Session 176

Value Capture & Appropriability

Track K

Date: Tuesday, October 9, 2012


Time: 15:45 – 17:00


Room: Club D

Session Chair:

  • Niron Hashai, Hebrew University of Jerusalem

Title: Business Model Innovation and Imitation by Competitors


  • Yuliya Snihur, Toulouse Business School
  • Christoph Zott, IESE Business School

Abstract: In this paper we explore what mechanisms are available for entrepreneurs to alleviate the likelihood of their new business models being imitated, an important challenge for any innovation. We first define business model innovation (BMI) and then apply insights anchored theoretically in the resource-based view to suggest several barriers to BMI imitation. We thus maintain that strategic design of content, structure, and governance of the new business model can limit the likelihood of its imitation by competitors through leveraging complexity, path-dependence, and incompatibility of BMI with the existing business models of competitors.

Title: Compete or Cooperate? The role of Industry Structure in Start-up Commercialization Strategies


  • Niron Hashai, Hebrew University of Jerusalem
  • Sarit Markovich, Northwestern University

Abstract: This study demonstrates the impact of industry structure on startups' decision whether to directly compete in the market or to cooperate with industry incumbents in product distribution. We hypothesize and empirically show that startups are more likely to compete in moderately concentrated markets than in fragmented or highly concentrated ones. We further show that: 1) a tight appropriability regime encourages competition in low to medium levels of industry concentration, but encourages cooperation at medium to high levels of concentration; 2) the effect of complementary assets on the decision to compete increases with industry concentration; 3) startups producing tailor made products are more likely to compete in concentrated industries; and 4) VC backed startups are less likely to compete in concentrated industries.

Title: Financing Entrepreneurial Firms Under Weak Appropriability Regime: Explorative Study of Financing Open Source Entrepreneurial Firms


  • Ali Mohammadi, Royal Institute of Technology
  • Cristina Rossi Lamastra, Polytechnic University of Milan
  • Massimo Colombo, Polytechnic University of Milan
  • Giovanni Liotta, Ecole Polytechnique Federale de Lausanne

Abstract: This paper empirically investigates that how the financing patterns of high-tech entrepreneurial firm vary depending on the appropriability regime. Entrepreneurial firms are financially constrained and encounter problems in attracting external financing. It is expected that difficulties in attracting external financing are more severe for high-tech entrepreneurial firms, which operate under a weak appropriability regime. The research on financing of high tech entrepreneurial firms has left the issue of how start-ups finance their innovation depending on appropriability regime rather under-remarked .This paper compares VC financing patterns of open source and proprietary entrepreneurial firms. Result shows that OSS entrepreneurial firms are significantly different than proprietary ones regarding age at the first investment. But we cannot claim that there are differences in case of syndication and syndication size.

Title: Knowledge Creation and Appropriation within Incumbent Firms and Employee Entrepreneurship


  • Alfonso Gambardella, Bocconi University
  • Martin Ganco, University of Wisconsin-Madison
  • Florence Honore, Iowa State University

Abstract: Existing literature shows that knowledge acquired by employees within incumbent firms is an important driver of entrepreneurship. We ask the question of when the knowledge protected by patents affects employee’s entrepreneurial decision. Using a dataset based on the European Patent Survey, we find that the likelihood of entrepreneurship increases with the perceived value of inventor’s patents, and, decreases with the compensation she received for the patents. We further find that the relationship between the patent value and the entrepreneurship decision weakens when the patent is licensed out or when the patent is in a core technological domain of the firm. We show how entrepreneurship decisions depend on the unique characteristics of the patented knowledge with implications for the diffusion and exploitation of underutilized knowledge.

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

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