Achieving and Sustaining New Knowledge Development in High-Expectation Start-ups

2010 ◽  
Vol 24 (1) ◽  
pp. 47-53
Author(s):  
Diego Matricano
Keyword(s):  
Competitive Advantage ◽  
Early Stage ◽  
High Growth ◽  
Knowledge Development ◽  
High Expectation ◽  
Knowledge Based ◽  
Start Up ◽  
New Knowledge ◽  
Start Ups

In markets characterized by strong competition, new knowledge and new knowledge development are generally recognized as the key means for an enterprise to gain competitive advantage. This knowledge-based competitive advantage is critical for all commercial ventures, but is especially so for high-expectation start-ups (technology-based ventures anticipating high growth rates). Even though the organizational processes of a start-up are still under development, the success of new knowledge development is affected by three critical factors – the structure of the enterprise, the organizational technology and the knowledge promoters. An analysis of these factors suggests that the role of the knowledge promoter is the key determinant of knowledge development success in the case of early-stage high-expectation start-ups.

When startups exit: comparing strategies in Europe and the USA

2018 ◽  
Vol 39 (3) ◽  
pp. 26-33 ◽  
Author(s):  
Alessia Pisoni ◽  
Alberto Onetti
Keyword(s):  
Early Stage ◽  
High Growth ◽  
High Tech ◽  
Venture Capitalists ◽  
Content Type ◽  
Early Exit ◽  
Start Up ◽  
The Usa ◽  
Local Companies ◽  
Start Ups

Purpose The purpose of this paper is to present an overview of trends toward start-up exits. Exits represent the “end phase” of the start-up process, at least for the founders and the early investors. For high-growth venture-capital-backed companies, exits are often considered the ultimate goal of building a profitable venture. These ventures are intended from the beginning to harvest the financial value created by the business at some point in the future, and return capital to early investors. Design/methodology/approach The authors tracked 5,744 merger and acquisition transactions that have occurred between European and US tech start-ups since 2012. Data are drawn from CrunchBase, the most comprehensive database of high-tech companies and investors with information on the companies and investors around the world. The authors then compared the trends of acquisitions between European and US companies. Findings Results show that US companies are far more inclined to make acquisitions than European ones. Acquirers of start-ups, both from Europe and the US, prefer to buy local companies. However, recently, US companies have started to show more interest in European start-ups. Thus, signaling that the European start-up ecosystem is growing and becoming more attractive for US buyers. Furthermore, results show that start-up exits typically happen within a few years after a company’s establishment. Research limitations/implications The research does not take into consideration the price of the transaction, or the amount of capital invested by venture capitalists in the high-tech start-ups that have been acquired. Further research should address this specific problem by helping European start-ups understand how to plan the exit phase within few years from establishment. Practical implications The results have important implications both for entrepreneurs/managers and policymakers. Early exit appears to be a global trend among start-ups. This suggests that the exit phase should be properly planned to happen in the very early stage of the start-up process. On the other hand, the research also shows that there is still a gap to be filled in the European start-up ecosystems’ ability to produce exits and create new large innovative companies (the so-called “unicorns”). Originality/value To date, there has been a little research about exits for young high-tech ventures. This paper will attempt to shed new light on this so far under-explored issue by specifically analyzing exits as financial strategy for investors and entrepreneurs.

scholarly journals Understanding the accelerator from resources-based perspective

2018 ◽  
Vol 12 (3) ◽  
pp. 258-278 ◽  
Author(s):  
Chul Hyun Uhm ◽  
Chang Soo Sung ◽  
Joo Yeon Park
Keyword(s):  
Early Stage ◽  
Point Of View ◽  
Success Rates ◽  
Access To Resources ◽  
Content Type ◽  
Study Approach ◽  
Start Up ◽  
The Usa ◽  
Start Ups

Purpose This study aims to explore Accelerators and their practices in sustaining start-ups within their innovative programs for these companies based on the resource-based perspective. Moreover, with an ever-increasing demand for Accelerators amongst start-up companies, this study also demonstrates the importance of Accelerators, as it pertains to new venture creation. Design/methodology/approach This research uses an exploratory case study approach to examine a comparative view of leading Accelerator companies in the USA and Korea based on resource support. Findings The results of this study show that there are a number of differences between Accelerators of the two countries in terms of the resources they support for early-stage start-ups. The findings also show some similarities. However, in Korea, the Accelerator landscape is limited, where mentorship, resources and investments are not readily accessible, resulting in low success rates for Korean start-up companies. These limitations have had a negative trickle-down effect when providing entrepreneurs with strong access to resources and investors, which highly affects the success rates of early-stage start-ups. Practical implications In terms of the resource-based theory, this study contributes to the growth of early start-ups by emphasizing the role of the accelerator and suggesting the extent and impact that entrepreneurs have access to resources and investors. Originality/value With significant growth in start-ups around the world, the necessity for start-up funding and mentorship has increased drastically. Start-up companies need various types of assets, systems, knowledge and information to achieve their goals. In Accelerators, start-ups receive all the aforementioned resources while also improving their entrepreneurial skills. Start-up companies have many options in seeking investors who support both tangible and intangible resources to boost growth. While there is a wealth of information on traditional funding methods, there are few studies that shed light on the role of Accelerators from the resource-based point of view.

Understanding Role of Market-orientated IT Competence and Knowledge Sharing Mechanism in Gaining Competitive Advantage

2019 ◽  
Vol 21 (2) ◽  
pp. 418-435
Author(s):  
Alok Kumar Singh ◽  
Jyoti Verma ◽  
Rajeev Verma
Keyword(s):  
Competitive Advantage ◽  
Knowledge Sharing ◽  
Customer Orientation ◽  
Underlying Mechanism ◽  
Sustainable Competitive Advantage ◽  
Business Ecosystem ◽  
Firm Innovativeness ◽  
Start Up ◽  
Start Ups

Contemporary research on start-up firms primarily focuses on business ecosystem and assessing its contribution into the mainstream business economies. Research featuring investments in information technology (IT) and market-oriented IT (MOIT) competence to facilitate the flow of firm innovativeness (FI) across multisectoral start-ups is yet to be identified. Further, the role of innovation orientation (IO)-enabled firm innovativeness (FI) on sustainable competitive advantage (SCA) needs further exploration in the light of customer orientation (CO) of the enterprise. It is partially because the underlying mechanism remains largely unexplored in the context of rippling start-ups. In the current research, we conceptualized and tested a model that examines the role of MOIT competence and knowledge sharing mechanism (KSM) on FI and SCA, in the light of Resource Advantage (R-A) theory and SD logic (SDL) framework. This model also proposes and establishes IO as an important enabler for firm’s competitive advantage. Using a sample of 267 start-up ventures registered under Start-up India Programme (DIPP, Ministry of Commerce and Industry, Government of India), we tested above-mentioned relationship using SPSS AMOS 22. Results show that MOIT competence is an important enabler for FI and in turn SCA of the firm. CO strongly moderates the role of IO on firm’s competitive advantage.

scholarly journals Institutional Change and Early-Stage Start-Up Selection: Evidence from Applicants to Venture Accelerators

2020 ◽  
Author(s):  
Valentina A. Assenova
Keyword(s):  
Developing Economies ◽  
Early Stage ◽  
High Growth ◽  
New Venture ◽  
Institutional Changes ◽  
New Firms ◽  
Institutional Reforms ◽  
Start Up ◽  
Average Probability ◽  
Start Ups

Existing research at the nexus of institutional theory and entrepreneurship suggests that lowering institutional barriers to forming, growing, and exiting new firms can affect the types of start-ups that entrepreneurs found in a region. These institutional changes could influence entrepreneurs’ perceptions of the value of partnering with venture accelerators and potentially improve these sponsors’ capacity to select high-growth start-ups to fund and develop. This study evaluates these ideas by developing and testing three hypotheses. First, institutional reforms improve entrepreneurs’ perceived value of venture accelerators for resources that affect new venture development. Second, they reduce the average probability of being selected for new applicants, due to a surge in the number and heterogeneity of new applicants within accelerators’ local ecosystems. Third, institutional reforms increase the quality of selected cohorts for accelerator managers due to increases in the average quality and human capital of new applicants. To evaluate these hypotheses, I analyze data from 13,770 applicants to venture accelerators over multiple application cycles between 2016 and 2018 in 170 countries. I use a differences-in-differences design to estimate the effects of institutional changes on start-up selection after regulatory reforms that reduced the time and procedures to start new firms, obtain credit, and resolve bankruptcy for entrepreneurs. The findings have valuable implications for how governments, especially those in emerging and developing economies, can support high-growth entrepreneurship.

Founding angels as early stage investment model to foster biotechnology start-ups

1969 ◽  
Vol 17 (2) ◽  
Author(s):  
Gunter Festel
Keyword(s):  
North America ◽  
Business Model ◽  
Early Stage ◽  
Academic Research ◽  
Investment Strategy ◽  
Investment Model ◽  
Start Up ◽  
Start Ups ◽  
Innovation Processes

As a rule, in biotechnology and other technologies, a gap exists between innovations coming from academic research and the commercialisation of the results, which is a serious barrier for innovation processes. This article investigates the role of founding angels as an early stage investment model, which has been applied in North America for a number of years and is now also being established in Europe. Focus is the commercialisation of pre-seed and seed stage technologies developed at universities and research institutions. Founding angels close the gap by actively founding and building up biotechnology start-up companies, together with scientists, typically before the engagement of business angels and venture capital. For providing business expertise and day-to-day operational support they are not compensated monetarily, but with an equity share of the new company. This article analyses the approach and investment strategy of founding angels and contains case studies from Germany and Switzerland showing how this business model is realised.

Experimental Labs for Start-ups: The Role of the ‘Venture-Sitter’

2010 ◽  
Vol 24 (5) ◽  
pp. 318-322 ◽  
Author(s):  
Diego Matricano ◽  
Alberto Pietrobon
Keyword(s):  
Potential Usefulness ◽  
High Expectation ◽  
Successful Development ◽  
Start Up ◽  
Start Ups

Curley and Formica's (2008, 2010) studies of high-expectation entrepreneurship focus on the role of ‘experimental laboratories’ in promoting the start-up and successful development of high-expectation firms. Although it is not difficult to understand the potential usefulness of these experimental labs – business simulators in which skilled partners test high-expectation business ideas proposed by prospective entrepreneurs – some aspects of their implementation need to be clarified. There is a need for such a facility because the demand for knowledge from high-expectation entrepreneurs is currently not being met by the supply of available knowledge from experts. The ‘experimental lab’ process is regarded as coming to an end when the idea has been thoroughly tested and is ready for launch into the marketplace. However, some uncertainties remain about the nature of the proposed process, especially with regard to the precise means adopted to achieve the final aim. This article extends the authors' previous commentaries (Matricano, 2009; Pietrobon, 2009) on Curley and Formica's proposal. It considers the key role of the ‘venture-sitter’ in an experimental business laboratory. Venture-sitters are experts who, mirroring the approach of the baby-sitter, aim to obtain the trust of other experts (the ‘relatives’) and aspiring entrepreneurs (the ‘parents’) while looking after the new entrepreneurial idea (the ‘child’) to ensure that it is nurtured and developed in the best way possible.

scholarly journals Innovation Capabilities and the Performance of Start-Ups in Korea: The Role of Government Support Policies

2021 ◽  
Vol 13 (11) ◽  
pp. 6009
Author(s):  
Se-Kyoung Choi ◽  
Sangyun Han ◽  
Kyu-Tae Kwak
Keyword(s):  
Firm Performance ◽  
Financial Support ◽  
Political Support ◽  
Sustainable Growth ◽  
Government Support ◽  
Role Of Government ◽  
Positive Effects ◽  
Start Up ◽  
Start Ups

What kind of capacity is needed to improve the performance of start-ups? How effective are government support policies in improving start-up performance? Start-ups are critical firm group for ensuring the prospective and sustainable growth of an economy, and thus many countries’ governments have established support policies and they are likely to engage more widely in forward-looking political support activities to ensure further growth and expansion. In this paper, the effect of innovation capabilities and government support policies on start-up performance is examined. We used an unbalanced panel data analysis with a random effect generalized least squares. We investigated the effect of government support policies on 4368 Korean start-ups. The findings indicated that technology and knowledge capabilities had positive effects on the sales performance of start-ups, and government financial support positively affected the relationship between knowledge capability and firm performance. However, when government financial support increased, marketing capability was negatively associated with firm performance. These results demonstrate the significant role of government financial support, including its crowding in but also its crowding out effect. Practical implications: To be more effective, governments should employ innovation-driven entrepreneurship policy approaches to support start-ups. To improve their performance, start-ups need to increase their technology and knowledge capabilities. This study extends recent efforts to understand more fully the effect of government support policies on start-ups differing in their technology, knowledge, and marketing capabilities.

Start-Ups and Spin-Offs in Biotechnology Sector in Poland

Biotechnology ◽  
2019 ◽  
pp. 1293-1321
Author(s):  
Anna Białek-Jaworska ◽  
Renata Gabryelczyk
Keyword(s):  
Business Models ◽  
Stock Exchange ◽  
Early Stage ◽  
Global Strategy ◽  
Third Party ◽  
Start Up ◽  
Warsaw Stock Exchange ◽  
Business Line ◽  
Definition Of ◽  
Start Ups

This chapter concerns the subject of research-developmental activity of biotech spin-offs in Poland with particular reference to their strategy, determinants of their development and determinants of their financial standing. In the chapter, the authors analyse the determinants of biotech spin-offs and start-ups development in Poland in the light of the research commercialisation cooperation on the universities-business line. The literature overview contains the definition of a process for the commercialisation of the results of research and development (R&D) activity and components of companies' business models. The chapter defines key activities in the development of business models in the context of the commercialisation process and the life cycle of the company, especially at the start up and early stage. Quality-quantitative analysis includes the business models of seven biotechnology spin-offs traded on the alternative market of the Warsaw Stock Exchange, especially the structure of their intellectual capital, R&D expenses in relation to received subsides and grants, third-party shares in start up equity, and the ability to realise the “Go Global” strategy.

The Role of ICTs and the Management of Multinational Intellectual Capital

2011 ◽  
pp. 2457-2472 ◽  
Author(s):  
Mirghani S. Mohamed ◽  
Mona A. Mohamed
Keyword(s):  
Competitive Advantage ◽  
Information And Communication Technologies ◽  
Intellectual Capital ◽  
Communication Technologies ◽  
Supply Network ◽  
Global Knowledge ◽  
Knowledge Based ◽  
Information And Communication ◽  
Governance Strategy

This chapter provides a systematic multidisciplinary framework that defines the role of technology in leveraging IC across borders and between headquarters and subsidiaries. In reaching this conclusion, this chapter investigates the strategic importance of Information and Communication Technologies (ICTs) in the management of Intellectual Capital (IC) within a Multinational Company (MNC) ecosystem. The chapter addresses the transubstantiation of MNC into boundaryless Global Knowledge-Based Organization (GKB-MNC) which ultimately propagates into Learning MNC (LMNC). The latter is a suggested MNC category that sustains competitive advantage through systemic adoption of “Knowledge Iterative Supply Network (KISN)” model proposed by the authors. The chapter suggests a new multinational ICT/IC governance strategy that handles the emerging complexities associated with modern intangible resource synthesis.

scholarly journals The early growth of start-ups: innovation matters. Evidence from Italy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raffaele Fiorentino ◽  
Sergio Longobardi ◽  
Alessandro Scaletti
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Firm Growth ◽  
Ad Hoc ◽  
Early Stage ◽  
New Ventures ◽  
Objective Measure ◽  
Content Type ◽  
Start Up ◽  
Start Ups

PurposeDespite the relevance of innovation in entrepreneurship literature, empirical research on the innovation-performance relationship in start-ups is underdeveloped and shows controversial results. To bridge this gap, the aim of this paper is to investigate the role of innovativeness on new venture performance in the early stage of the life cycle.Design/methodology/approachRegression modelling and propensity score matching are used to reveal systematic differences in growth between innovative start-ups (ISUPs) and non-innovative start-ups. We use an ad hoc dataset obtained through merging the financial database AIDA with data from administrative sources (Italian Chambers of Commerce and the Italian Ministry for Economic Development).FindingsThe results show that differences in growth can be explained by the different levels of innovativeness in new ventures. Moreover, unlike in prior studies, the innovation inputs matter more than innovation outputs. Indeed, the results support the idea that innovation policies can contribute to maximising the potential of start-ups.Practical implicationsThe findings provide suggestions for policy makers and entrepreneurs to help firms configure ex ante appropriate actions to support the growth of new ventures in the start-up stage.Originality/valueThis study is the first to use the new objective measure of start-up innovation, available from the Italian LD 221 register. Second, different types of innovation are investigated as antecedents of firm growth. Third, we employ propensity score matching, which favours revealing systematic differences in growth between ISUPs and non-innovative start-ups. Fourth, the results of our study are the first to offer evidence on the effectiveness of the new Italian sustaining ISUPs policy.

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