Research SummaryFor more than a century, Frank Knight's Risk, Uncertainty, and Profit has significantly influenced entrepreneurship theory development by exploring the nature of uncertainty and the epistemic limits of entrepreneurial action. Knight's work highlights how economic actors cannot fully predict the consequences of their actions. Despite its broad influence, debates persist regarding the nature of Knightian uncertainty. This study addresses these debates through a comprehensive analysis of RUP and Knight's other published and unpublished writings to offer new insights into the nature and meaning of Knightian uncertainty, revealing Knight's holistic theory that integrates “real indeterminism,” “partial knowledge,” and “subjective beliefs.” This analysis provides much needed construct clarity to advance contemporary theories of entrepreneurial action and the role of uncertainty in business venturing processes.Managerial SummaryThis article revisits Frank Knight's foundational work, Risk, Uncertainty, and Profit, a cornerstone in entrepreneurship research for over a century. We highlight Knight's holistic approach to uncertainty, which integrates the concepts of real indeterminism (the inherent unpredictability of future events), partial knowledge (the incomplete understanding of the present and future), and subjective beliefs (individual perceptions and interpretations). The study offers new perspectives on how Knightian uncertainty influences entrepreneurial decision‐making and action, highlighting how this unique type of uncertainty plays a critical role in the business venturing process. These insights provide valuable contributions to contemporary theories of entrepreneurship, emphasizing the complexity and multifaceted nature of navigating uncertainty in business.
研究摘要 一个多世纪以来，弗兰克-奈特（Frank Knight）的《风险、不确定性与利润》（Risk, Uncertainty, and Profit）通过探讨不确定性的本质和创业行动的认识论局限，对创业理论的发展产生了重大影响。奈特的著作强调了经济行为者如何无法完全预测其行为的后果。尽管奈特的著作影响广泛，但有关奈特不确定性本质的争论却一直存在。本研究通过全面分析《RUP》和奈特其他已出版和未出版的著作，对奈特不确定性的性质和含义提出了新的见解，揭示了奈特整合了 "真实不确定性"、"部分知识 "和 "主观信念 "的整体理论，从而解决了这些争论。本文重温了弗兰克-奈特的奠基之作《风险、不确定性与利润》，该书是一个多世纪以来创业研究的基石。我们强调了奈特对不确定性的整体处理方法，该方法整合了真实不确定性（未来事件固有的不可预测性）、片面知识（对现在和未来的不完全理解）和主观信念（个人感知和解释）等概念。这项研究为奈特式不确定性如何影响创业决策和行动提供了新的视角，强调了这种独特的不确定性如何在创业过程中发挥关键作用。这些见解为当代创业理论做出了宝贵贡献，强调了在企业中驾驭不确定性的复杂性和多面性。
{"title":"Chance, probability, and uncertainty at the edge of human reasoning: What is Knightian uncertainty?","authors":"David M. Townsend, Richard A. Hunt, Judy Rady","doi":"10.1002/sej.1516","DOIUrl":"https://doi.org/10.1002/sej.1516","url":null,"abstract":"Research SummaryFor more than a century, Frank Knight's <jats:italic>Risk</jats:italic>, <jats:italic>Uncertainty</jats:italic>, <jats:italic>and Profit</jats:italic> has significantly influenced entrepreneurship theory development by exploring the nature of uncertainty and the epistemic limits of entrepreneurial action. Knight's work highlights how economic actors cannot fully predict the consequences of their actions. Despite its broad influence, debates persist regarding the nature of Knightian uncertainty. This study addresses these debates through a comprehensive analysis of <jats:italic>RUP</jats:italic> and Knight's other published and unpublished writings to offer new insights into the nature and meaning of Knightian uncertainty, revealing Knight's holistic theory that integrates “real indeterminism,” “partial knowledge,” and “subjective beliefs.” This analysis provides much needed construct clarity to advance contemporary theories of entrepreneurial action and the role of uncertainty in business venturing processes.Managerial SummaryThis article revisits Frank Knight's foundational work, <jats:italic>Risk</jats:italic>, <jats:italic>Uncertainty</jats:italic>, <jats:italic>and Profit</jats:italic>, a cornerstone in entrepreneurship research for over a century. We highlight Knight's holistic approach to uncertainty, which integrates the concepts of real indeterminism (the inherent unpredictability of future events), partial knowledge (the incomplete understanding of the present and future), and subjective beliefs (individual perceptions and interpretations). The study offers new perspectives on how Knightian uncertainty influences entrepreneurial decision‐making and action, highlighting how this unique type of uncertainty plays a critical role in the business venturing process. These insights provide valuable contributions to contemporary theories of entrepreneurship, emphasizing the complexity and multifaceted nature of navigating uncertainty in business.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":null,"pages":null},"PeriodicalIF":6.3,"publicationDate":"2024-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141880154","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}
Research SummaryVenture capital firms (VCs) sometimes continue to hold significant equity stakes in entrepreneurial ventures after venture IPO. The information economics view suggests that retaining equity signals VC commitment and venture quality. This study conceptualizes retaining equity as holding an exchange option, the option to exchange VCs' own valuation of IPO ventures for the market's valuation. Holding this option allows VCs to benefit from the ventures' upside potential. Since exit amounts to giving up the option, the option value represents an opportunity cost of exit. VCs may delay exit if this option is sufficiently valuable. The study examines two key conditions that interact to increase the value of this option: uncertainty and positive private information. This study contributes to research on VC exit and real options.Managerial SummaryWhen do VCs retain equity rather than exit after venture IPO? Researchers have addressed the impact of signaling, cash constraints, human capital constraints, blockholding, VC fund performance, portfolio diversification and institutional features. We identify a previously unrecognized driver: to retain the opportunity to benefit from an IPO venture's upside potential that is yet to be fully recognized or realized. We submit that VCs' incentive to retain equity increases with uncertainty in the venture's industry, and VCs' positive private information as indicated by venture patent applications and positive market surprises in the venture's industry. We find largely supportive evidence for the positive joint effect of uncertainty and private information on the decision to retain equity within the first year or even two years after IPO lockup expiration.
{"title":"Venture capital exit after venture IPO","authors":"Yong Li, Tailan Chi, Sai Lan, Qing Wang","doi":"10.1002/sej.1515","DOIUrl":"https://doi.org/10.1002/sej.1515","url":null,"abstract":"Research SummaryVenture capital firms (VCs) sometimes continue to hold significant equity stakes in entrepreneurial ventures after venture IPO. The information economics view suggests that retaining equity signals VC commitment and venture quality. This study conceptualizes retaining equity as holding an exchange option, the option to exchange VCs' own valuation of IPO ventures for the market's valuation. Holding this option allows VCs to benefit from the ventures' upside potential. Since exit amounts to giving up the option, the option value represents an opportunity cost of exit. VCs may delay exit if this option is sufficiently valuable. The study examines two key conditions that interact to increase the value of this option: uncertainty and positive private information. This study contributes to research on VC exit and real options.Managerial SummaryWhen do VCs retain equity rather than exit after venture IPO? Researchers have addressed the impact of signaling, cash constraints, human capital constraints, blockholding, VC fund performance, portfolio diversification and institutional features. We identify a previously unrecognized driver: to retain the opportunity to benefit from an IPO venture's upside potential that is yet to be fully recognized or realized. We submit that VCs' incentive to retain equity increases with uncertainty in the venture's industry, and VCs' positive private information as indicated by venture patent applications and positive market surprises in the venture's industry. We find largely supportive evidence for the positive joint effect of uncertainty and private information on the decision to retain equity within the first year or even two years after IPO lockup expiration.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":null,"pages":null},"PeriodicalIF":6.3,"publicationDate":"2024-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141726161","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}
Research SummaryWe investigate why a corporate investor makes more corporate venture capital (CVC) investments in certain areas than in others. Focusing on firms' different technological capabilities across distinct technology domains, we argue that a corporate investor's technological capabilities in a given domain affect its likelihood of investing in (1) ventures within the domain in an inverted U‐shaped manner and (2) ventures operating in other technologically complementary domains in a positive manner. We further claim that these two suggested relationships between technological capabilities and the likelihood of CVC investments are shaped by the technology growth rate of the focal domain. We test these arguments in the US medical sector, where incumbent firms are active in CVC investments as a means to acquire external knowledge.Managerial SummaryWe argue that firms exhibit different patterns in their choice of CVC investment areas based on their technological capabilities within a given technology domain. Our findings in the US medical sector indicate that firms are most likely to invest in ventures within domains where their technological capabilities are moderate—neither too weak nor too strong. This suggests that CVC investments serve gap‐filling purposes for technology intermediates. Moreover, corporate investors tend to invest in ventures within domains that are technologically complementary to their areas of strength. However, when a given domain experiences rapid growth, technology leaders in that domain shift their CVC investment focus from complementary areas to that domain to maintain their leading position.
研究摘要我们研究了为什么企业投资者在某些领域的企业风险资本（CVC）投资多于其他领域。我们以企业在不同技术领域的不同技术能力为重点，认为企业投资者在某一领域的技术能力会影响其投资于（1）该领域内风险企业的可能性，呈倒 U 型；（2）在其他技术互补领域运营的风险企业的可能性，呈正向。我们还认为，技术能力与风险投资可能性之间的这两种关系受重点领域技术增长率的影响。我们在美国医疗行业检验了这些论点，该行业中的在位企业积极进行 CVC 投资，以此获取外部知识。我们在美国医疗行业的研究结果表明，企业最有可能投资于其技术能力适中的风险投资领域--既不会太弱，也不会太强。这表明，风险投资公司的投资起到了填补技术中间产品空白的作用。此外，企业投资者倾向于投资与其优势领域在技术上互补的领域内的风险企业。然而，当某一领域出现快速增长时，该领域的技术领先者会将其 CVC 投资重点从互补领域转向该领域，以保持其领先地位。
{"title":"Where to invest? Effects of technological capabilities on corporate venture capital investments","authors":"Wonsang Ryu, Joonhyung Bae, Thomas H. Brush","doi":"10.1002/sej.1513","DOIUrl":"https://doi.org/10.1002/sej.1513","url":null,"abstract":"Research SummaryWe investigate why a corporate investor makes more corporate venture capital (CVC) investments in certain areas than in others. Focusing on firms' different technological capabilities across distinct technology domains, we argue that a corporate investor's technological capabilities in a given domain affect its likelihood of investing in (1) ventures within the domain in an inverted U‐shaped manner and (2) ventures operating in other technologically complementary domains in a positive manner. We further claim that these two suggested relationships between technological capabilities and the likelihood of CVC investments are shaped by the technology growth rate of the focal domain. We test these arguments in the US medical sector, where incumbent firms are active in CVC investments as a means to acquire external knowledge.Managerial SummaryWe argue that firms exhibit different patterns in their choice of CVC investment areas based on their technological capabilities within a given technology domain. Our findings in the US medical sector indicate that firms are most likely to invest in ventures within domains where their technological capabilities are moderate—neither too weak nor too strong. This suggests that CVC investments serve gap‐filling purposes for technology intermediates. Moreover, corporate investors tend to invest in ventures within domains that are technologically complementary to their areas of strength. However, when a given domain experiences rapid growth, technology leaders in that domain shift their CVC investment focus from complementary areas to that domain to maintain their leading position.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":null,"pages":null},"PeriodicalIF":6.3,"publicationDate":"2024-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141624795","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}
Research SummaryUsing data from 1899 Kickstarter campaigns (2009–2019), we examine the impact of simultaneous emission of interdimensional signals of human capital and social causes on crowdfunding campaign success. We argue and demonstrate that backers respond positively to human capital signals, as reflected by prior work and entrepreneurial experiences, as they communicate the competencies of the entrepreneurs. Conversely, signaling a high level of commitment to social causes communicates competing demands, thereby reducing entrepreneurs' ability to secure funding. Moreover, when emitted jointly, interaction of these two signals negatively affects campaign success. Our theory and findings provide nuanced insights regarding simultaneously emitted interdimensional signals in crowdfunding context with a structured incentive system, thereby increasing our understanding about the ambiguous nature of bundling human capital with high social cause signals.Managerial SummaryWhen evaluating new ventures in the public sphere, potential backers simultaneously process the complex information emitted by founders (i.e., signals). These signals communicate the unobservable qualities of the founders. In this article, we investigate the independent and joint effects of two signals on crowdfunding campaign outcomes: founder's human capital and their commitment to social causes. We show that while human capital increases campaign success, a high commitment to social cause decreases this likelihood. We further demonstrate that when these two signals are emitted simultaneously, balancing issues between the signals reduce the chances of attaining campaign success in crowdfunding. These findings emphasize the importance for crowdfunding founders and campaign designers to communicate coherent and well aligned signals to ensure campaign success.
{"title":"Are we on the same wavelength? Interdimensional signal set and crowdfunding success","authors":"Ankita Kulkarni, Daniel Tzabbar, Jade Y. Lo","doi":"10.1002/sej.1514","DOIUrl":"https://doi.org/10.1002/sej.1514","url":null,"abstract":"Research SummaryUsing data from 1899 Kickstarter campaigns (2009–2019), we examine the impact of simultaneous emission of interdimensional signals of human capital and social causes on crowdfunding campaign success. We argue and demonstrate that backers respond positively to human capital signals, as reflected by prior work and entrepreneurial experiences, as they communicate the competencies of the entrepreneurs. Conversely, signaling a high level of commitment to social causes communicates competing demands, thereby reducing entrepreneurs' ability to secure funding. Moreover, when emitted jointly, interaction of these two signals negatively affects campaign success. Our theory and findings provide nuanced insights regarding simultaneously emitted interdimensional signals in crowdfunding context with a structured incentive system, thereby increasing our understanding about the ambiguous nature of bundling human capital with high social cause signals.Managerial SummaryWhen evaluating new ventures in the public sphere, potential backers simultaneously process the complex information emitted by founders (i.e., signals). These signals communicate the unobservable qualities of the founders. In this article, we investigate the independent and joint effects of two signals on crowdfunding campaign outcomes: founder's human capital and their commitment to social causes. We show that while human capital increases campaign success, a high commitment to social cause decreases this likelihood. We further demonstrate that when these two signals are emitted simultaneously, balancing issues between the signals reduce the chances of attaining campaign success in crowdfunding. These findings emphasize the importance for crowdfunding founders and campaign designers to communicate coherent and well aligned signals to ensure campaign success.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":null,"pages":null},"PeriodicalIF":6.3,"publicationDate":"2024-07-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141557143","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}
Research SummaryThis study explores how traditional craft produces novelty, which appears to be at odds with its emphasis on continuation. While prior research has explored how tradition is rediscovered and revived from the past, traditional craft can produce intrinsic novelty potentially through its own repetitive acts. This study examines a Japanese cuisine Kaiseki, which is traditional but simultaneously innovative. The analysis of a well‐known chef's design processes reveals that the chef designs novel dishes by responding to what has been done before, making something better and differently and thereby going beyond the limit of the tradition; Kaiseki tradition is re‐enacted through such practices. A process philosophy of Gills Deleuze is engaged to explain our concept of “tradition as capacity” as well as “tradition as object.”Managerial SummaryTradition is now seen as important source of value. This study explains how craft can be both traditional and innovative. Typically, innovation has been explained by recombination with new technologies and restoration and reinterpretation to reinvigorate identity rooted in the past, this study sheds light on the intrinsic novelty within the practices of craft. This novelty is evident in traditional Japanese cuisine, called Kaiseki, which is traditional but also innovative because customers seek novel exquisite experience as they do in any Michelin Guide starred restaurants. Through the analysis of a chef's practices, we propose a new conceptualization of tradition as capacity. The creative force of this tradition as capacity is important for creating new opportunities and novel values.
{"title":"Tradition, entrepreneurship, and innovation: The craft of Japanese fine dining","authors":"Yutaka Yamauchi, Daniel Hjorth","doi":"10.1002/sej.1512","DOIUrl":"https://doi.org/10.1002/sej.1512","url":null,"abstract":"Research SummaryThis study explores how traditional craft produces novelty, which appears to be at odds with its emphasis on continuation. While prior research has explored how tradition is rediscovered and revived from the past, traditional craft can produce intrinsic novelty potentially through its own repetitive acts. This study examines a Japanese cuisine <jats:italic>Kaiseki</jats:italic>, which is traditional but simultaneously innovative. The analysis of a well‐known chef's design processes reveals that the chef designs novel dishes by responding to what has been done before, making something better and differently and thereby going beyond the limit of the tradition; <jats:italic>Kaiseki</jats:italic> tradition is re‐enacted through such practices. A process philosophy of Gills Deleuze is engaged to explain our concept of “tradition as capacity” as well as “tradition as object.”Managerial SummaryTradition is now seen as important source of value. This study explains how craft can be both traditional and innovative. Typically, innovation has been explained by recombination with new technologies and restoration and reinterpretation to reinvigorate identity rooted in the past, this study sheds light on the intrinsic novelty within the practices of craft. This novelty is evident in traditional Japanese cuisine, called <jats:italic>Kaiseki</jats:italic>, which is traditional but also innovative because customers seek novel exquisite experience as they do in any Michelin Guide starred restaurants. Through the analysis of a chef's practices, we propose a new conceptualization of tradition as capacity. The creative force of this tradition as capacity is important for creating new opportunities and novel values.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":null,"pages":null},"PeriodicalIF":6.3,"publicationDate":"2024-07-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141545952","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}
Vivek Kumar Sundriyal, Moren Lévesque, Karl Wennberg, Axel Norgren
Entrepreneurship research overlooks the dynamics of changing diversity in founding teams. Our simulations calibrated from existing studies suggest that founding teams that change diversity exhibit greater discounted performance for their ventures due to being less diverse and thus their ventures surviving longer, compared to teams that maintain their diversity. Moreover, discounted performance is higher for teams changing diversity due to other teams' performance than due to their own poor performance. Simulating without membership changes the interdependence between team diversity, venture performance, and team disruption, we find that while team diversity is overall performance‐enhancing, this association differs across contexts and its impact varies as ventures mature. Founding team diversity should thus be seen as a continuum where moderate diversity can best serve teams in turbulent environments.We simulated the behavior of founding teams over time to show that compared to teams that do not change their diversity, those who do experience greater discounted performance for their business ventures. This improvement stems from the increased longevity, and thus greater accumulated performance, for teams that switch since they are more rather than less homogeneous. Our investigation also indicates that ventures led by teams that change diversity because they aspire to outperform other teams, tend to exhibit greater discounted performance than those that change diversity to outperform themselves. When we investigate the interconnectedness of teams' diversity, ventures' performance, and disruption, albeit without allowing for any changes in team diversity, we find that while diversity usually helps, teams moderately diversified tend to perform best in turbulent times.
{"title":"Dynamics of founding team diversity and venture outcomes: A simulation approach","authors":"Vivek Kumar Sundriyal, Moren Lévesque, Karl Wennberg, Axel Norgren","doi":"10.1002/sej.1510","DOIUrl":"https://doi.org/10.1002/sej.1510","url":null,"abstract":"Entrepreneurship research overlooks the dynamics of changing diversity in founding teams. Our simulations calibrated from existing studies suggest that founding teams that change diversity exhibit greater discounted performance for their ventures due to being less diverse and thus their ventures surviving longer, compared to teams that maintain their diversity. Moreover, discounted performance is higher for teams changing diversity due to other teams' performance than due to their own poor performance. Simulating without membership changes the interdependence between team diversity, venture performance, and team disruption, we find that while team diversity is overall performance‐enhancing, this association differs across contexts and its impact varies as ventures mature. Founding team diversity should thus be seen as a continuum where moderate diversity can best serve teams in turbulent environments.We simulated the behavior of founding teams over time to show that compared to teams that do not change their diversity, those who do experience greater discounted performance for their business ventures. This improvement stems from the increased longevity, and thus greater accumulated performance, for teams that switch since they are more rather than less homogeneous. Our investigation also indicates that ventures led by teams that change diversity because they aspire to outperform other teams, tend to exhibit greater discounted performance than those that change diversity to outperform themselves. When we investigate the interconnectedness of teams' diversity, ventures' performance, and disruption, albeit without allowing for any changes in team diversity, we find that while diversity usually helps, teams moderately diversified tend to perform best in turbulent times.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":null,"pages":null},"PeriodicalIF":6.3,"publicationDate":"2024-06-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141352825","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}
I examine how the organizational antecedents of spinouts shape the new firms' industry and technological trajectory choices compared to those of the parent firms. Building on prior research on employee entrepreneurship and integrating insights from the literature on opportunity and necessity entrepreneurship, I hypothesize that spinouts launched to exploit a new business opportunity shunned by the parent firm (i.e., opportunity spinouts) are more likely to enter a different but related industry and technological field to those of the parent firm. I hypothesize also that spinouts triggered by adverse developments in the parent firm (i.e., necessity spinouts) are more likely to target the same industry and technological field as the parent. Analysis of data from the European biotech industry supports these predictions.The prevailing view of employee entrepreneurship is that the established firm's unwillingness to commercialize an employee's ideas leads to the employee leaving to start a new firm. However, evidence suggests that spinout activity (new firm formation by former employees) can be also triggered by adverse developments in the established firm that disrupt an employee's job. This study examines how the organizational antecedents of spinouts shape the new firms' early‐stage strategic choices. Using data from the biotech industry, I show that opportunity driven spinouts are more likely to enter a different but related industry and technological field to those of their founders' prior employer and that necessity driven spinouts are more likely to target the same industry and technological field as the prior employer.
{"title":"Spawned by opportunity or out of necessity? Organizational antecedents and the choice of industry and technology in employee spinouts","authors":"Aliasghar Bahoo‐Torodi","doi":"10.1002/sej.1511","DOIUrl":"https://doi.org/10.1002/sej.1511","url":null,"abstract":"I examine how the organizational antecedents of spinouts shape the new firms' industry and technological trajectory choices compared to those of the parent firms. Building on prior research on employee entrepreneurship and integrating insights from the literature on opportunity and necessity entrepreneurship, I hypothesize that spinouts launched to exploit a new business opportunity shunned by the parent firm (i.e., opportunity spinouts) are more likely to enter a different but related industry and technological field to those of the parent firm. I hypothesize also that spinouts triggered by adverse developments in the parent firm (i.e., necessity spinouts) are more likely to target the same industry and technological field as the parent. Analysis of data from the European biotech industry supports these predictions.The prevailing view of employee entrepreneurship is that the established firm's unwillingness to commercialize an employee's ideas leads to the employee leaving to start a new firm. However, evidence suggests that spinout activity (new firm formation by former employees) can be also triggered by adverse developments in the established firm that disrupt an employee's job. This study examines how the organizational antecedents of spinouts shape the new firms' early‐stage strategic choices. Using data from the biotech industry, I show that opportunity driven spinouts are more likely to enter a different but related industry and technological field to those of their founders' prior employer and that necessity driven spinouts are more likely to target the same industry and technological field as the prior employer.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":null,"pages":null},"PeriodicalIF":6.3,"publicationDate":"2024-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141361485","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}
By following the historical case of the world‐renowned potter Luce Rie, we study the relationships between the accrual of material expertise, entrepreneurial actions, and successful craft venture outcomes. Drawing from Sennett's material consciousness framework and Fisher's resource‐based propositions of effective entrepreneurial actions, we enhance understanding of the material drivers of such actions, how material expertise can contribute to self‐imposed constraints, and how these constraints may contribute to positive craft venture outcomes. Our findings thereby contribute to a nuanced understanding of the intimacy between human and material agency in entrepreneurship and reveal a craft approach to managing the tension of novelty and control at the heart of strategic entrepreneurship. Furthermore, our analysis contributes to broader reflection on the definitions of venture success, value generation, and growth.Craft‐based ventures are increasingly recognized as vital to thriving and sustainable economies. However, our understanding of the drivers of entrepreneurial actions that contribute to successful craft venture outcomes remains limited. In this article, drawing from our analysis of the historical case of the world‐renowned potter Lucie Rie using theoretical insights from the craft literature, we focus on the role of material expertise. We thereby identify how a craft entrepreneur's intimate understanding of their materials may help them identify and act upon opportunities, overcome problems, engage a community, and innovate to support the viability of their venture as well as achieve outcomes that motivate the venture in the first place, namely to continually refine their craft and shape audiences' understanding of the value of skilled making.
{"title":"Material expertise: The case of the craft entrepreneur Lucie Rie","authors":"Robin Holt, Rene Wiedner","doi":"10.1002/sej.1509","DOIUrl":"https://doi.org/10.1002/sej.1509","url":null,"abstract":"By following the historical case of the world‐renowned potter Luce Rie, we study the relationships between the accrual of material expertise, entrepreneurial actions, and successful craft venture outcomes. Drawing from Sennett's material consciousness framework and Fisher's resource‐based propositions of effective entrepreneurial actions, we enhance understanding of the material drivers of such actions, how material expertise can contribute to self‐imposed constraints, and how these constraints may contribute to positive craft venture outcomes. Our findings thereby contribute to a nuanced understanding of the intimacy between human and material agency in entrepreneurship and reveal a craft approach to managing the tension of novelty and control at the heart of strategic entrepreneurship. Furthermore, our analysis contributes to broader reflection on the definitions of venture success, value generation, and growth.Craft‐based ventures are increasingly recognized as vital to thriving and sustainable economies. However, our understanding of the drivers of entrepreneurial actions that contribute to successful craft venture outcomes remains limited. In this article, drawing from our analysis of the historical case of the world‐renowned potter Lucie Rie using theoretical insights from the craft literature, we focus on the role of material expertise. We thereby identify how a craft entrepreneur's intimate understanding of their materials may help them identify and act upon opportunities, overcome problems, engage a community, and innovate to support the viability of their venture as well as achieve outcomes that motivate the venture in the first place, namely to continually refine their craft and shape audiences' understanding of the value of skilled making.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":null,"pages":null},"PeriodicalIF":6.3,"publicationDate":"2024-06-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141377379","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}
Our qualitative study of five corporate venture capital (CVC) units reveals that CVC is organized along one of two distinct pathways—order‐taker or free‐bird. Our two‐pathway model deconstructs the heterogeneity within CVC designs and provides detailed insights into the processual nature of CVC search mechanisms. We find evidence that the locus of problem formulation influences the chosen search behavior. While order‐takers respond to predefined corporate‐led problem formulation, free‐birds allow the venture market to guide search behavior. Differences in search processes can thus be attributed to the pursuit of distinct problem‐solution pairs. Implications for CVC and organizational search literature are discussed.Organizations search for new knowledge and technologies using corporate venture capital (CVC) units. Despite growing evidence of heterogeneity in CVC designs, managers continue to have limited insights for designing and running such CVC units. In contrast to previous recommendations to use structural attributes and/or institutional logics to design and manage CVCs, we provide managers an organizational search lens which reveals significant variations in how corporations search for new ventures. We identified two extreme CVC designs driven by the locus of problem formulation (internal vs. external): order‐takers—who respond to a predefined and corporate‐led problem formulation approach, and free‐birds—who shape the problem formulation guided by venture market dynamics. We point to design differences across popular CVC subprocesses which can be handy for managers.
{"title":"Heterogeneity in organizational search behaviors: The case of corporate venture capital units","authors":"Raj Krishnan Shankar, M. Schückes, T. Gutmann","doi":"10.1002/sej.1508","DOIUrl":"https://doi.org/10.1002/sej.1508","url":null,"abstract":"Our qualitative study of five corporate venture capital (CVC) units reveals that CVC is organized along one of two distinct pathways—order‐taker or free‐bird. Our two‐pathway model deconstructs the heterogeneity within CVC designs and provides detailed insights into the processual nature of CVC search mechanisms. We find evidence that the locus of problem formulation influences the chosen search behavior. While order‐takers respond to predefined corporate‐led problem formulation, free‐birds allow the venture market to guide search behavior. Differences in search processes can thus be attributed to the pursuit of distinct problem‐solution pairs. Implications for CVC and organizational search literature are discussed.Organizations search for new knowledge and technologies using corporate venture capital (CVC) units. Despite growing evidence of heterogeneity in CVC designs, managers continue to have limited insights for designing and running such CVC units. In contrast to previous recommendations to use structural attributes and/or institutional logics to design and manage CVCs, we provide managers an organizational search lens which reveals significant variations in how corporations search for new ventures. We identified two extreme CVC designs driven by the locus of problem formulation (internal vs. external): order‐takers—who respond to a predefined and corporate‐led problem formulation approach, and free‐birds—who shape the problem formulation guided by venture market dynamics. We point to design differences across popular CVC subprocesses which can be handy for managers.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":null,"pages":null},"PeriodicalIF":6.3,"publicationDate":"2024-06-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141270805","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}
Emanuela Rondi, Vittoria Magrelli, Francesco Debellis, Alfredo De Massis
Research SummaryCraft firms characterized by a humanistic approach to work face a tension between adhering to pure craft principles and embracing industrialization. This challenge is heightened in family‐controlled craft firms, striving to uphold tradition while adapting to change. This study examines how craft work evolves along the trajectory of entrepreneurial development through a case study of Thun, a third‐generation family craft firm. We identify a set of mechanisms and four configurations—pure, technical, narrative, and ecosystemic—through which craft work evolves over time. These configurations not only preserve traditions, but also infuse them with entrepreneurial spirit, reinterpretation, and deep innovation. This study contributes to the craft work literature by moving beyond static perspectives and revealing the dynamic interplay between different craft configurations.Managerial SummaryCraft firms, which emphasize a humanistic approach to work, often struggle with the tension between preserving traditional craftsmanship and embracing industrialization. Our study of Thun, a third‐generation family craft firm, provides practical insights for managers by identifying a set of mechanisms and four configurations—pure, technical, narrative, and ecosystemic—that show how craft work can evolve over time. Managers can use these configurations to balance tradition and innovation, and inject entrepreneurial spirit into craft processes. Our findings underscore the importance of managing this balance for sustainable competitiveness and fostering an entrepreneurial firm culture that supports both artisanal and industrial production. Our study also provides a practical guide for craft firms seeking to evolve strategically, ensuring the integration of tradition with contemporary entrepreneurial development.
{"title":"The evolution of craft work in the strategic development of a family enterprise","authors":"Emanuela Rondi, Vittoria Magrelli, Francesco Debellis, Alfredo De Massis","doi":"10.1002/sej.1503","DOIUrl":"https://doi.org/10.1002/sej.1503","url":null,"abstract":"Research SummaryCraft firms characterized by a humanistic approach to work face a tension between adhering to pure craft principles and embracing industrialization. This challenge is heightened in family‐controlled craft firms, striving to uphold tradition while adapting to change. This study examines how craft work evolves along the trajectory of entrepreneurial development through a case study of Thun, a third‐generation family craft firm. We identify a set of mechanisms and four configurations—pure, technical, narrative, and ecosystemic—through which craft work evolves over time. These configurations not only preserve traditions, but also infuse them with entrepreneurial spirit, reinterpretation, and deep innovation. This study contributes to the craft work literature by moving beyond static perspectives and revealing the dynamic interplay between different craft configurations.Managerial SummaryCraft firms, which emphasize a humanistic approach to work, often struggle with the tension between preserving traditional craftsmanship and embracing industrialization. Our study of Thun, a third‐generation family craft firm, provides practical insights for managers by identifying a set of mechanisms and four configurations—pure, technical, narrative, and ecosystemic—that show how craft work can evolve over time. Managers can use these configurations to balance tradition and innovation, and inject entrepreneurial spirit into craft processes. Our findings underscore the importance of managing this balance for sustainable competitiveness and fostering an entrepreneurial firm culture that supports both artisanal and industrial production. Our study also provides a practical guide for craft firms seeking to evolve strategically, ensuring the integration of tradition with contemporary entrepreneurial development.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":null,"pages":null},"PeriodicalIF":6.3,"publicationDate":"2024-05-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140903289","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}
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