Abstract
This research advances scholarly understanding of the strategic decisions regarding external communication during the critical period of product launch. Drawing on research about dynamic capabilities and external organizational communication, this study examines ways in which entrepreneurial organizations use silence as an effective communication strategy to reduce external uncertainty and to nurture growth during critical periods of development. Data were collected tracking the external communication of 54 entrepreneurial organizations that focus on mobile news application development. Results show a significant relationship between the attention organizations attract after product launch and an organization's performance. The greater the magnitude of change from pre-launch to post-launch, from less frequent external communication to more frequent external communication, the more likely there is to be an increase in the product performance. The findings emphasize a more nuanced understanding of external communication as a strategic tool in entrepreneurial organizations.
Highlights
This research advances scholarly understanding of the strategic decisions regarding external communication during the critical period of product launch
The central goal of this article is to develop the concept of strategic silence as a component of external communication strategy in entrepreneurial organizations
This article situates strategic silence in the dynamic capabilities framework to answer the questions about why entrepreneurial organizations are adopting strategic silence and when it will lead to favorable performance outcomes
Summary
This research advances scholarly understanding of the strategic decisions regarding external communication during the critical period of product launch. Entrepreneurial organizations often engage in periods of silence; for instance, in “stealth mode” entrepreneurs restrict external information from stakeholders to avoid garnering unwanted attention (stealth mode is an industry term used to refer to a period when an early-stage organization has formed but has not publicly discussed its core products). An increasing number of entrepreneurial organizations use “Stealth Mode Startup Company” as their company name on various job platforms such as Glassdoor and .com to hide their identity while still attracting job applicants. Organizations at this stage face conflicting strategic goals, attempting to gain access to resources while limiting external attention
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