Dynamics of strategy implementation across different types of new ventures

Abstract

The nature of strategy and its implementation for entrepreneurs in emergent-stage ventures is explored. The emergent nature of these ventures finds them in an ongoing state of becoming as the entrepreneur interprets and makes sense of novel developments, with strategy formulation and implementation capabilities emerging in real time. Lacking resources, marketplace legitimacy, and critical capabilities, these entrepreneurs find the strategic direction of the firm is reliant on experimentation and ongoing learning through trial and error. It is important for entrepreneurs to realize that a bi-directional relationship exists between the formulation and implementation of strategy, where strategy is formed and modified in response to the realities introduced through execution efforts. We identify the fundamental differences in strategy formulation and implementation depending on whether the entrepreneur is creating a survival, lifestyle, managed growth, or aggressive growth business. These differences impact the need for and capacity of the firm to adapt and/or pivot as it evolves through stages of development. Key implementation priorities are provided for entrepreneurs.