indentifikasi peluang, ancaman, kekuatan, kelemahan yang baik untuk menyusun strategi yang tepat. Tujuan penelitian ini adalah untuk mengindentifikasi pelaung, ancaman, kekuatan, kelemahan PT. Prudential Indonesia di provinsi Riau. Metode penelitian ini menggunakan analisis diskriptif dengan tahapan indentifikasi yaitu Eksteral faktor analisis (EFAS), Five force porter dan Internal faktor analisis (IFAS), VRIO, dan Resource base view. Hasil penelitian ini menunjukan bahawa peluang, ancaman, kekuatan, dan kelemahan PT. Prudential Indonesia dalam keadaan baik dimana nilai kekuatan lebih besar dari nilai kelemahan dan nilai peluang lebih besar dari ancaman sehingga dapat membuat beberapa strategi pertumbuhan untuk merebut pangsa pasar di Provinsi Riau.

scholarly journals BOARD CAPITAL AND BANK EFFICIENCY: INSIGHT FROM VIETNAM

2020 ◽  
Vol 21 (2) ◽  
pp. 483-493 ◽  
Author(s):  
Maria Kontesa ◽  
Esmie Obrin Nichol ◽  
Jia-Sing Bong ◽  
Rayenda Khresna Brahmana
Keyword(s):  
Human Capital ◽  
Future Research ◽  
Board Members ◽  
Resource Base ◽  
Bank Efficiency ◽  
Capital Theory ◽  
Board Capital ◽  
Resource Base View ◽  
Base View

This study investigates the role of board capital on bank’s efficiency for a sample of 45 banks in Vietnam over 2011–2015. Using robust panel regression, we find board capital is important in making Vietnamese bank efficient even after controlling its endogeneity issue. This study further documents that networking capital and experience capital are the important factors, but not education for bank efficiency. The findings of this research contribute to the entrenchment hypothesis in agency theory, where networking and experience can be the bargaining power for manager (agent) in securing their compensation. It also contributes to human capital theory and resource base view theory where it shows networking and experience are stratetic human capital resources for bank efficiency. The findings imply that shareholders should consider the networking and experience of board members during board elections. Future research may engage with the intervention of corporate governance monitoring or test it in other developing countries context.

ATTITUDE TOWARDS ENTREPRENEURSHIP EDUCATION AND NEW VENTURE CREATION

2003 ◽  
Vol 11 (04) ◽  
pp. 339-357 ◽  
Author(s):  
LENA LEE ◽  
POH-KAM WONG
Keyword(s):  
New Ventures ◽  
Entrepreneurship Education ◽  
Prima Facie ◽  
Causal Link ◽  
New Venture ◽  
Future Research ◽  
Entrepreneurial Education ◽  
Policy Makers ◽  
Start Up ◽  
Start Ups

Does an individual's positive attitude towards entrepreneurship education promote the growth of new ventures? It appears that it does. The empirical results presented in this paper support a prima facie claim that a relationship exists between attitude towards entrepreneurial education and business start-up. The aim of this paper is to investigate the hypothesised positive relationship between new venture founding and attitude towards entrepreneurial education (AEE). Limited if any research on new venture founding in the past has explored the contribution of AEE in business start-ups. A survey is carried out on a large sample (more than 15,000) of tertiary students residing in Singapore. In analysing the dataset, we have controlled for various factors in the regression analysis. Due to the limitations of our study, we are cautious not to assert any causal link between these 2 variables. The implications of the results to policy makers and educators are discussed along with suggestions for future research in order to refine our present understanding of these relationships.

scholarly journals Does Competitive Intensity Moderate the Relationships between Sustainable Capabilities and Sustainable Organizational Performance in New Ventures?

2019 ◽  
Vol 12 (1) ◽  
pp. 253
Author(s):  
Haili Zhang ◽  
Yufan Wang ◽  
Michael Song
Keyword(s):  
Information Technology ◽  
New Ventures ◽  
New Venture ◽  
Research Model ◽  
Marketing Capabilities ◽  
Competitive Intensity ◽  
Positive Effects ◽  
Venture Performance ◽  
Different Levels ◽  
New Venture Performance

Competitive intensity presents challenges to new ventures. Capabilities may lead to sustainable new venture performance. Yet, few studies have explored how competitive intensity moderates the effects of capabilities on sustainable new venture performance. Based on capability-based view, this study develops a research model to investigate how new ventures translate capabilities (marketing, technology, market-linking, and information technology capabilities) to achieve sustainability of new venture growth and performance under the different levels of competitive intensity. Using data collected from 146 U.S. new ventures, this study uses ordinary least squares regression analysis to test the research model and employs “pick-a-point” approach to examine how capabilities affect sustainable new venture performance at different levels of competitive intensity. The empirical results suggest that increasing competitive intensity decreases, not increases, the positive effects of marketing capabilities on performance. When competitive intensity is very high, the positive effects of marketing capabilities on performance become insignificant. In contrast, the positive effects of market-linking capabilities on performance increase, not decrease, as competitive intensity increases. For technology and information technology capabilities, there are no moderating effects of competitive intensity. The theoretical and managerial implications are suggested for sustainable entrepreneurship and sustainable development of new enterprises.

scholarly journals An Integrated Artificial Intelligence and Resource Base View Model for Creating Competitive Advantage

2020 ◽  
Vol 5 (1) ◽  
pp. 28-37
Author(s):  
Mochammad Ridwan Ristyawan
Keyword(s):  
Artificial Intelligence ◽  
Competitive Advantage ◽  
Small And Medium Enterprises ◽  
Multiple Criteria Decision Making ◽  
Jel Classification ◽  
Global Market ◽  
Product Management ◽  
Resource Base ◽  
Resource Base View ◽  
Base View

Objective – The performance of MSMEs (Micro, Small, and Medium Enterprises) is one of the main indicators to increase Indonesia's economic growth. The contribution of Indonesia's MSMEs is low in the global market and the lowest in ASEAN. One of the ways to increase the contribution is to create the value of competitiveness product. Management of resources is needed to provide high-quality products and competitive advantage of the company. This study aims to examine the combination of resources of the company through the Resource Base-View (RBV) approach. Methodology/Technique – A mix research method was employed, utilizing multiple criteria decision making as the analysis method and the Analytical Hierarchy process (AHP) as the instrument tool of the analysis. The respondents were 100 MSMEs in Pontianak. Findings – The criteria were determined by RBV Concept and the characteristic of company resources. The combination was the sequence level of the weight of the resources. The study also formulated the integration of the Artificial Intelligence and RBV model. The results of the study indicated that human resource is as the highest priority of company attention and the following sequences are marketing and distribution, finance and funding, operational and production, and the internet usage and technology. Novelty – The study also resulted in the creation of the RBV-AI Framework model to obtain strategic resources maintaining the competitive advantage of the company. Type of Paper: Empirical. Keywords: Artificial Intelligence (AI), Resource Base-View (RBV), MSMEs. Reference to this paper should be made as follows: Ristyawan; M.R. 2020. An Integrated Artificial Intelligence and Resource Base View Model for Creating Competitive Advantage, J. Bus. Econ. Review, 5(1) 28– 37 https://doi.org/10.35609/jber.2020.5.1(4) JEL Classification: M15, O32

Does Start-Up Founding Strategy Increase or Decrease the Effects of Strategic Capabilities on New Venture Performance?

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Haili Zhang ◽  
Shengbin Hao ◽  
Michael Song
Keyword(s):  
New Ventures ◽  
New Venture ◽  
Strategic Fit ◽  
Venture Performance ◽  
Start Up ◽  
Proposed Model ◽  
Strategic Capabilities ◽  
And Performance ◽  
The Relationship ◽  
New Venture Performance

Abstract Many studies have provided evidence of a positive relationship between strategic capabilities and new venture performance. This study applies the resource-based view and strategic fit theory to develop a model that investigates how startup founding strategy affects the strength of the strategic capabilities–performance relationship in new ventures. We conduct an empirical study of 146 U.S. new ventures and 425 Chinese new ventures to test the proposed model. The results show that, for U.S. ventures, technology-driven strategy increases the effect of technology capabilities on new venture performance but decreases the effects of marketing and market-linking capabilities on new venture performance. By contrast, Chinese ventures' technology-driven strategy has a significantly negative moderating effect on the relationship between market-linking capabilities and performance. We discuss the implications of the empirical findings for ventures pursuing technology-driven and market-driven strategies.

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