Session 101

Opportunities & Founders

Track K

Date: Monday, October 12, 2009


Time: 17:15 – 18:30

Common Ground

Room: Meeting Room 10

David Deeds, University of St. Thomas

Title: An Austrian Economics View of the Market Process: The Impact of Entrepreneurial Actions on Market Discourse


  • R. Scott Livengood, Ohio State University

Abstract: The Austrian school of economics has long studied the interaction of market participants – particularly entrepreneurs – and their impact on the market process. Central to this process, however, is the oft-overlooked phenomenon of market discourse, or the objective and subjective information exchanged in the marketplace that helps market participants make sense of firms’ entrepreneurial actions by. In this paper, I examine how entrepreneurial actions drive the market process and explore market discourse as a powerful mechanism by which these new actions get accepted or rejected by the market, noting the importance of characteristics of the action, the firms, and the industry.

Title: Drivers of Opportunity Identification and Capture: Learning from Past Successes and Failures or Entrepreneurial Alertness and Search?


  • Daniel Malter, Harvard Business School

Abstract: This study merges concepts of entrepreneurial alertness and search with concepts of the learning literature and studies their differential impact. The effects of learning from past successes and failures as well as the effect of alertness and search through observation are studied. I find that observing a dynamic market benefits participants in competitive markets, whereas experiences from prior successes and failures do not. The results imply that alertness to the market has a direct positive effect on entrepreneurial rents. The structure of the results suggests that the know-when of opportunity capture can be more important than the know-how.

Title: Dynamic Entrepreneurial Capabilities: An Innovative Path to Innovation in Entrepreneurial Settings


  • Andrea Lanza, University of Calabria
  • Mariacarmela Passarelli, University of Calabria

Abstract: The aim of this paper is to examine how a small entrepreneurial firm can achieve successful product innovation and technology change by substituting the traditional drivers for innovation with dynamic capabilities. We used a longitudinal case study methodology to investigate a seven-year technology innovation undertaken by Vetromed, a small Italian entrepreneurial firm, from its decision, in 1999, until its successful implementation, in 2006. On the basis of our findings, we introduce the concept of dynamic entrepreneurial capability, defined as a higher order ability to enact and integrate three substantive entrepreneurial capabilities, namely: distributed entrepreneurial insights, entrepreneurial heuristics and entrepreneurial flexibility. Our findings suggest that dynamic entrepreneurial capability can substitute for the traditional drivers of innovation, allowing small entrepreneurial firms to pursue successful innovation.

Title: Founders’ Emotion Regulation Versatility and Differential Resource Creation: The Affective Roots of Firms’ Heterogeneous Resources


  • Christoph Zott, IESE Business School
  • Quy Huy, INSEAD

Abstract: Through a longitudinal qualitative field study of six UK-based ventures, we found noticeable differences in how organization founders regulated their own emotions. We noticed that variation in emotion regulation patterns (to which we refer as "emotion regulation versatility") mattered differentially for the building of new organizations, specifically, for their ability to create resources - from the founder (self) and important stakeholders (others). Our research thus links micro founder-level emotion regulation behaviors with macro organizational development. It addresses an important gap in the strategy literature by revealing some of the affect-based mechanisms that explain the emergence of firms' heterogeneous resource positions.

Title: Opportunities in Mind: The Creation of Knowledge in Competitive Contexts


  • Johanna Jaskari, Aalto University

Abstract: Opportunities and uncertainty are created in mind. This theoretical article explores how entrepreneurs construct opportunities in competitive contexts. Prior knowledge enables entrepreneurs to act in the present as to change the future by choosing distinct causal patterns. In Robbinsian contexts, causal patterns are known. Kirznerian entrepreneurs discover how current causal patterns are illusions, whereas Schumpeterian entrepreneurs create new causal patterns, ignoring others. For others, the Kirznerian and Schumpeterian entrepreneurs’ actions occur as shocks. Competition occurs in the short, uncertain interval before causal patterns between attributes become generally understood, whereas competitive advantages emerge after entrepreneurial action. The uncertainty created by financial crises and the opportunities created by climate change are competitive contexts that can be explained in terms of Robbinsian, Kirznerian, and Schumpeterian causal patterns.

Title: The Genesis of Entrepreneurial Founding Partnerships: Why Do Some Co-Found?


  • William Forster, Lehigh University

Abstract: Highly successful entrepreneurial partnerships are extremely visible in our society. Iconic firms such as Hewlett-Packard, Google, and Microsoft were created by entrepreneurial partnerships, and their founders’ influences are legendary and enduring. However we know very little about why some entrepreneurs choose to create organizations together with others while the majority end up going it alone. This study uses a two phase, mixed methods approach to answer this question. Qualitative methods were used to generate grounded theory which was then statistically tested using a nationally reprehensive sample of nascent entrepreneurs. Results indicate that greater availability of partnership candidates and lower environmental uncertainty increase the propensity to partner. Also, larger partnerships are more likely to occur in ventures that pursue stable, high technology opportunities.

All Sessions in Track K...

Sun: 10:00 – 11:30
Session 254: Developing a Game Plan for Strategy Research on Social Entrepreneurship
Sun: 13:00 – 14:30
Session 253: Knowledge Spillovers and Strategic Entrepreneurship
Sun: 15:00 – 16:30
Session 252: Key Issues and Emerging Questions in Entrepreneurial Strategy Research
Sun: 16:30 – 17:30
Session 315: Entrepreneurship & Strategy, IG Meeting
Mon: 12:45 – 14:00
Session 102: Networks, Alliances and Entrepreneurship
Session 244: Entrepreneurship in Emerging and Transition Economies
Mon: 15:45 – 17:00
Session 100: Founders, Founding Conditions and Human Capital
Session 249: Examining Entrepreneurial Phenomena at Multiple Levels
Mon: 17:15 – 18:30
Session 101: Opportunities & Founders
Session 248: Issues in Governance and Technology Commercialization in New Ventures
Tue: 10:00 – 11:15
Session 107: Current Thoughts on Entrepreneurship in Emerging and Transition Economies
Session 111: Opportunties, Uncertainty & Innovation in Entrepreneurial Ventures
Tue: 11:30 – 12:45
Session 106: Current Thoughts on Signaling and Venture Capital
Tue: 14:30 – 15:45
Session 108: The Impact of Institutions, Regions and Countries on Entrepreneurial Ventures
Wed: 10:00 – 11:15
Session 105: Current Research on Serial Entrepreneurs and Market Makers
Session 112: The Impacts of Diversification on Entrepreneurial Ventures
Wed: 11:30 – 12:45
Session 104: Employees Mobility and Corporate Entrepreneurship
Session 109: Current Research on Uncertainty and Entrepreneurship

Strategic Management Society

Washington DC