New Ventures In China Research Articles

Strategic Flexibility and Exploiting Capability Advantage: The Moderating Role of Managerial Ties

In emerging economies, exploiting capability advantage is critical to new ventures¡¯ survival and prosperity. Though extant research has noticed the important role of valuable resources in this process, it largely ignores the utilization of strategic flexibility (via resource flexibility and coordination flexibility) in effectively exploiting capability advantage. Addressing this oversight, we examine different direct effects of resource flexibility and coordination flexibility on exploiting capability advantage for new ventures in China. Additionally, we investigate whether managerial ties (via ties with other firms and ties with the government) play a catalyst or retardant role in this process. Our empirical results suggest that while coordination flexibility has a pure positive effect on exploiting capability advantage, resource flexibility has an inverted U-shaped effect. Further, ties with other firms will advance the positive effect of resource flexibility but impede the exertion of coordination flexibility, while ties with the government can promote the utilization of strategic flexibility on exploiting capability advantage.

Institutional Pluralism and New Venture Growth in China: A Three Way Interaction

Competing views exist on the relative role of market orientation and political networking on new venture performance. Although researchers holding market orientation logics argues market orientation foster customer values and thus new ventures performance, critics with government domination logics have indicated that political networking can play a substantive role in transition economy because of under-development formal institution and the existence of dysfunctional competition. This debate can be addressed by introducing institutional pluralism perspective and including dysfunctional competition and political networking as moderators of the relationship between market orientation and new venture performance. Our analysis of 209 new ventures in China supported a three-way interaction and shows that when in a low-level dysfunctional competition context, political networking strengthens the positive effect of market orientation on new ventures performance, by contrast, in a high-level dysfunctional competition context, political networking weakens the positive effect of market orientation on new ventures performance.

The Incubators, Venture Capital, and New Ventures in China

This paper reviews the evolution of China's technology business incubators (TBIs), venture capital (VC) and their interaction in the past 20 years. By using the regression analysis of a sample of 344 TBIs in China, we try to explain how the incubators assist new ventures in obtaining venture capital. The findings highlight the important role of network and government grants in building capabilities for new ventures to obtain venture capital, but the influence of business support of incubators is insignificant. Finally, managerial implications and future research directions are discussed.

Technology Capability and the Internationalization Strategies of New Ventures

This study investigates the impact of technological capability and the combination of technological capability, networking capability and financial capital on growth strategies adopted by new ventures in China. Technological capability needs leveraging through the process of combining with other capabilities. The results show that the interaction between technological capability and networking capability increases the possibility that a new venture chooses an internationalisation strategy. Technology capability provides a base to allow networks to have a positive impact on internationalisation strategies. The findings from the study provide a better understanding of technology capability and its impact on internationalisation strategies. This study also generates some important implications for high-tech new ventures in emerging economies.

Competitive Advantages in the First Product of New Ventures

The new venture launching its first product faces substantial risks and is typically resource-poor. Moreover, failure with the first product is closely related to failure of the new venture itself, as investors seek alternate investments with better track records. While much guidance appears in the literature for large, established firms developing and launching new products, little research has examined the specific challenges faced by entrepreneurial startups launching first products. We develop a model of competitive advantage for studying the development of the new venture's first product. We identify and investigate the skills, resources, and knowledge needed for achieving positional advantage and, ultimately, developing a successful first product. We collect data from 694 first products launched by new ventures in China to test our model. While most of our hypotheses are supported, we obtain some interesting findings regarding the stage in the development process when technology resources and skills, and marketing resources and skills have the greatest effects on product performance. Our research makes several contributions to engineering management, innovation, and entrepreneurship literatures. Finally, we provide managerial insights on how the entrepreneur should acquire resources and knowledge in order to improve the performance of the first product.

Acquisition of resources, formal organization and entrepreneurial orientation of new ventures

PurposeThe purpose of this paper is to assess the impact of the acquisition of resources and formal organization on entrepreneurial orientation (EO) of new ventures.Design/methodology/approachThe research was conducted using an original data set of 199 new ventures in China. The data were analyzed through regressing models.FindingsIt was found that new ventures experiencing difficulty in acquiring resources have higher levels of EO; formal organization is associated with the proactiveness dimension of EO significantly and positively.Research limitations/implicationsFirst, the measures of EO were mainly used to study established firms. The measures of EO may need to be modified to take into account new ventures' uniqueness. Second, this study focused on new ventures operating in a specific geographical region, China.Practical implicationsNew ventures should build their formal management systems so that they can integrate as organic organizations to engage in entrepreneurial activities. New ventures lack regulations and their development mainly depends on entrepreneurs. The formal regulations can help new ventures better use and integrate the power of the whole organization systems to identify and explore external opportunities.Originality/valueResearch on EO has focused on established firms while the EO of new ventures is seldom studied. These findings indicate the uniqueness of new ventures and contribute to a better understanding of their behaviors.

Top management team conflict and entrepreneurial strategy making in China

How does top management team (TMT) conflict influence entrepreneurial strategy making of new ventures? With a sample of new ventures in China’s technology industries, this study examines the conditions under which TMT cognitive conflict and affective conflict are associated with entrepreneurial strategy making. We found that cognitive conflict among TMT members had a positive relationship with entrepreneurial strategy making. Further, the positive relationship between cognitive conflict and entrepreneurial strategy making was moderated by dysfunctional competition and team deftness.

Exploratory and Exploitative Learning in New Product Development: A Social Capital Perspective on New Technology Ventures in China

The authors examine the differential effects of the structural, relational, and cognitive dimensions of social capital on exploratory and exploitative learning in new product development in new ventures in China. In addition to investigating the potential nonlinear relationships between exploratory and exploitative learning and new product performance, the authors examine the relationship between the interaction of the two types of learning and new product performance. The findings suggest that different dimensions of social capital are indeed significantly related to the level of exploratory and exploitative learning. The results also support the argument that firms need a balance of exploratory and exploitative learning to enhance performance. The findings draw the attention of managers from multinational firms operating in China to the important role of social capital in enhancing new product performance.

The role of managers' political networking and functional experience in new venture performance: Evidence from China's transition economy

AbstractDrawing upon the resource‐based view and transaction cost economics, this study aims to examine how various types of managerial resources (i.e., political networking and functional experience) can be beneficial to new ventures in a transition economy. Using survey data from a sample of new ventures in China's high‐technology industries, we demonstrate that managers' political networking and functional experience are positively related to new venture performance. We also find that the positive relationship between functional experience and new venture performance is moderated by the type of ownership of the ventures and the level of dysfunctional competition in their environments. Theoretical and managerial implications are discussed. Copyright © 2007 John Wiley & Sons, Ltd.

The contingent value of marketing strategy innovativeness for product development performance in Chinese new technology ventures

This study extends research on entrepreneurial behavior by investigating the relationship between the marketing strategy innovativeness (MSI) and new product performance in technology-based new ventures in China. Specifically, premised on contingent resource-based view we argue that MSI is a firm capability that must be bundled with external managerial relationships and be deployed in the appropriate environment to ensure its success. We found that the team's extra industry relationships and market dynamism enhanced the impact of MSI on new product performance. In contrast, top management team's intraindustry relationships, financial relationships, and technology dynamism hindered the impact of MSI on new product performance.

Entrepreneurial strategy making and performance in China's new technology ventures – the contingency effect of environments and firm competences

In this study we examine the contingency value of entrepreneurial strategy making with a sample of technology-based new ventures in China's emerging economy. Our results show that the relationship between entrepreneurial strategy making and performance is moderated by both environmental factors and firm competences. Specifically, entrepreneurial strategy making has a positive relationship with performance when the environment is highly uncertain and when the firm has strong marketing competences.

Financing new ventures in China: System antecedents and institutionalization

China's system for funding new ventures is a relatively recent phenomenon emerging from decades of government-led technology policy and a still-transitioning business system. This paper first proposes a general framework in which this financing system is defined as the country-specific configuration of actors, rules and practices by which investment funds are pooled, investment targets identified, funds invested and monitored, and returns appropriated. The paper uses this framework to link the centralized government system of the 1980s to today's nascent venture capital industry. The analysis leads to policy and managerial implications, as well as a research agenda for further studies in the Chinese context and across different venture financing systems.

HOW DOES NEW VENTURE STRATEGY MATTER IN THE ENVIRONMENT-PERFORMANCE RELATIONSHIP?

Academy of Management Annual Meeting Proceedings includes abstracts of all papers and symposia presented at the annual conference, plus 6-page abridged versions of the “Best Papers” accepted for inclusion in the program (approximately 10%). Papers published in the Proceedings are abridged because presenting papers at their full length could preclude subsequent journal publication. Please contact the author(s) directly for the full papers. ArticlesHOW DOES NEW VENTURE STRATEGY MATTER IN THE ENVIRONMENT-PERFORMANCE RELATIONSHIP?Published Online:13 Dec 2017https://doi.org/10.5465/apbpp.2000.5438618AboutSectionsPDF/EPUB ToolsDownload CitationsAdd to favoritesTrack Citations ShareShare onFacebookTwitterLinkedInRedditEmail AbstractDrawing on environmental determinism and environmental management perspectives,this study examines the relationships between environment, strategy, and performance in new ventures. With data from 184 new ventures in China's high technology industries, we found that new venture strategies play differential roles in dealing with different environmental dimensions to affect performance. In particular, our results suggest that marketing differentiation plays a significant role in mediating the positive effect of perceived industry growth on performance for opportunity exploration. Market breadth and marketing alliance significantly moderate the negative impact of environmental hostility on performance. Product innovation plays both mediating and moderating roles in the environment-performance relationship. Theoretical and managerial implications are discussed.FiguresReferencesRelatedDetails Vol. 2000, No. 1 Permissions Metrics in the past 12 months History Published online 13 December 2017 Published in print 1 August 2000 InformationCopyright of Academy of Management Journal is the property of Academy of Management and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder’s express written permission. However, users may print, download, or email articles for individual use.KeywordsNEW business enterprises -- ManagementJOINT venturesBUSINESS enterprises -- Environmental aspectsENVIRONMENTAL engineeringSTRATEGIC planningHIGH technology industriesBUSINESS failuresSOCIAL responsibility of businessGROWTH industriesINNOVATIONS in businessINNOVATION managementDownload PDF