Session 111

Opportunties, Uncertainty & Innovation in Entrepreneurial Ventures

Track K

Date: Tuesday, October 13, 2009


Time: 10:00 – 11:15

Common Ground

Room: Meeting Room 10


Title: A Model of Entrepreneurial Competitive Moves: The Influence of Industry Context and Individual Factors


  • Lee Zane, Rider University
  • Tianxu Chen, Oakland University
  • Donna De Carolis, Drexel University

Abstract: Entrepreneurs compete in markets with significant uncertainty, and derive disparate outcomes. While prior research has used real options logic to explain entrepreneurs’ decisions under uncertainty, few if any have tied this logic to the characteristics of new ventures’ competitive moves. This paper discusses how entrepreneurs launch competitive moves, particularly the speed of action and intensity of action, under conditions with uncertainty and first mover advantage. We argue that the way entrepreneurs conduct competitive activities are contingent on their cognitive biases.

Title: Effect of Competition on Innovation and Project Performance in Start-Ups:Evidence From Biopharmaceutical Clinical Trials


  • Mazhar Islam, Drexel University

Abstract: In the proposed study, I examine how competition affects the new technology projects of start-ups. Specifically, I examine the competitive conditions under which start-ups reconfigure the governance structure of their technology projects through inter-organizational collaborations and the performance implications of these reconfigurations. I developed a theoretical framework based on the extant literature and twenty two interviews with the managers. In order to validate the framework, I intend to conduct econometric analyses on a novel dataset from the biopharmaceutical indstry that I am currently assembling. The results will make theoretical contributions to management scholarship and enhance the understanding of the interaction between competition and technology development from managerial and policy maker perspectives.

Title: Entrepreneurial Exit Decisions: The Influence of Product and Financial Market Uncertainty


  • Asda Chintakananda, National Institute of Development Administration

Abstract: This research develops a model of entrepreneurial exits through a merger or IPO process under the multidimensionality of uncertainty that firms face. In particular, this research empirically tests how firms respond to the different levels of uncertainty in both the product market and financial market. Hypotheses are developed and tested over 1,500 private venture capital-backed firms over a 15-year period. Results show different exit paths based on the source and level of uncertainty. High uncertainty in the stock market induces a higher likelihood of IPO launches, whereas high uncertainties in the product market induce a higher likelihood of mergers.

Title: Entrepreneurial Learning: Toward a Dynamic View


  • Joseph Ngijol, University of Paris III- Sorbonne Nouvelle
  • Hamid Bouchikhi, ESSEC Business School

Abstract: We examine how the entrepreneurial learning process takes place during the formation of business opportunities, as entrepreneurs move from an initial idea to a well-developed new product or service. Through a longitudinal case study of six ventures, we found that Kolb’s experiential learning model explained many of the behaviors we observed when used in a dynamic perspective tending to show how and why the entrepreneur’s learning style may change over time. The entrepreneurial learning processes studied are shown to fall into three types of path configurations through the model. This typology rests on factors which are linked to the entrepreneur’s personal attributes. The findings have implications for future research, practice and entrepreneurship training.

Title: Opportunities Taken and Lost


  • Gaurab Bhardwaj, Babson College

Abstract: New business opportunities taken affect growth and profits, but so do those that were lost. How both kinds of choices are made has been little studied, so field data were used to develop theory. Historical case research and counterfactual methods were used on 20 years of data from DuPont’s archives, newspaper articles, and historical studies. Choices of growth possibilities taken vs. lost were influenced by three heuristics: risk of action vs. inaction, extent of links between current and future businesses, and brief vs. long time horizon. When there were significant deviations between the preferences of powerful individuals and new business possibilities being considered, the former exercised their power to influence choices. These heuristics and occasional power influences resulted in opportunities being taken and lost.

Title: Professional-User Innovation: A Process Model


  • Jennifer Woolley, Santa Clara University
  • Tammy Madsen, Santa Clara University

Abstract: Work on innovation and entrepreneurship highlights the influence of end-user innovators in the creation of new firms and industries. However, less is known about other types of user innovators, such as professional-user innovators. Yet, in an emerging technological field, professional-user innovators operating in incumbent firms often drive industry and technological development. We draw on the extant work on innovation, interorganizational relationships, and organizational governance to develop a process model of professional-user innovation. The model specifies the conditions underlying a firm’s decision to act on a professional user innovation and explores how a firm’s resource and experience stocks affect its governance mode choice (hierarchy, partnership, etc.) for developing the innovation. We conclude with implications for work on industry and technological development.

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