Firm valuation effects of high-tech M&A: A comparison of new ventures and established firms

2006 ◽  
Vol 17 (1) ◽  
pp. 85-96 ◽  
Author(s):  
Roberto Ragozzino
Keyword(s):  
New Ventures ◽  
Firm Valuation ◽  
High Tech ◽  
Valuation Effects ◽  
Established Firms

Innovation for a (high-tech) nation

2018 ◽  
Vol 34 (12) ◽  
pp. 12-14
Keyword(s):  
Competitive Advantage ◽  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
New Ventures ◽  
Innovation Strategy ◽  
High Tech ◽  
Content Type ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings High-tech new ventures are typically beset by significant challenges in their marketplaces. Using effectuation, innovation strategy and the moderating force of opportunity shaping, they are able to gain competitive advantage. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals The Role of Accelerator Designs in Mitigating Bounded Rationality in New Ventures

2018 ◽  
Vol 64 (4) ◽  
pp. 810-854 ◽  
Author(s):  
Susan L. Cohen ◽  
Christopher B. Bingham ◽  
Benjamin L. Hallen
Keyword(s):  
Bounded Rationality ◽  
New Ventures ◽  
Multiple Case Study ◽  
New Venture ◽  
External Information ◽  
Start Up ◽  
Multiple Case ◽  
Established Firms

Using a nested multiple-case study of participating ventures, directors, and mentors of eight of the original U.S. accelerators, we explore how accelerators’ program designs influence new ventures’ ability to access, interpret, and process the external information needed to survive and grow. Through our inductive process, we illuminate the bounded-rationality challenges that may plague all ventures and entrepreneurs—not just those in accelerators—and identify the particular organizational designs that accelerators use to help address these challenges, which left unabated can result in suboptimal performance or even venture failure. Our analysis revealed three key design choices made by accelerators—(1) whether to space out or concentrate consultations with mentors and customers, (2) whether to foster privacy or transparency between peer ventures participating in the same program, and (3) whether to tailor or standardize the program for each venture—and suggests a particular set of choices is associated with improved venture development. Collectively, our findings provide evidence that bounded rationality challenges new ventures differently than it does established firms. We find that entrepreneurs appear to systematically satisfice prematurely across many decisions and thus broadly benefit from increasing the amount of external information searched, often by reigniting search for problems that they already view as solved. Our study also contributes to research on organizational sponsors by revealing practices that help or hinder new venture development and to emerging research on the lean start-up methodology by suggesting that startups benefit from engaging in deep consultative learning prior to experimentation.

The Survival Benefits of Service Intensity for New Manufacturing Ventures: A Resource-Advantage Theory Perspective

2019 ◽  
Vol 22 (4) ◽  
pp. 352-370 ◽  
Author(s):  
Pankaj C. Patel ◽  
John A. Pearce ◽  
Maria J. Guedes
Keyword(s):  
Empirical Study ◽  
Labor Productivity ◽  
New Ventures ◽  
Current Ratio ◽  
Service Intensity ◽  
Self Selection ◽  
Comprehensive Data ◽  
Resource Advantage Theory ◽  
Established Firms ◽  
Resource Advantage

We investigate the association between service intensity and the survival odds of new manufacturing ventures. Although previous research extensively addresses the value of servitization in established firms, this is the first empirical study that asks whether service intensity, defined as the percentage of sales from services, is beneficial or detrimental to new ventures. Drawing on resource-advantage theory, we further ask whether, under increasing service intensity, new ventures with a higher industry-adjusted ratio of tangible to total assets, labor productivity, or current ratio improve survival odds. Based on a comprehensive data on 6,683 new Portuguese manufacturing ventures founded between 2006 and 2010 and followed until 2015 (33,272 venture-year observations), the results show that higher service intensity lowers the odds of survival. For entrepreneurs, we caution against higher service intensity but demonstrate that survival odds can improve under increasing service intensity when the company can achieve a higher industry median–adjusted ratio of tangible to total assets, improved labor productivity, or a stronger current ratio position. The findings are robust after controlling for endogeneity and self-selection into services.

Does holistic cognition frame always promote business model design?

2019 ◽  
Vol 13 (4) ◽  
pp. 840-859 ◽  
Author(s):  
Yong Wu ◽  
Linqian Zhang ◽  
Zelong Wei ◽  
Mingjun Hou
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
New Ventures ◽  
Model Design ◽  
Content Type ◽  
Business Model Design ◽  
Established Firms ◽  
The Relationship ◽  
Positive Effect ◽  
Holistic Cognition

Purpose This paper aims to explore the effects of holistic cognition frame on novelty-centered business model design and efficiency-centered business model design. Moreover, the authors consider how these effects differ in new ventures vs established firms. Design/methodology/approach The authors use survey data to testify the hypotheses based on a database of 204 firms in China. Then, regression analysis is used to examine the relationship between holistic cognition frame and business model design. They also explore the contingency effects of new ventures and established firms on the relationships. Findings The authors find that the holistic cognition frame has a positive effect on efficiency-centered business model design, whereas it has an inverse U-shaped effect on novelty-centered business model design. Furthermore, they find that the effects of holistic cognition frame on efficiency-centered business model design and novelty-centered business model design are different in established firms and new ventures. Originality/value This work offers new insights into the effects of holistic cognition frame on business model design and provides useful suggestions for firms to promote business model design.

Fostering product innovation: Differences between new ventures and established firms

Technovation ◽  
2015 ◽  
Vol 41-42 ◽  
pp. 25-37 ◽  
Author(s):  
Raquel Antolín-López ◽  
José Céspedes-Lorente ◽  
Nieves García-de-Frutos ◽  
Javier Martínez-del-Río ◽  
Miguel Pérez-Valls
Keyword(s):  
Product Innovation ◽  
New Ventures ◽  
Established Firms

Entrepreneurial Team Composition Characteristics and New Venture Performance: A Meta–Analysis

2017 ◽  
Vol 41 (5) ◽  
pp. 743-771 ◽  
Author(s):  
Linlin Jin ◽  
Kristen Madison ◽  
Nils D. Kraiczy ◽  
Franz W. Kellermanns ◽  
T. Russell Crook ◽  
...  
Keyword(s):  
Meta Analysis ◽  
New Ventures ◽  
Top Management Teams ◽  
New Venture ◽  
Future Research ◽  
Team Composition ◽  
Venture Performance ◽  
Entrepreneurial Team ◽  
Established Firms ◽  
New Venture Performance

Upper echelon theory highlights the importance of top management teams in large and established firms; however, effects are not always clear outside of this context. Due to the unique nature of new ventures, the composition of entrepreneurial teams and its effects on performance is worthy of investigation. Accordingly, we meta–analyze the effect of three characteristics of entrepreneurial team composition (i.e., aggregated, heterogeneity, team size) on new venture performance. Our meta–analysis, which includes 55 empirical samples and 8,892 observations, finds significant and unique effects of entrepreneurial team characteristics on new ventures. Based on our findings, we derive avenues for future research.

Cooperative Strategies in Non-High-Tech New Ventures: An Exploratory Study

1997 ◽  
Vol 21 (2) ◽  
pp. 37-54 ◽  
Author(s):  
Candida G. Brush ◽  
Radha Chaganti
Keyword(s):  
Qualitative Methods ◽  
Exploratory Study ◽  
Resource Constraints ◽  
New Ventures ◽  
Future Research ◽  
High Tech ◽  
Research Directions ◽  
Cooperative Strategies ◽  
Future Research Directions ◽  
Quantitative And Qualitative Methods

Cooperative strategies are of growing interest in entrepreneurship. Current research focuses on high-tech companies, but less is known about cooperative activities in non-high-tech businesses. Differences in distinct competencies based on technology suggest that lessons from high-tech companies may not fully apply to non-high-tech companies. This research explores the nature, extent, and approaches to cooperative strategies in non-high-tech new ventures, utilizing quantitative and qualitative methods. Survey data is analyzed to assess usage and characteristics of cooperative strategies. Results show that few companies used cooperative strategies and these were not central to core operations. Field interviews comparing three non-high-tech and three high-tech new ventures examine motives and approaches to cooperative strategies. For all six cases, resource constraints motivated usage of cooperative strategies and all had cooperative arrangements with competitors. However, goals and approaches to cooperative strategies differed between non-high-tech and high-tech businesses. Findings suggest future research directions.

Behavioral patterns in born-again global firms

2014 ◽  
Vol 22 (4) ◽  
pp. 418-441 ◽  
Author(s):  
Patrick Schueffel ◽  
Rico Baldegger ◽  
Wolfgang Amann
Keyword(s):  
International Entrepreneurship ◽  
New Ventures ◽  
Case Study Research ◽  
Content Type ◽  
Study Research ◽  
Starting Point ◽  
Study Results ◽  
Established Firms ◽  
Born Again

Purpose – The purpose of this paper is to identify factors that influence so-called born-again global firms’ internationalization behavior. Specifically, this article explores the following questions: why do mature, domestically focused firms suddenly turn into born-again global firms, how do they do so and what elements are needed for born-again global firms to be sustainable. Design/methodology/approach – Using an established international entrepreneurship model as a starting point, we extract relevant factors for a conceptual framework on born-again global firms’ internationalization activities. Case study research among a cross-sectional sample of born-again global firms is being applied for that purpose. Findings – Driven by the insufficient size of their domestic market, born-again global firms typically embark on internationalization after a generational change at the chief executive officer level. Throughout their internationalization journey, they flexibly adapt toward new needs of their foreign environments. Due to their idiosyncratic characteristics, born-again global firms deserve consideration as a separate group of research objects in the field of international entrepreneurship. Research limitations/implications – The investigated sample of case study firms was drawn across a variety of industries. As such, industry-specific conditions could not be observed and the findings from case study research run the risks of being generalized too broadly. In addition, the accuracy of the case study results may suffer from a certain degree of hindsight bias as the internationalization event took place in the past. Practical implications – Openness to learning from other markets and the flexibility to modify products according to client needs strengthen born-again global firms’ competitiveness. To endure, born-again global firms have to be innovative in adapting to changes, which makes it easier for them to launch their products in new markets. Originality/value – To date, international entrepreneurship has focused on the activities of small and newly established firms, largely neglecting the behavior of somewhat larger and established firms in traditional sectors. This study shows that established companies can exhibit the same innovative, proactive and risk-seeking behavior across borders as new ventures do. Despite their strongly rooted structures, strategies and cultures, born-again globals can flexibly adapt to new environments.

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