Session 177

Entrepreneurial Growth Strategies

Track K

Date: Tuesday, November 8, 2011

 

Time: 08:00 – 09:15

Paper

Room: Poinciana Salon 3


Session Chair:

  • Robert Burgelman, Stanford University

Title: Integrating Entrepreneurial Behavior and Strategic Resource Allocation – An Exploratory Analysis

Authors

  • Taina Tukiainen, Hanken Swedish School of Economics
  • Robert Burgelman, Stanford University

Abstract: In this paper, we examine the balancing of top management’s intent and entrepreneurial activities of lower-level managers to generate corporate growth. We study how entrepreneurial activities evolve, and how learning takes place in several dimensions of their life cycle. We examine initial conditions, the definition of emerging entrepreneurial initiatives, their gaining of impetus, the role of strategic and structural contexts in shaping their further development and final outcomes in a portfolio of 37 ventures and a couple of mainstream business cases at Nokia from 1998 to 2008. We study the competitive dynamics of the wireless communications industry, which require continuous exploration and exploitation of new opportunities to succeed; and we report how entrepreneurial behavior and strategic resource allocation processes work together to generate corporate growth. We also identify a corporate ‘success syndrome’ and associated critical factors that make it difficult to achieve breakthrough innovations.

Title: Is Franchising a Financially Performance Enhancing Strategy?

Authors

  • Melih Madanoglu, Florida Atlantic University
  • Kyuho Lee, Sonoma State University
  • Gary Castrogiovanni, Florida Atlantic University

Abstract: Franchising emerged as an important growth strategy in numerous industries. While antecedents of franchising are well researched, the findings about firm financial performance are mixed and inconclusive. We set out to address this deficiency by comparing firm financial performance of franchising and non-franchising restaurant firms industry. We use five different performance measures: the Sharpe Ratio, the Treynor Ratio, the Jensen Index, the Sortino Ratio, and the Upside Potential Ratio. After controlling for market and firm-specific factors, we find that franchising restaurant firms outperformed their non-franchising counterparts in all cases. Simply stated, franchising pays! That is, we obtained evidence that publicly-held restaurant firms during our study interval on average performed better if they franchised than if they did not.

Title: The Sustainability of the Bricolage – Firm Growth Relationship

Authors

  • Pia Arenius, Turku University
  • Mikko Rönkkö, Aalto University
  • Juhana Peltonen, Aalto University

Abstract: Entrepreneurial bricolage may enable resource-constrained firms to develop resources from seemingly nothing. However, only a few empirical study the relationship between bricolage and firm growth. Furthermore, it has been suggested that bricolage can hinder growth if the practice becomes deeply institutionalized in the firm’s routines. To examine these issues, we obtained survey data from 228 small Nordic software firms between 1 to 33 years of age using a novel bricolage scale. Using structural equation modeling, we find that bricolage has an inverted U-shaped relationship on growth. Furthermore, our model suggests that firm age may negatively moderate this relationship. This suggests that growth-driving effects of bricolage diminish as the firm grows older. Growth-oriented managers should therefore not be blinded by the initial successes created through bricolage.

Title: Venture Size and Scope Among Small Firm Startups

Authors

  • Alicia Robb, Ewing Marion Kauffman Foundation
  • Simon Parker, University of Western Ontario
  • Timothy Bates, Wayne State University

Abstract: We focus on the determinants of venture growth using a framework that entails grouping applicable determinants into three overlapping categories: characteristics of the founder, traits of the firm, and strategies employed to achieve venture viability, growth, and success. Our focus is on organic firm growth as opposed to growth generated by acquisitions. Utilizing econometric models drawing upon 2004 base year variables and followup information collected annually from 2005-2008, our objective is to explain one-year growth rates as well as longer term growth rates of the young ventures. Controls for certain environmental factors -- such as macro variables capturing cyclical economic conditions -- are introduced into the econometric models explaining growth.

All Sessions in Track K...

Sun: 09:30 – 10:45
Session 333: Paper Development Workshop
Sun: 11:15 – 12:30
Session 334: Business Model Innovation And Competitive Advantage
Sun: 13:45 – 15:00
Session 335: Business Model Innovation: The Practitioner Perspective
Mon: 08:00 – 09:15
Session 172: The Business Model: A New Construct For Strategy And Entrepreneurship
Session 179: Spinouts and Spinoffs: Antecedents, Mechanisms, Consequences
Mon: 11:00 – 12:15
Session 187: Assets And Resources: Extending Received Wisdom
Mon: 13:30 – 14:45
Session 175: Entrepreneurial Orientation: Revisiting The Construct
Session 190: Exploring The Determinants Of Entrepreneurial Activity
Mon: 15:15 – 16:30
Session 176: An Increasingly Multi-Polar World: How Do Entrepreneurial Firms Respond?
Tue: 08:00 – 09:15
Session 177: Entrepreneurial Growth Strategies
Session 178: Geographic And Locational Influences On Strategy And Entrepreneurship
Tue: 11:15 – 12:30
Session 183: Signaling and Discourse: How Entrepreneurial Firms Sell Themselves
Session 192: Social And Global Entrepreneurship
Tue: 14:15 – 15:30
Session 184: The Role Of Learning For Entrepreneurship In Uncertain And Dynamic Environments
Session 186: Creativity, Innovation And Entrepreneurship
Tue: 16:00 – 17:15
Session 174: How Institutional Forces Shape Strategy And Entrepreneurship
Session 311: Linking Organizational Identity To Strategy And Entrepreneurship
Wed: 08:00 – 09:15
Session 173: Understanding Initial Public Offerings Better
Session 193: Financing Entrepreneurship And Innovation
Wed: 09:45 – 11:00
Session 191: Firms, Industries And Markets: Multi-level Perspectives On Entrepreneurship And Strategy


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