{"title":"A legitimacy‐based view of the impact of government venture capital on startup innovation: Evidence from a transition economy","authors":"Ramakrishna Devarakonda, Aqi Liu","doi":"10.1002/sej.1485","DOIUrl":"https://doi.org/10.1002/sej.1485","url":null,"abstract":"Abstract Research Summary This study examines the role of government venture capital (GVC) on startup innovation in a transition economy context. Drawing on institutional theory, we advance a contextual view of GVC by proposing that GVC positively impacts the innovation of startups in transition economies by serving as a sociocognitive legitimating endorsement. Furthermore, our study offers a contingent framework by showing that GVC endorsement will be more meaningful for startups deficient in organizational sources of legitimacy, such as political ties and social prestige. Regression analyses using a longitudinal data of Chinese venture‐backed biopharma and medical device startups founded during 2002–2017 offer broad support for our theory about the sociocognitive legitimating role of GVC in transition economy contexts. Managerial Summary We explore the role of government venture capital (GVC) in promoting startup innovation within transition economies. In such contexts, where startups often face skepticism and legitimacy issues, our research reveals that GVC can play a crucial role by providing socio‐cognitive legitimacy. Our study suggests that this “state backing” enables transition economy startups to gain the trust of external knowledge resource holders, enhancing their innovation prospects. Our findings emphasize the significance of GVC as a means of active government intervention for fostering startup innovation, especially for startups deficient in other avenues of legitimacy. This insight is valuable for entrepreneurs and policymakers in transition economy contexts.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"47 12","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135726491","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Upgrading adaptation: How digital transformation promotes organizational resilience","authors":"Russell E. Browder, Sean M. Dwyer, Hope Koch","doi":"10.1002/sej.1483","DOIUrl":"https://doi.org/10.1002/sej.1483","url":null,"abstract":"This study explores how digital transformation can promote organizational resilience when incumbent firms face crises. We examine the intersection of digital transformation and resilience-seeking processes through two longitudinal case studies of incumbent firms designated as “essential businesses” during the COVID-19 pandemic. We analyze 72 crisis adaptations the firms implemented during the crisis to understand how previously underutilized digital capabilities upgraded each firm's ability to adapt to mitigate stakeholder risks and engage in resilience-seeking rather than advantage- or opportunity-seeking. We identify five digital capabilities—virtual access, virtual collaboration, data-driven decision-making, algorithmic reprogrammability, and assisted decision-making—that arose from technologies acquired to enable digital transformation before the crisis. We discuss the concept of resilience opportunities and contribute to the literatures on digital transformation and organizational resilience.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"59 29","pages":""},"PeriodicalIF":6.3,"publicationDate":"2023-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"71474937","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Prabal Shrestha, James Thewissen, Özgür Arslan-Ayaydin, Annaleena Parhankangas
{"title":"A sense of risk: Responses to crowdfunding risk disclosures","authors":"Prabal Shrestha, James Thewissen, Özgür Arslan-Ayaydin, Annaleena Parhankangas","doi":"10.1002/sej.1480","DOIUrl":"https://doi.org/10.1002/sej.1480","url":null,"abstract":"This paper examines how reward-based crowdfunding backers respond to risk disclosures. Combining theoretical frameworks from financial accounting with the risk perception literature, we adopt an abductive research approach to explore various nuances that influence backers' tolerance for risk information. In addition to identifying the general dynamics in backers' risk interpretation, we highlight the complexities introduced by differences in the disclosure's semantic content, expressed feelings, and the discloser's background attributes. Relying on a hierarchical Bayesian mixture model, we first identify a positive curvilinear relationship between risk information quantity and crowdfunding success. We then demonstrate the influences of <i>what</i> is disclosed, <i>how</i> it is disclosed, and <i>who</i> discloses it, while emphasizing the context-bound specificities of individual project types.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"59 32","pages":""},"PeriodicalIF":6.3,"publicationDate":"2023-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"71474934","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Complementary currencies and entrepreneurship: Sustaining micro-entrepreneurs in Kenyan informal settlements","authors":"George Kuk, Camille Meyer, Stephanie Giamporcaro","doi":"10.1002/sej.1484","DOIUrl":"https://doi.org/10.1002/sej.1484","url":null,"abstract":"With over a billion people inhabiting informal settlements worldwide, micro‐entrepreneurs are vital to local economies. Complementary currencies have emerged as tools to sustain these entrepreneurs, providing alternative trading and payment options. This study explores the daily strategies of micro‐entrepreneurs in Kenyan informal settlements using the digital complementary currency Sarafu. Our findings reveal that complementary currencies act as external enablers, transforming the local economies by enhancing payment systems, influencing supply and demand, and altering pricing structures. Significantly, when integrated with savings groups, they provide financial inclusion and collective purpose, strengthening local business networks. This research enriches our understanding of the mechanisms micro‐entrepreneurs deploy to leverage complementary currencies for growth, emphasizing the need for further exploration into the role of complementary currencies in supporting entrepreneurship.This study explores how a complementary currency called Sarafu benefits micro‐entrepreneurs in Kenyan informal settlements. Sarafu acts as catalysts for entrepreneurship by boosting local markets and empowering community cooperation. Our findings reveal that micro‐entrepreneurs use Sarafu to adapt to the unique challenges of informal economies. They employ smart strategies like flexible pricing and inventory management to keep Sarafu flowing smoothly. Sarafu serves a dual purpose: a means of immediate spending and a tool for saving and growing capital. It also strengthens local business networks and creates a sense of collective purpose. For practitioners, this study suggests using complementary currencies to support local business networks, promote collective savings, and align the issuance of complementary currencies with local assets to foster sustainable entrepreneurship in informal economies.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"4 5","pages":""},"PeriodicalIF":6.3,"publicationDate":"2023-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"71417576","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Remedios Hernández-Linares, María Concepción López-Fernández, Kimberly A. Eddleston, Franz Kellermanns
{"title":"Learning to be entrepreneurial: Do family firms gain more from female leadership than nonfamily firms?","authors":"Remedios Hernández-Linares, María Concepción López-Fernández, Kimberly A. Eddleston, Franz Kellermanns","doi":"10.1002/sej.1482","DOIUrl":"https://doi.org/10.1002/sej.1482","url":null,"abstract":"We integrate social learning theory with gender role congruity theory to propose that family firms gain more from female leadership than nonfamily firms due to the congruence of female communal values with those of a family business. Results of our empirical study, based on a sample of 322 Spanish small- and medium-sized enterprises (SMEs), show that while all three dimensions of learning orientation (commitment to learning, shared vision, and open-mindedness) are positively related to an entrepreneurial orientation, significant differences exist based on the CEO's gender and whether the SME is a family or nonfamily firm. Strongest differences were found between female-led family and nonfamily SMEs whereby the entrepreneurial orientation of female-led family SMEs benefited significantly more from their firm's commitment to learning and open-mindedness.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"2 3","pages":""},"PeriodicalIF":6.3,"publicationDate":"2023-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"71435400","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Fast forward? Time compression attempts and post-IPO performance","authors":"Andrew D. Henderson, Melissa E. Graebner","doi":"10.1002/sej.1481","DOIUrl":"https://doi.org/10.1002/sej.1481","url":null,"abstract":"An initial public offering (IPO) expands a firm's access to funding and enables future-oriented strategic investments. Though aggressive investments can open new opportunities and speed the construction of relative advantage, this aggression risks time compression diseconomies and maladaptive learning from rushed experiences. We propose a firm's investment tempo and industry velocity combine to affect the trajectory of a firm's post-IPO performance. Agent-based simulation modeling suggested that aggressive, up-tempo investment sped the construction of relative advantage in low-velocity industries. Empirical analyses of multiyear post-IPO windows in real firms supported this. In contrast, simulations and analyses of real firms suggested up-tempo investment was maladaptive in high-velocity industries as the combination of fast investment and fast industry change was often more than boundedly rational agents could cognitively handle.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"16 10","pages":""},"PeriodicalIF":6.3,"publicationDate":"2023-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50167004","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mario Daniele Amore, Annamaria Conti, Valerio Pelucco
{"title":"Micro venture capital","authors":"Mario Daniele Amore, Annamaria Conti, Valerio Pelucco","doi":"10.1002/sej.1478","DOIUrl":"https://doi.org/10.1002/sej.1478","url":null,"abstract":"Recently, the venture capital (VC) industry has experienced the entry of several new capital providers. Using US data on investors and their portfolio startups from 2000 to 2022, we document the emergence of a new type of investors: the <i>micro VC</i>. Our analysis reveals that micro Vencture Capitalists (VCs) have an idiosyncratic investment strategy, which differs from traditional VCs. Compared with these investors, micro VCs invest in riskier startups, that is, early-stage ventures initiated by less experienced founders; yet, micro VCs are less likely to syndicate, stage their investments, and replace the startup founders. Additionally, startups funded by micro VCs are less likely to experience successful exits than those backed by traditional VCs. These results can be traced to a mix of smaller capital endowments, less sophisticated limited partners, and lesser human capital of which micro VCs dispose, and that may induce them to spread their thin capital across many investments to maximize returns. Our analysis also uncovers important differences in the strategies pursued by micro VCs and business angels.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"15 12","pages":""},"PeriodicalIF":6.3,"publicationDate":"2023-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50167012","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Are entrepreneurs penalized during job searches? It depends on who is hiring","authors":"Waverly W. Ding, Hyeun J. Lee, Debra L. Shapiro","doi":"10.1002/sej.1479","DOIUrl":"https://doi.org/10.1002/sej.1479","url":null,"abstract":"How do job-applicants with entrepreneurship experience—“post-entrepreneurs”—fare in the wage labor job market? We propose an “entrepreneurship-experience penalty” generally occurs yet varies in strength depending on the recruiters faced by post-entrepreneurs in their job application process. In an experiment utilizing the selection-decisions of 275 recruiters (experimental study participants) in reaction to objectively-identical job-applicants' resumes whose differences relate to whether their last-held job was as a <i>Founder</i> or as an <i>Executive</i>, we found that: (a) resumes of Founders (compared to Executives) are about 23%–29% less likely to be picked as top-choice for hire, (b) this entrepreneurship penalty is weaker for recruiters with (rather than without) entrepreneurial aspirations, and (c) this recruiter moderator-effect is stronger for recruiters in smaller (rather than larger) firms.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"15 5","pages":""},"PeriodicalIF":6.3,"publicationDate":"2023-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50167017","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Corporate‐startup partnering: Exploring attention dynamics and relational outcomes in asymmetric settings","authors":"Shameen Prashantham, Anoop Madhok","doi":"10.1002/sej.1475","DOIUrl":"https://doi.org/10.1002/sej.1475","url":null,"abstract":"Abstract Research Summary Startups that partner concurrently with a large corporation must compete for the latter's attention. We extend the attention‐based view from an intraorganizational to an interorganizational context, exploring how startups differ in the amount of attention they receive, their actions to attract and sustain attention, and the impact of attention dynamics on the relational outcome of the partnership. Our research uncovers two separate contests for attention involving corporate and divisional managers, highlighting the distributed nature of attention. Reflecting these, our findings reveal how startups' responsiveness to the respective cognitive schemas and corresponding stimuli of corporate and divisional managers is critical to understanding their distinct relational trajectories and disparate outcomes. Our focus on attention is complementary to the focus on trust that has hitherto dominated research on relational dynamics. Managerial Summary Startups partner with large corporations to access needed complementary resources. However, truly benefiting from such partnerships is challenging and requires them to attract as well as sustain the latter's attention. Our study reveals two contests for attention: one with corporate managers tasked with running a startup partnering initiative and the other with divisional managers in business units with whom actual commercial joint activity is forged. These two sets of managers have different priorities (schemas) that result in differences in the nature and amount of attention they pay to startups' actions (stimuli). Startups seeking corporate partnerships would do well to recognize this heterogeneity within large corporations and accordingly manage the attention–attraction process through suitable partner‐centric behaviors. On their part, large corporations need to be aware of and sensitive to the challenges such disparate schema of corporate and divisional managers pose for successful partnering outcomes as the relationship transitions from the early to later stages.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135783791","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Business modeling under adversity: Resilience in international firms","authors":"Tamara Galkina, I. Atkova, Peter Gabrielsson","doi":"10.1002/sej.1474","DOIUrl":"https://doi.org/10.1002/sej.1474","url":null,"abstract":"This study employs resilience theory and examines the dynamics of business modeling in international firms that enable them to resist environmental shocks under the adverse conditions of a global pandemic. Our multiple‐case study shows that firms develop various dynamic states of their business models (BMs) during the resilience process; each state differs in terms of the scope of BM change and the concurrent degree of BM innovativeness. Shifts in dynamic states result from attaining certain resilience capabilities. We contribute to the dynamic view on BMs, and the process perspective on organizational resilience; we also advance BM research in the context of internationalization.Under conditions of extreme disruptions that take the form of long‐lasting adversity, international firms need to continuously adjust their BMs to brave force majeure and remain resilient. This study takes a dynamic perspective on business modeling and examines how international firms develop different dynamic states of their BMs to stay resilient under extreme uncertainty; each state differs in terms of the scope of BM change, concurrent degree of BM innovativeness and the attained resilience capabilities. We show that business modeling is a continuous task of international firms that allows them not only to resist adversity but also to open new markets.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":" ","pages":""},"PeriodicalIF":6.3,"publicationDate":"2023-09-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42992946","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}