Established Companies Research Articles

Planting the Seeds of Innovation: Established Companies' Startup Cooperation Capability, Its Mechanisms, and Innovation Outcomes

The phenomenon of established companies engaging in startup cooperation in expectance of improving their innovativeness has increased extensively within the last few years. While some companies benefit considerably, others seem to fail at startup cooperation. Bridging cooperation research and dynamic capabilities, this paper sheds light on established companies' startup cooperation capability as important dynamic capability to succeed at startup cooperation. We conceptualize startup cooperation capability adapting alliance capability approaches from traditional cooperation research to fit startup cooperation. Furthermore, this study examines how startup cooperation capability impacts established companies' success in finding potential new startup partners and the efficiency with which startup cooperation activities are coordinated. Through these mechanisms, the study analyzes how startup cooperation capability consequently improves new product innovativeness. In addition, we investigate the moderating effects of resource availability as well as company formalization. To test the hypotheses, we analyze survey data from 195 startup cooperation managers who work at established companies by applying covariance‐based structural equation modeling. The results suggest that startup cooperation capability has a positive impact on outreach success, which in turn positively affects new product innovativeness. The relationship between startup cooperation capability and outreach success is strengthened by resource availability. In contrast, startup cooperation capability is negatively associated with coordination efficiency, and this effect is weakened by the influence of company formalization. Summed up, the study shows that startup cooperation capability can improve the innovation outcomes of startup cooperation and illustrates how it can help established companies to pursue startup cooperation successfully.

Digital platforms in the agricultural sector: Dynamics of oligopolistic platformisation

This paper introduces the concept of ‘oligopolistic platformisation’ to capture the specific dynamics of collaboration and competition between multinational upstream agribusinesses and Big Tech companies in the agricultural (ag) sector. We examine this phenomenon through the lens of Van Dijck et al.’s platform mechanisms: datafication, selection and commodification. Multinational agribusinesses operate sectoral ag platforms that analyse spatial, weather and agronomic data to optimise farming operations, whilst Big Tech companies provide the digital infrastructure, including cloud computing, data analytics and artificial intelligence. We explore how these pre-existing oligopolistic market structures influence the process and outcomes of platformisation in the ag sector. Using expert interviews, field observations, economic relationship mapping and an extensive literature review, we investigate relationships amongst multinational agribusinesses and between agribusinesses and Big Tech companies. Our findings reveal that Big Tech and multinational agribusinesses are collaboratively establishing digital platforms as the core organisational form of digital agriculture, aiming to consolidate most services. This collaboration blurs the lines between traditionally distinct industries, fostering overlapping ecosystems and mutually beneficial economic relationships in an already highly concentrated market. This dynamic has the potential to reinforce the market position of established companies, increase farmers’ dependency on agribusinesses and contribute to fragmented and siloed data systems.

Towards circular economy through innovation: the role of entrepreneurial orientation and human resource management

The development of the circular economy (CE) has become a strategic priority for the EU to achieve the UN’s Sustainable Development Goals. While the number of CE-based start-ups is burgeoning, established companies seem to be slower to adopt CE. Incorporating CE principles requires established firms to transform their business processes and activities from a linear to a circular approach, which often requires the introduction of significant and complementary technological and non-technological innovations, as well as significant investments that may hamper the firm’s overall performance. Thus, the disruptive nature of CE adoption may make established firms reluctant to embrace this process and underlines the need to identify its drivers and to clarify its potential benefits. Accordingly, we analyze the role of entrepreneurial orientation (EO) in promoting circular human resource management (CHRM), circular product innovation and circular manufacturing. This study is the first to define and measure CHRM and one of the few to apply the concept of EO in the context of CE. Using seemingly unrelated regressions (SUR), we find that EO promotes circular innovation directly and indirectly through CHRM. This factor represents a non-technological innovation which directly impacts on circular product innovation and circular manufacturing, whilst reinforcing the complementarity between non- technological and technological innovation. This research also addresses concerns about potential conflicts in achieving different types of CE performance simultaneously. By analyzing firm performance from a holistic perspective, our study confirms that CE implementation leads to environmental, market and social performance improvements together with the moderating role of technological turbulence.

The impact of environmental sustainability on willingness to invest in startups: A survey among private investors

AbstractThis study investigates the impact of environmental sustainability on willingness to invest (WTI) in startups vs. established companies. Using data from a survey among private investors, we compare measures of WTI and the perceived return–risk ratio (RRR) for both environmentally sustainable and non‐environmentally sustainable startups and established companies. The results indicate that environmental sustainability significantly and positively influences WTI for both startups and established companies, with a notably stronger effect for startups. Non‐environmental sustainability significantly decreases WTI. Environmental sustainability has a significantly positive impact on the perceived RRR for both startups and established companies, although startups are rewarded more than established companies for environmentally sustainable practices. This highlights that entrepreneurs have a financial incentive to prioritize environmental impact, and the demand for environmental sustainability can provide startups with an advantage in capital raising. This research contributes to the limited literature regarding sustainable entrepreneurship and environmental sustainability's specific impact on WTI.

Amplifying Cognitive Functions in Amateur Esports Athletes: The Impact of Short-Term Virtual Reality Training on Reaction Time, Motor Time, and Eye-Hand Coordination.

Electronic sports (esports) have grown into a major competitive field in today's digital landscape, attracting the interest of established companies and evolving into a fast-growing industry. Cognitive function, including reaction time, motor time, and eye-hand coordination, plays a crucial role in e-athlete performance. This study aims to examine the impact of VR training on these cognitive functions in amateur e-athletes. The study involved 66 amateur e-athletes (45 men and 21 women, aged 19-41, with a mean age of 23.96 ± 3.90 years) who reported active, non-professional involvement in esports. Participants were randomly assigned to an experimental group (E) (n = 32) and a control group (C) (n = 34), with initial comparisons confirming no significant differences in daily gaming habits, esports experience, or age between groups. The E group completed 15-minute daily training sessions using the VR game Beat Saber over eight consecutive days. The results demonstrated that VR training significantly improved eye-hand coordination in the experimental group, although there were no notable effects on reaction time or motor time. These findings suggest that VR training may be an effective method to enhance certain cognitive functions, specifically eye-hand coordination, among amateur e-athletes. This could offer a valuable approach for performance improvement in this rapidly growing field.

The Coming of Age of Venture Capital Investing in the New Fields of the Emerging MOGI Sectors: A Snapshot for the Future: Part 2

Venture Capital (VC) has become a chosen tool of investment in the areas of business where there seems to be potent promise but yet immature in terms of market, customer acceptance and political dynamics. Such uncertainties make bankers both nervous and hesitant,and where the risk takers like venture capitals thrive. In the first part of the article we discussed about how mineral,oil& gas and energy companies are becoming both investors of VC and attractive destinations for investment by other VCs. The VCs are mostly either Private Equities (PE) or the venture funds of established companies. They mostly invest in emerging technologies and risky, yet promising, opportunities. In this part we discuss how the risks are assessed and mitigated, what takes one to be the VC fund manager and the current dynamics in the VC investments. Risky as they are, VC investors always look for reasonable profit to exit investments, for the next set of investors to pursue the opportunities with the omnipresent risks.

Mechanism of introduction of quality management system at the enterprises of the construction industry: case of the Republic of Kazakhstan

Purpose – The aim of the research was to apply the principles of the quality management system in order to establish a framework for implementing quality management practices within the construction industry. Research methodology – The study involved analysing the global experience of certifying enterprises according to ISO 9001 standards. The research used a qualitative approach, analysing QMS documentation, case studies, and literature to gain a comprehensive understanding of QMS implementation in established companies. Findings – It resulted in the development of a system model for introducing and implementing the quality management system in construction industry enterprises, following the ISO 9001 standard. Practical implications – The enterprises of the Republic of Kazakhstan are not exceptions from world practice, including the enterprises of the construction industry. However, there are few construction industry enterprises that would be certified according to quality management standards, including the ISO 9001 standard. Some do not have the financial and human resources to implement a quality management system, others lack understanding of where to start. Originality/Value – The study also focused on generalising and providing detailed insights into the processes involved in implementing the quality management system at construction industry enterprises.

Venture Clienting in Corporate Practice: What type of Established Companies are Using the Venture Client Model?

Start-ups have become a pillar of EC' open innovation initiatives. With the aim of accessing start-up innovation, established companies (EC) use various corporate venturing modes. However, as established corporate venturing modes (e.g. corporate venture capital or accelerators) do not provide direct access to start-up innovation, the venture client model (VCLM) is receiving increasing attention in corporate practice. In the VCLM, ECs become paying customers of start-ups without taking equity - they become venture clients. In joint pilot projects, they apply start-up solutions to their products, processes or business models in order to solve relevant business problems and create strategic impact for increased competitiveness. The literature lists different EC using the VCLM such as BMW, Bosch, Continental, Daimler, Siemens, or ZF. This suggests that the VCLM is only used in EC with tens of thousands of employees, from Germany and in technology-intensive sectors such as automotive, mechanical engineering or telecommunications. On the other hand, GIMMY describes the suitability of the VCLM for any EC. However, in order to develop practical solutions to the challenges of the VCLM (e.g. slow purchasing, legal and IT processes or lack of acceptance of start-ups as collaboration partners), it is necessary to know the users (type of EC) of these solutions. Therefore, the aim of this paper is to characterize the EC using the VCLM with respect to industry, size and regionality.

Creative-Rational Tensions in Game Development

In this paper, we discuss an ethnographic field study conducted with a single 8-person development team operating within an established indie game company located in Copenhagen, Denmark, to explore how members of a development team – in this case mainly programmers and designers – coordinate their design ideas and development processes. In a view that accepts “the heterogeneity of production logics within the games industry” (Kerr 2017, 76), our study of a single company in Denmark contributes new insights on organized and managed team creativity by adding to this pool of varying forms of development. The paper inquires and develops a perspective to analyse collaborative game-making within a studio workplace. We explore two formats of game development team meetings, Sprint Reviews and Sprint Retrospectives, to understand the ways in which teams work together to balance ‘creative-rational tensions’ (Tschang 2007) between given expectations and deadlines as well as personal expressive interests.

Resources and dynamic capabilities in startups

PurposeOperating in a market of scarcity and uncertainty, the startups have stood out by contributing to changing the economy and society, a new type of management. This study analyses how startup companies may develop dynamic capabilities from the resources present in their ecosystems.Design/methodology/approachThrough a qualitative content analysis, we show different startup management and environmental features when compared with established companies.FindingsUnlike mature and established companies, startups develop innovative businesses, raise funds and develop competences quickly, anchoring themselves in differentiation and innovation. Results show different startup management and environmental features when compared with established companies.Research limitations/implicationsThe study contributes to the literature by identifying management elements in dynamic environments, thus expanding the application of the theory of dynamic and managerial capabilities.Practical implicationsThe study contributes to generating an instrument that assists entrepreneurs in the operationalization of their strategies through the use and development of their managerial capabilities and the orchestration of resources with the help of ecosystem actors.Originality/valueWe propose a framework with the main elements identified in the cases analyzed. Those elements may assist managers in orchestrating their resources in order to support ecosystem actors.

Is “Open” ready for investment? A venture capitalist’s dilemma

Learning outcomes Upon completion of the case study, student will be able to discuss valuation of new-age ventures and understand how it is different from the valuation of organisations with a longer history; analyse the considerations (quantitative and qualitative) while evaluating investments in new-age ventures; and develop a framework involving the various dimensions of investment readiness. Case overview/synopsis The fintech space in India has seen an upsurge of activities since 2016. The growth of Paytm, RazorPay and many such ventures and the drastic improvements in this ecosystem have been significant catalysts for this segment of new-age tech companies. Funding and valuations have seen a sharp increase, especially when businesses worldwide felt the after-effects of the pandemic, with India being home to a large number of unicorns, second only to the USA. Open Financial Technologies Ltd (OPEN TECH) is one such venture that claimed its spot as the 100th unicorn of India within a span of five years since inception. With a strong focus on disrupting the banking sector in India, this neo-bank aspires to be the equivalent of Stripe in India and eventually be a strong competitor in the international market. Richard O’Neil is an active investor in the fintech space, based out of the UK, and he is currently looking to expand the market by considering investment options. In the process, Richard and his team have identified India as a viable and competitive market, as new venture support and funding are increasingly emphasized through policies such as Startup India, Make in India and many such more to sustain and propel its benefits. As the team was exploring ventures worth investing, Open Financial Technologies caught their attention. However, Richard, given his experience across fields and being a seasoned private equity investor, realised that valuing new-age companies is as much an art as it is a science. Multiple quantitative and qualitative aspects need to be considered while relevance of traditional valuation techniques to put a value on such entrepreneurial ventures is questioned. At this juncture, he finds it crucial to evaluate the investment readiness of OPEN TECH. This case allows students to understand how valuation of new ventures is different from that of established companies and analyse the crucial factors worth considering while evaluating an investment proposal as a venture capitalist, which eventually helps shape the funding pitch of an entrepreneur in the space. Complexity academic level This case study can be useful for students undertaking graduate- and executive-level courses on business valuation and strategy and entrepreneurship, as well as entrepreneurial finance elective at the undergraduate level. One could use this case in courses on entrepreneurship and innovation, such as an introductory course on entrepreneurial finance and a course on venture capital and private equity. It also allows discussion on fintech and neobanking and the valuation of privately held companies. Supplementary materials Teaching notes are available for educators only. Subject code CSS 1: Accounting and finance.

Bottleneck to Success: Case Study on Scaling Up Issues of Indian Start-ups

The dynamic growth of start-up companies in India has significantly disrupted the business landscape. However, many start-ups encounter substantial setbacks during the scaling-up stage. This qualitative study explores the challenges faced by Indian start-ups as they scale their businesses. The findings reveal that the primary obstacles include the non-availability of financial resources, difficulties in acquiring the right talent, and challenges in achieving product acceptance. According to the Department for Promotion of Industry and Internal Trade (DPIIT), India is home to over 50,000 start-ups as of 2023, with a yearly growth rate of approximately 12-15%. Despite this robust growth, data shows that about 90% of Indian start-ups fail within the first five years, primarily due to scaling issues. This study highlights that limited access to financial resources remains a critical barrier, with start-ups often struggling to secure funding beyond the initial stages. Talent acquisition is another major hurdle, as start-ups compete with established companies for skilled professionals. Furthermore, gaining market acceptance for new products poses significant challenges due to high competition and market saturation. By developing a comprehensive model, the study demonstrates that government intervention can play a crucial role in addressing these challenges. Initiatives like the Startup India program, which offers tax benefits, easier compliance, and funding support, are steps in the right direction. Additionally, the results underscore the importance of clearly defining problem statements, exercising patience, and possessing a risk-taking ability as essential factors for the success of start-up companies.

The Kočevje Region Between the Hammer And the Anvil: a History of Political Experimentation

The article presents the historical development of the Kočevje region in light of political experimentation from the Second World War to present day. The core of the empirical study is the period between 1991 and 2021, when the Kočevje region confronted economic decline and social turmoil, which were a consequence of past political decisions. We studied the available literature and statistical data and conducted ten interviews with key local stakeholders, based on which we then identified three periods of the contemporary development of the Kočevje region. The post-independence transition (1991–2010) marked the destruction of industrial companies, the non-responsiveness of the local environment, and the overall stagnation in development. The establishment of new local government (after 2010) brought about a developmental shift, the economic revival, and a change in mentality. The current period (after 2016), on the other hand, represents the arrival of an established international company and an improvement in the external image of the Kočevje region.

The Impact of Political Risks on Foreign Companies’ Market Entry Strategies in China

This study explores the challenges faced by multinational companies operating in China, focusing on political risks and entry challenges. The analysis is based on five established companies: IBM (China) Co., Maersk Logistics (China) Co., Ltd., Schneider Electric (China) Co., Ltd., 3M China Limited, and Marriott International (Greater China) Limited. The findings reveal high risks associated with government regulations, cultural differences, intellectual property protection, trade barriers, compliance requirements, and technology/cybersecurity. Political challenges during market entry include concerns about intellectual property theft, piracy, and cyber espionage. In response, a strategic plan is proposed to mitigate these challenges, emphasizing financial cooperation, cultural adaptation, intellectual property management, trade compliance, and cybersecurity readiness. The goals include enhancing corporate image, reducing disputes, increasing market share, and achieving leadership in compliance and cybersecurity. Conclusions highlight the strategic approaches adopted by the analyzed companies and the necessity for careful consideration of regulatory environments. Recommendations include building local partnerships, investing in research and development, implementing sustainability initiatives, and developing comprehensive compliance systems. The proposed strategies aim to help foreign companies navigate the complex Chinese market successfully.

Business model innovation for reducing uncertainty in sustainability transitions: A case study of the wood construction industry

Sustainability transitions are a significant challenge that requires established industries to adopt innovative ways of doing business. Research suggests that while this is possible through business model innovation (BMI), risk avoidance by regime actors and high levels of future uncertainty act as barriers to successful transitions. Specifically, we lack knowledge about how established companies innovate their business model (BM) to reduce uncertainty related to sustainability transitions. We explore the case of a large forest‐based manufacturing company in the construction industry, Stora Enso. We find that, by pursuing transformative BMI and combining multiple value creation logics, a company can reduce different types of uncertainty while shaping its business ecosystem towards more sustainable opportunities. We show that the BM can serve as an organizational tool for collectively exploring new knowledge, reducing uncertainty and driving change in a business ecosystem.

Exploring innovativeness, need for uniqueness and brand tiers in the sharing economy

Purpose In a context where the sharing economy (SE) plays an important role in the transformation of today’s business landscape, profoundly changing the behavior of consumers and many established companies, some companies have begun to adapt to SE by incorporating its value propositions into their business models. Therefore, the purpose of this paper is to study the role of consumer innovativeness, brand levels and the need for uniqueness on the way to attitudes and intentions to participate in SE. Design/methodology/approach This study collected the data through an online user survey, achieving a total sample of 717. The data were first analyzed using structural equation modeling and then combined with the use of the PROCESS macro. Findings The findings provide empirical evidence of the antecedents of consumer innovativeness in a SE context and its role in explaining consumer attitudes and intentions to participate in non-ownership consumption. Furthermore, they also demonstrate that brand tiers and the need for uniqueness moderate the relationship between intentions and participation. Originality/value The results of this study contribute to the theoretical development of the SE by presenting the first conceptual model that considers including the brand tiers effect and connects it to two leading theories on consumer behavior (diffusion of innovations theory and uniqueness theory). In addition, the study’s findings provide valuable insights for sharing platforms and traditional companies that choose to participate in the collaborative economy.

TECHNOLOGICAL DISRUPTION AND ENTREPRENEURIAL BEHAVIOR

The role of technological disruption in transforming the business environment and its challenges for established companies have been widely discussed in recent decades. In this scenario, entrepreneurial behavior can be crucial in shaping effective strategic responses of these organizations in the face of disruption contexts. This article explores the intersection between these themes, technological disruption, and entrepreneurial behavior, based on the studies of Filion (1993) and Si and Chen (2020). The research methodology is exploratory, qualitative, and bibliographic. The results indicate that personal characteristics of entrepreneurs can influence strategic responses to disruption. It concludes that future research should explore the impact of behavioral factors on the entrepreneurial capacity to deal with disruptive innovations and technological disruption, contributing to the literature in the areas of strategy, technology, and organizational behavior.

Enron’s Collapse and the Emergence of a New Magnitude of Ethics within Corporate Governance

In this study, it is argued that the collapse of a single company – Enron – in the USA represented one of the most crucial factors underlying the emergence of ethics with a new dimension in the global business strategy. Enron, one of the most profitable companies in the USA in 1990s, experienced a completely unprecedented disaster and the ensuing investigations revealed that a lack of ethical integrity among the high officials was one of the most crucial reasons for the downfall of such an established company. Shortly after Enron collapse, a number of companies in different countries faced similar consequences and a crucial factor that they all appeared to share was unethical practices. The core aim of this study is to explore how the think-tanks in the corporate world made a quick response regarding the development of the ethical practices within the activities of corporations and how ethics gained greater magnitude within the administration of business activities. To achieve this aim, we undertook a comprehensive content analysis of the relevant secondary data substantiated by a Focus Group Discussion (FGD) attended by academics working in the field of corporate governance, in order to gain relevant insights in the study objectives. The scholarly views of the individuals who participated in the FGD, we believe, can add value to our results by enriching the study. The study findings suggest that the downfall of Enron immediately and hugely contributed towards raising the profile of ethics and the introduction of a series of ethical codes regarding corporate performances.

Review of ISO 45001:2018 Implementation as Prevention Effort from Fire Occurred in PT Pertamina (Persero) Refinery Unit VI Balongan

Abstract PT Pertamina Refinery Unit VI Balongan has made a significant contribution in providing good income for PT Pertamina and the state. A large number of petroleum processing products produced daily cause a high risk of fire. Fires and explosions at oil refineries are still common even though major oil companies have occupational safety and health systems in place. Monitoring errors and the absence of re-evaluation of established companies for a long time are the reasons why this can happen. This research uses a descriptive approach through literature studies to collect data and obtain the necessary information by studying various journals, conference proceedings, books, and written references. The results of the research were obtained by PT Pertamina Refinery Unit VI Balongan, which applies several rules regarding work safety from ISO 45001: 2018 based on technical and non-technical aspects. In the technical aspect, the rules include the installation of warning signs and signs, noise, temperature, lighting intensity and personal safety equipment. Meanwhile, the regulations include administration and licensing as Safe Work Permits in non-technical aspects. However, based on several parameters of the application of ISO 45001: 2018, aspects that do not meet the standards are found and can be a problem, resulting in the potential for fire. This study concluded that PT Pertamina Refinery Unit VI Balongan must be able to provide firmness in implementing work safety rules or procedures for its employees.

How HR managers develop ideas about HR reform: the role of inter-corporate knowledge exchange in Japan

Following a call for actor-centric research in HRM, we look at the modes how HR managers acquire HR knowledge. Our interview study with HR managers of large established companies in Japan finds a clear preference for direct inter-corporate knowledge exchanges instead of the engagement of outside consultants. Discussing our findings, we explain the reasons for this preference. ing from the case of Japan, we then propose with reference to institutional theory and isomorphism that the way HR knowledge is spread is linked to the nature of employment systems. In external labour markets, HR knowledge has been reported to be predominantly spread through business consultants, educational institutions, and career changes of HR professionals, resulting in normative isomorphism. We propose that in internal labour markets, like Japan’s, companies resort to direct inter-corporate knowledge exchange, which leads to mimetic isomorphism.