Session 178

Institutional Theory & New Ventures

Track K

Date: Monday, October 8, 2012


Time: 09:30 – 10:45


Room: Club D

Session Chair:

  • Florian Ueberbacher, University of St. Gallen

Title: Corruption and Nascent Ventures’ Resource Acquisitions in a Transition Economy


  • Li Tian, Nankai University
  • Jiatao Li, Hong Kong University of Science and Technology

Abstract: Building on the institutional theory and resources dependency theory perspective, this study examines the impact of corruption on nascent ventures’ resource acquisition and its boundary conditions in China’s transition economy. We argue that two dimensions of corruption, pervasiveness and arbitrariness, independently and interactively constrain nascent ventures’ resources acquisition. The relationships between levels of corruption pervasiveness and arbitrariness and resource acquisition are further moderated by ventures’ legal identity and community support to entrepreneurship. An empirical study of 160 nascent ventures in China provides support for the hypotheses.

Title: Institutional Pluralism and New Venture Legitimation Strategies: A Study of Linguistic Identity Choices of Indian Newspapers, 1948-2008


  • Rajiv Krishnan Kozhikode, Simon Fraser University
  • Andreea Kiss, Iowa State University

Abstract: To what extent do new ventures behave strategically in their quest for legitimacy? This study highlights institutional pluralism as a mechanism that influences the extent to which new ventures engage in identity choices that conform or deviate from dominant ideological prescriptions. The study of the language identity choices of newspaper organizations founded in India from 1948 until 2008 confirms that new ventures were less likely to switch their language of publication when their founding identity was in alignment with the linguistic ideology of the incumbent government and when social movements challenged their founding identity. Social movements also weakened the negative effect of founding identity alignment with incumbent government’s linguistic ideology on the likelihood of identity switching behavior of new ventures.

Title: Institutions, Public Policy Strategy, and the Entrepreneurship Process


  • Jeffrey Petty, University of Lausanne
  • Jean-Philippe Bonardi, University of Lausanne

Abstract: Owing to the recent economic crisis an increasing number of countries have initiated policies designed to promote entrepreneurship. Unfortunately, based upon past evidence, not all of these policies will achieve the desired effects within the respective economies. Efforts focused on the promotion of firm formation may increase entrepreneurial activity but policy makers who fail to consider the interconnectedness of the institutional environment and policies run the risk of creating unintended negative consequences, including unproductive entrepreneurship, investment gaps, misallocation of resources, and market bubbles. In this study we adopt an evolutionary perspective in order to evaluate more comprehensive policy frameworks that impact the creation, performance, and survival of start-up firms and develop a typology of entrepreneurial ecosystems that will inform future research, entrepreneurs, and policy makers.

Title: The Relevance Of Cultural Knowledge For Strategic Legitimation: How A New Venture’s Legitimation Practices Evolve


  • Florian Ueberbacher, University of St. Gallen
  • Claus Jacobs, University of St. Gallen

Abstract: A number of studies characterize new ventures as capable of acquiring legitimacy and resources strategically. Yet, prior research remains inconclusive as to whether and when they reach such capacity. To explore this ambiguity, we conducted a longitudinal case study on how legitimation practices of a new venture evolved. The new venture under study was only able to engage in strategic legitimation practices after years in the market. Conversely, at the time of foundation, it had to resort to compensatory legitimation and thus to mobilizing substantive resources to counterbalance its lacking ability to mobilize evocative symbols. Revealing how the venture’s evolving cultural knowledge structured its legitimation repertoire, our study informs scholarship on new ventures, legitimation, and on the role of cultural repertoires for strategic action. (Keywords: New ventures, Legitimacy, Strategic Entrepreneurship, Resource Acquisition, Case Study)

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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