Session 167

Firm Boundaries

Track K

Date: Tuesday, October 9, 2012


Time: 14:15 – 15:30


Room: Club D

Session Chair:

  • Daniela Baglieri, University of Messina

Title: Entrepreneurial Integration and the Boundary of the Firm: Identifying and Evaluating Strategies for Entrepreneurship


  • Thomas Craig, DeSales University

Abstract: In this paper I propose that a firm’s entrepreneurial boundary, determined by the strategic decision to pursue certain types of opportunities and outsource the pursuit of others, is an important yet underexplored organizational phenomenon. Entrepreneurship is presented as a multi-stage production process of complementary venturing activities, involving distinct value-adding modes of action that move new ideas and technologies from invention through commercialization to ultimate dispersion throughout the market. Drawing on the entrepreneurship, strategic entrepreneurship, and organizational economics literatures, I develop a theory of entrepreneurial integration and argue that it provides a logical basis for identifying the entrepreneurial boundary and defining a firm’s strategy for entrepreneurship. Performance implications of different strategies and research propositions are discussed.

Title: Examining Firm Scope Decisions: Three Reasons Why Entrepreneurial Firms Switch Industries


  • Elizabeth Reusch, Marshall University

Abstract: In contrast to previous diversification studies, this study considers entrepreneurial firms might switch industries rather than diversification. Theoretical reasons are proposed suggesting why entrepreneurial firms are significantly different from diversification. By demonstrating there are significant theoretical differences for this group of firms, this study hopes to bring this phenomenon greater recognition within organizational research and open the possibilities for further research.

Title: Thanks, but no thanks: Examining Entrepreneurial Optimism, External Funding, and Joint Venture Partnerships


  • R. Scott Livengood, Ohio State University

Abstract: Entrepreneurial optimism has been explored in the context of new venture performance, with little focus on other behavioral and decision-making activities. Using a proprietary dataset of entrepreneurs receiving a government technology award, we explore how entrepreneurial optimism can impact the decision to accept external funding and to enter into joint ventures. Although prior research suggests optimism about the success of a venture will motivate entrepreneurs to seek outside funding and to enter in to joint venture partnerships, we explore how high levels of optimism would instead motivate entrepreneurs to not receive such outside help. Results suggest optimism has a non-linear relationship with accepting outside help, which leads founders to receive less external funding and instead choose to “go it alone.”

Title: When Do Alliance Partners Become Attractive Targets? Mobilizing Patents and Relational Resources


  • Daniela Baglieri, University of Messina
  • Fiorenza Belussi, University of Padua
  • Luigi Orsi, University of Milan

Abstract: The core idea of this paper is that prior alliances can be used to identify attractive acquisition targets. It differs from prior work that models acquisition and alliances as essentially options and suggests that both mechanisms have to be considered related and, thus, worthy of being studied collectively. Accordingly, we ask: Under what conditions do alliance partners become attractive acquisition targets? To test our hypotheses, we selected a sample of 316 biotech firms, involved in 2,359 licensing agreements and 77 acquisitions, spanning a period of 15 years. We found that previous alliances between the target and the acquiring firm is not significant, while targeting firms with a large patent portfolio, and firms possessing relational resources, proxied by the centrality within their alliance partners network is relevant.

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