Strategy in Nascent Markets and Entrepreneurial Firms

Abstract

Abstract This chapter focuses on strategy in nascent markets that are unique entrepreneurial settings characterized by high velocity (i.e., ambiguous, uncertain, and fast-paced) landscapes. Despite their strategic challenges, these markets are where life-altering technologies and game-changing firms originate. Early research on strategy in nascent markets explores top management teams with their strong and long-lived influence on their firms, and organizational processes like alliance formation and strategic decision-making. Recent research extends to managerial cognition and organizational learning processes. Promising paths for future research include alternative strategies (shaping vs. adapting) in nascent markets as well as the strategic implications of the distinct economic “games” in different nascent markets (e.g., ecosystems vs. marketplaces). Unpacking how profitable growth happens for firms remains a significant puzzle as well. Overall, an exciting future lies ahead for one of the most critical and richest areas of strategy.