Session 162

New Venture Strategy & Innovation

Track K

Date: Monday, October 8, 2012


Time: 16:30 – 17:45


Room: Club D

Session Chair:

  • Anindya Ghosh, Indian School of Business

Title: Exploring the Diminishing Returns of Innovation Breadth on Small Firm Performance: Mediating and Moderating Mechanisms


  • Sarel Gronum, University of Queensland
  • Martie-Louise Verreynne, University of Queensland

Abstract: Innovation is risky business for resource strapped small firms. Yet, researchers have rarely considered how small firms can innovate across multiple domains. While innovation breadth seems to matter to large firms, liabilities of smallness may hamper its implementation. A better understanding of how wide small firms should cast their innovation net may hold much benefit. This quantitative study uses a large scale longitudinal dataset to shed light on the linearity, directionality, temporality and contextual nature of this relationship. It finds that the innovation breadth – performance relationship is a mutually beneficial, reciprocal relationship which exhibits an inverted U-shape. However, it is context dependent. Firms in uncertain environments innovate across a smaller range of areas. Further, age and size mediates this relationship.

Title: Strategy Formation by Russian Entrepreneurs: Hoping for the Best…Turned Out Like It Always Does


  • David Lingelbach, University of Baltimore

Abstract: How do expert entrepreneurs in transition economies create strategy? This longitudinal case study of a Russian oligarch led to propositions exploring that question. Resource modesty, rather than resource scarcity, shapes the opportunity set available to these entrepreneurs at inception, causing creative friction that leads to ingenious solutions. Early uncertainty hedging, rather than risk management, allows the new firm to grow and diversify. Aloof partnering with both public and private stakeholders avoids lock in, while introducing new capabilities. Waiting for the main chance builds on these processes to create an established entrepreneurial enterprise, based on an objective analysis of "what is really going on here?" Considered together, these propositions suggest how entrepreneurs facing institutional change overcome structural constraints to create sustainable value.

Title: Understanding the Micro-Orchestration of Resources as a Process leading to Dynamic Capabilities


  • Bart Clarysse, ETH Zurich
  • Robin De Cock, Ghent University
  • Johan Bruneel, KU Leuven

Abstract: The dynamic capability view has become dominant in explaining how companies can create a competitive advantage. The resource management literature has introduced the role of managers in the process of building and changing resources which lead to capabilities. However, these literature streams only consider the role of the senior management in the decision process of the firm. The capability literature has been criticized as lacking theoretical logics which explain the micro-processes of capability development. Using an inductive case study, we extend the dynamic capability perspective by describing the micro-processes of capability development and embedding them in the attention based view, the theory on cognitive dissonance and the slack literature.

All Sessions in Track K...

Sun: 08:00 – 09:15
Session 126: Entrepreneurship & Stakeholders - The Future Research Agenda
Sun: 09:30 – 10:45
Session 127: Teaching Strategic Entrepreneurship
Sun: 11:15 – 12:30
Session 128: Poverty, Informal Firms & Strategic Entrepreneurship
Sun: 15:15 – 16:30
Session 157: Financing Entrepreneurial Ventures
Session 161: Entrepreneurial Growth
Mon: 08:00 – 09:15
Session 158: Corporate Venture Capital
Session 175: Austrian Economics & Creative Destruction
Mon: 09:30 – 10:45
Session 178: Institutional Theory & New Ventures
Session 180: Pushing the Bounds of Agency Theory
Mon: 13:30 – 14:45
Session 159: Exploration, Exploitation, and Ambidexterity
Session 169: Spinoffs, Spinouts, and Labor Mobility
Mon: 16:30 – 17:45
Session 162: New Venture Strategy & Innovation
Session 163: Cognitive Perspectives
Tue: 08:00 – 09:15
Session 164: IPOs
Session 170: Emerging Markets
Tue: 11:00 – 12:15
Session 160: Corporate Venturing and Intrapreneurship
Session 179: Social Networks within and across Firms
Tue: 14:15 – 15:30
Session 166: Institutional Aspects of Entrepreneurship
Session 167: Firm Boundaries
Tue: 15:45 – 17:00
Session 174: Social Networks & Entrepreneurship
Session 176: Value Capture & Appropriability
Tue: 17:30 – 18:45
Session 168: Uncertainty, Ambiguity, and Sense-Making
Session 173: New Venture Creation

Strategic Management Society