New Ventures Research Articles

The impact of entrepreneurial marketing on new venture brand image and performance: a capability perspective

PurposeThis study aims to examine the underlying mechanisms through which entrepreneurial marketing (EM) promotes the development of a favorable brand image and enhances sales growth and market share in new ventures (NVs).Design/methodology/approachThe authors tested the theoretical model using a multi-informant design in which survey data were collected from NV entrepreneurs and marketing managers. Hypotheses were tested using linear regression and PROCESS analysis.FindingsThe authors demonstrate the significance of EM as comprising two NV capabilities – first, the level of complementarity between entrepreneurial orientation (EO) and market orientation (MO) as a dynamic capability, and second, brand management capabilities (BMCs) as an operational capability – in shaping a favorable NV brand image and promoting market performance.Research limitations/implicationsThe authors offer a novel perspective by demonstrating that EO and MO yield complementarities in driving NVs’ BMCs, which, in turn, drive brand image development and market performance for NVs. In doing so, the authors demonstrate novel theoretical implications for the relevance of EM to NV branding, which, to date, has received scant attention in the literature.Practical implicationsThe authors identify a potential avenue for entrepreneurs and NV managers to mitigate the potential failure rates by simultaneously pursuing a higher level of EO and MO and investing in brand-building activities. Such efforts can help enhance brand image, drive sales growth and foster long-term success.Originality/valueTo the best of the authors’ knowledge, this study is the first to include brand capabilities as an element of EM, examine EM in NV brand image development and identify the role of EM capabilities relevant to NV brand building and market performance simultaneously.

The role of marketing in new ventures: How marketing activities should be organized in firms’ infancy

Although marketing activities are vital for new ventures (NVs) to ensure growth and survival, previous research is silent on how to organize them in firms’ infancy. The entrepreneurship literature focuses on which marketing activities to perform in NVs but not on how to organize these activities, whereas the marketing literature concentrates on how to organize marketing activities in established firms but not in NVs, which face specific opportunities and challenges in their early stage of development. This article aims to tackle this research gap by examining marketing’s role within NVs’ organization. Drawing on in-depth interviews with managers, we identify two key organizational dimensions: marketing’s dispersion (related to the proliferation and, thus, wide anchoring of marketing responsibilities) and marketing’s structuration (related to the manifestation and, thus, deep anchoring of marketing responsibilities). Through a field survey and archival data, we show that marketing’s dispersion enhances NV profitability, while marketing’s structuration decreases it, and that with increasing marketing influence (i.e., power of marketing actors) in NVs and NV maturity (i.e., age and size), this diametrical pattern of effects becomes less pronounced. Overall, the findings provide novel theoretical and practical insights into the organizational design of marketing in firms’ infancy.

“Live in the present” or “focus on the future”: the effects of ambidextrous marketing capabilities on entrepreneurial performance

PurposeAlthough the published studies have noted that ambidextrous marketing capabilities (AMCs) could improve firm performance, they seem to ignore the differences between mature corporations and new ventures (NVs). Generally, it is impossible for NVs to simultaneously possess two types of marketing capabilities such as marketing exploitation and marketing exploration. They have to make a trade-off between the present market and the future market. This paper seeks to investigate the causal relationship between AMCs (exploitation-dominated AMCs and exploration-dominated AMCs) and entrepreneurial performance in the context of NVs. Furthermore, this paper attempts to explore the internal interaction of entrepreneurial orientation and the external interaction of competitive intensity.Design/methodology/approachThis paper develops a theoretical framework according to configuration theory and investigates the causal relationship between AMCs (exploration-dominated AMCs and exploitation-dominated AMCs) and entrepreneurial performance as well as the moderating roles played by entrepreneurial orientation and competitive intensity based on the survey data collected from 257 Chinese NVs.FindingsThe results show that both the exploration-dominated AMCs and the exploitation-dominated AMCs have significant positive effects on entrepreneurial performance. However, the moderating roles played by entrepreneurial orientation and competitive intensity in the causal relationships are different and complicated. Specifically, entrepreneurial orientation negatively moderates the relationship between exploitation-dominated AMCs and entrepreneurial performance and positively moderates the relationship between exploration-dominated AMCs and entrepreneurial performance; competitive intensity positively moderates the relationship between exploitation-dominated AMCs and entrepreneurial performance and negatively moderates the relationship between exploration-dominated AMCs and entrepreneurial performance.Originality/valueThis paper plays a pioneering role in enriching the theoretical connotation of AMCs, improving the theoretical framework of AMCs and expanding the theoretical application of AMCs by analyzing and confirming the causal relationships between AMCs and entrepreneurial performance in the context of NVs, which is different from the previous studies. In addition, this paper also makes a valuable contribution to management practices, such as leading NVs, to match different types of AMCs with internal and external conditions for improving entrepreneurial performance.

How do business incubators govern incubation relationships with different new ventures?

For both business incubators (BIs) and new ventures (NVs), the incubation relationship holds great significance. Prior studies have focused on the effect of incubation relationships, namely, the performance of NVs and the performance of BIs. However, they have neglected how BIs govern incubation relationships with different NVs, which is the prerequisite to translating incubation relationships between BIs and NVs into performance. To bridge this gap, we adopt typologies and the embedded case study method to analyze one BI and eight representative NVs of the BI. First, we introduce the team anticipations and project anticipations of the anticipatory bases view to develop a two-by-two matrix that accounts for four types of NVs, including star incubation NVs, team incubation NVs, project incubation NVs and ordinary incubation NVs. Furthermore, we find that BIs adopt four differentiated corresponding governance mechanisms for incubation relationships with different types of NVs including a trust mechanism, trust-based contract mechanism, contract-based trust mechanism, and contract mechanism. Finally, based on the governance mechanisms for different types of NVs, we present a framework for the governance mechanism of incubation relationships by BIs. We also discuss the wider implications for both BIs and NVs.

INITIAL COIN OFFERING (ICO) – AN INNOVATIVE WAY TO FINANCE NEW VENTURES

ABSTRACT Initial Coin Offering' or 'ICO' is a way employed by start-ups or projects for raising funds from various investors through creating and selling tokens. Initial coin offering (ICO) consists of a mechanism for funding very innovative ventures using blockchain based fundraising platforms. Due to the increasing application of blockchain in general and fundraising through ICO in particular, the area is seeking considerable attention from the scholars around the world. This present study shall highlight the existing status of development along with the contribution of researchers in this emerging area of study. The current study thoroughly reviews studies on Initial Coin Offerings. The study would highlight the current trends and latest development in the literature on the topic with the help of bibliometric analysis. Initial Coin offering or ICO is adding tremendous value to all stakeholders of business including entrepreneurs, promoters and investors with worldwide accessibility and ease of convenience for funding new ventures and also as a modern investment avenue. Keywords Initial Coin Offering, ICOs, Blockchain, Crowdfunding, Bitcoin

Entrepreneurial Marketing and New Venture Performance: The Mediating Effects of Ambidextrous Innovation

Entrepreneurial Marketing has a significant effect on new ventures’ performance. However, the findings have been mixed and conflicting. There is still little in-depth exploration of its specific working mechanism based on two distinct literatures streams from ambidextrous innovation and entrepreneurial marketing. We present an integrated framework for analyzing entrepreneurial marketing, ambidextrous innovation and new venture performance (NVP). By conducting an empirical studyon a sample of 883 new ventures (NVs) in Anhui province in China, the study found that: (a) EM is an important driver of NVP and only five dimensions of EM have positively effects on NVP ,including proactiveness, opportunity-focus, innovations, risk-taking and resource leveraging. (b) Both exploration innovation and exploitation innovation advance NVP. (c) The ambidextrous innovation did not affect NVP significantly. (d) Exploration innovation and exploitation innovation partly mediate the relationship between EM and NVP.

Performance of New Ventures in Korea: Modeling Product and Process Improvements Based on Choice of Foreign Market Entry Mode

The purpose of this study is to analyze if product or process improvement play mediating roles in the performance of new ventures in Korea from a resource-based view. It further examines whether there is a difference between the non-equity entry mode and equity entry mode of a foreign market. In accordance with this purpose, data were collected from surveys on venture enterprises in Korea and analysis was done using a structural equation model. The results of this study found that innovation (product and process improvement) is affected by internationalization, entrepreneurship, and hostile environment. SMEs and/or new ventures (NVs) tend to make efforts to improve their products in order to create competitive advantage in their target markets when they advance into new foreign markets. Entrepreneurship was verified to be a vital factor in innovation. The hostile environment of a foreign market was found to have a significant effect on process improvement. Analysis showed that innovation played a partial mediating role between independent variables and management performance. In addition, structural relationship among them exhibited partial differences depending on the foreign market entry mode.

The Speed and Extent of New Venture Internationalisation in the Emerging Economy Context

Objective : The objective of this paper is to explore to what extent the patterns of the internationalisation process described in the new venture (NV) internationalisation theory, developed on the experience and practice of advanced economy firms, apply to the emerging economy context. Research Design & Methods : The paper is a systematic literature review developed on the basis of peer reviewed journal articles on NV internationalisation in emerging economies. It critically evaluates the applicability of arguments proposed by the NV internationalisation theory to the emerging economy context. Findings: In contrast to firms from advanced economies, internationalisation of NV from emerging economies is mainly driven by push factors related to their domestic markets. Transportation, communication and digital technology play a less relevant role in emerging economies; besides, their significance is more context specific; while their absence does not inhibit rapid internationalisation. Implications & Recommendations: To better understand the process of NV internationalisation in the emerging economy context, it is necessary to study to what extent other theoretical logics contribute to its explication. Further research should also seek to synthesise findings of research on other major theoretical frameworks. Contribution & Value Added: The paper contributes to the NV internationalisation theory by offering some propositions on the specifics of international entrepreneurship in the emerging economy context.

New product development in new ventures: the quest for resources

Innovation and new product development (NPD) are becoming more important as strategic initiatives. Yet, innovation creates challenges for most existing organisations, thus leading to the emergence of new ventures (NVs) as vehicles to deliver innovation. NVs present owners and management with unique opportunities and challenges. On one hand, the NV can focus its attention on specific innovation(s) without having to compete with other goals and departments for resource access. Resources are critical to the successful development and launch of new products and can come from financial lenders and/or suppliers. However, because they are new and because their only asset of worth is the highly risky innovation, NVs are at a strong disadvantage in securing access to these resources. This study explores the effectiveness of using personal equity investments as a strategy for securing access and for enhancing NPD success. Using signalling theory as the theoretical framework and data from 745 NPD projects representing manufacturing innovations, this study finds that equity investment is particularly successful in its NPD impact although not impactful with suppliers. As a signal, it can be argued that equity is a strong, high-quality signal. Reasons for these findings and directions for future research are provided.

Legitimation of New Ventures: A Review and Research Programme

AbstractResearch on how new ventures (NVs) achieve legitimacy is fragmented and rests on taken‐for‐granted assumptions that require problematization. Following a systematic literature review, I identify five distinct perspectives on NV legitimation: an institutional perspective, a cultural entrepreneurship perspective, an ecological perspective, an impression management perspective, and a social movement perspective. After comparing and contrasting these perspectives, I synthesize them into a generative and integrative typology. Based on this typology, I develop a new research programme. The programme widens the extant scholarship agenda by challenging its shared assumptions and contributes to further integration of the literature by building bridges between perspectives.

The Influence of Entrepreneurs’ Credentials and Impression Management Behaviors on Perceptions of New Venture Legitimacy

We examine how entrepreneurs’ behaviors related to credentials and impression management (IM) impact perceptions of new venture (NV) legitimacy. Results from this experiment, as hypothesized, show that entrepreneurs’ credentials and IM behaviors are positively related to legitimacy perceptions. Contrary to expectations, however, findings do not support either interaction hypothesis when credentials are high or low. We discuss how these findings illustrate the importance of entrepreneurs’ behaviors during the NV creation process and outline multiple directions for future research.

How can New Ventures Build Reputation? An Exploratory Study

In this paper, we explore the processes and mechanisms of reputation-building by new ventures (NVs), using a grounded theory-building approach from case studies. Based on interviews with experienced entrepreneurs, supplemented by secondary data on their NVs, we identify several types of activities that may help NVs build their initial reputations. We find that NVs accumulate one of two types of reputation: generalized reputation with large groups of distant stakeholders or local reputation with a small group of local stakeholders. Our analyses suggest that using symbolic activities, as well as investments in human capital and social capital may help an NV accumulate generalized reputation, whereas investments in product quality together with building close relationships with customers may help an NV build local reputation. What type of reputation an NV would try to achieve and what activities it would emphasize appear to be related to the type of product that the NV offers.

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