In order to provide a robust platform for the thought leadership of its affiliated scholars in entrepreneurship and innovation, the Batten Institute has created the following Research Paper Series. This series features working papers and published articles that have been authored, in whole or in part, by faculty members, their affiliates, and Batten Fellows in any of the Institute's primary focus areas. The broad intent for this series is to serve as a comprehensive and authoritative resource for scholarship excellence in entrepreneurship and innovation. (Names in bold indicate a Darden/UVa faculty member or a Batten Fellow.)
This paper examines variations in the adoption of new technology by firms operating in a network-based industry: telecommunications. These variations are explained as a function of three network effects: the first is the conversion effect, driven by operations-related increasing returns to scale; the second is the consumption effect, driven by demand-side increasing returns to scale; the third is an imitative effect. We expect the conversion effect to be felt more strongly during earlier phases of a technology's evolution, while a strong consumption effect is felt throughout. The imitative effect is also expected to be felt throughout. These hypotheses are examined with respect to electronic switching adoption in the local operating sector of the U.S. telecommunications industry. An analysis of the variations in adoption levels of the 40 largest firms over a period lasting from 1973 to 1987 supports our expectations, except for the imitative effect.
In this exploratory study, we examine empirically the effects of environmental jolts on the evolution of the set of relationships that entrepreneurs have with their customers and suppliers (which we call the transaction set). We believe that understanding how turbulence in the environment affects the ability of entrepreneurs to hold on to their existing relationships or to add new relationships is fundamental to understanding the evolution and growth of an organization from a start-up to a stable, wealth-creating enterprise in the long-run.
Using longitudinal data spanning 7 to 10 years from five start-up firms, we investigate three questions on the connection between environmental jolts and changes in the transaction set of the firm. First, do environmental jolts during the early life of the firm induce significant reductions in the set of relationships of a new, small firm? Second, are entrepreneurs able to add new relationships in greater numbers than the exit of old relationships following a jolt? And, third, do start-ups enjoy a "honeymoon" period when environmental jolts do not induce significant reductions in the set of relationships after a jolt?
Our study yielded several findings that may be of interest to entrepreneurs, academics, and incubator managers. First, environmental jolts have a significant impact on the exits of relationships from the transaction set of a new, small firm, but not necessarily on the entry of new relationships into the set. Thus, although liabilities of newness and small size seem to affect the ability of entrepreneurs to hold on to their existing relationships during environmental jolts, these jolts do not seem to affect the entrepreneur's ability to add ties, at least in the very early life of the firm. Second, the level of reduction after environmental jolts seems to be less severe during the early life and greatest during the adolescent period. Further, entries of new relationships decrease with each succeeding jolt.
Four antecedents, it is argued, are necessary precursors for a firm to capture rents from innovation. The antecedents are causal understanding; innovation team proficiency; emergence and mobilization of new competences; and creation of competitive advantages, each of which are conceptually distinct and precisely defined in the paper. These constructs are linked together in a stage model and subsequently operationalized and tested using LISREL. Substantial support is found for the central thesis, that achieving each of the four antecedent processes increases the predicted rents from an innovation project.
Four antecedents, it is argued, are necessary precursors for a firm to capture rents from innovation. The antecedents are causal understanding; innovation team proficiency; emergence and mobilization of new competences; and creation of competitive advantages, each of which are conceptually distinct and precisely defined in the paper. These constructs are linked together in a stage model and subsequently operationalized and tested using LISREL. Substantial support is found for the central thesis, that achieving each of the four antecedent processes increases the predicted rents from an innovation project.
This study examines the relationship between national culture and national preferences for innovation championing strategies for a sample of 1228 individuals in 30 countries. The study finds that the more uncertainty avoiding a society is the more people prefer champions to work through organizational norms, rules and procedures to promote innovation. The more power distant a society is the more people prefer champions to focus on gaining the support of those in authority before other actions are taken on an innovation rather than on building a broad base of support among organization members for new ideas. The more collectivist a society is the more people prefer champions to seek cross-functional support for the innovation effort.
An entrepreneurship game that is based on solid theory has significant potential to inform entrepreneurship research and enhance classroom experiences. However, developing a game that succeeds at both teaching and research is a difficult task This article describes one such attempt, which has achieved initial indications of success on both counts. The article describes the game and its theoretical underpinnings. It discusses the value of the game for teaching and provides an example of its research potential Lessons learned while developing the game are discussed.
The conduct of IT planning processes has been a dominant managerial concern in organizations. Yet, current IT planning research offers little guidance on the types of planning actions and behaviour that are appropriate to organizational contexts. The motivation of this paper is to extend the existing literature by addressing the following major question: How should organizations design IT planning systems to manage the conduct of their IT planning processes? The paper seeks to address this question by (i) identifying key organizational forces that affect the IT planning processes, (ii) articulating some of the key dimensions of IT planning systems and (iii) elaborating upon propositions for linking designs of IT planning systems with organizational context. The concepts and the propositions are expected to provide significant guidance for further research and practice.