Session 23

Strategic Entrepreneurship from Different Perspectives

Track K

Date: Monday, September 30, 2013

 

Time: 09:45 – 11:00

Common Ground

Room: Chestnut Room


Facilitator:

  • Naga Lakshmi Damaraju, Indian School of Business

Title: Comparing Super Angels and Venture Capital Firms as Entrepreneurial Investors: An Examination of Organizational Advantage

Authors

  • Benjamin Hallen, London Business School
  • Rory McDonald, University of Texas-Austin

Abstract: While early partnerships are known to be important for young firms, prior research has primarily focused on organizational partners and has generally overlooked comparisons to other partner forms, such as individuals. To address this void, we theorize the benefits of a given partner form and propose network position as a unifying mechanism for comparing quality across forms. Empirically, we use a variety of analyses to contrast the impact of Web 2.0 ventures forming early investment partnerships with either venture capital firms (organizations) or angel investors (individuals). Our triangulated evidence points to “super angels” as an important albeit underexamined category of venture investor, with the highest-caliber super angels having quality levels similar to elite venture capital firms. We conclude with implications for “organizational advantage” and entrepreneurship.

Title: How Social Status Moderates Relationship between EO and Performance

Authors

  • Yinuo Tang, University of Pittsburgh
  • Dennis Slevin, University of Pittsburgh

Abstract: Both Entrepreneurial Orientation (EO) and social status have significant impacts on firms’ performance. We ask how social status influences EO-Performance relationship. The characteristic of social status is reflected by analyst coverage of firm. We employ an objective measurement of EO. By using data of 311 firms from four innovation oriented industries, we first examined relationship between objective measured EO and firm’s performance and we also found moderating effects of social status on EO-Performance relationship. Further, we found that EO is positively related to analyst expectation of future performance.

Title: Influencing Family Business Succession: A Social Identity Perspective

Authors

  • Scott Hayward, Appalachian State University
  • David Jiang, University of Tennessee

Abstract: Drawing from a series of family business cases studies, we employ Social Identity Theory to create a model of the dynamics associated with a family successor's push for succession. We propose that successors derive power not from resource control and dependencies but from the desire to preserve the family business identity. This meta-identity guides the successor toward more consensual influence tactics. Yet resistance from the founder draws attention to role differentials between the successor and founder, making the family business identity less salient. This leads to the use of more coercive means of influence. In the end, identity and influence tactics help explain differences in successor satisfaction with the succession process.

Title: Realizing a Successful Trade Sale: Playing on the Market for Technology or Product Market?

Authors

  • Annelies Bobelyn, Erasmus University-Rotterdam

Abstract: Trade sales have become the most important exit mechanisms for Young Technology-Based firms (YTBFs). Many studies have investigated the determinants of a successful acquisition from the acquirer’s perspective. This paper however adopts the perspective of the YTBF and analyzes to what extent managerial actions of YTBFs impact the likelihood of being acquired and acquisition return. The results indicate that either having patents or having products contributes to acquisition likelihood. We further find that both the number of patents and the number of products have a negative impact on acquisition return. Finally, we detect that firms with patents do not benefit from upstream partnerships as this results in lower acquisition returns, while firms with products experience an even stronger positive effect from having downstream partners.

Title: Small Business Lending During the Financial Crisis: The Impact on Businesses in Urban Minority Communities

Authors

  • Timothy Bates, Wayne State University
  • Alicia Robb, Ewing Marion Kauffman Foundation

Abstract: A large, established literature claims to demonstrate that black- and Latino-owned firms, after controlling for risk factors, are more likely than white-owned ventures to have their loan applications rejected by banks (see, for example, Cavalluzzo and Wolken, 2005; Blanchflower et al., 2003). Is this because of their minority ownership trait only or is part of this higher rate of rejection due to their geographic concentration in minority neighborhoods? We have only limited solid empirical evidence on how and whether firms located in urban minority neighborhoods are penalized for their geographic location, other factors constant. We use Kauffman Firm Survey (KFS) data to examine this issue. We focus on the 2007-2010 time period because many banks during these years experienced unusually stressful operating conditions.

Title: The Effect Of Organizational Prominence On Employee Mobility And Employee Entrepreneurship

Authors

  • Navid Bazzazian, HEC-Paris

Abstract: We ask why employees of prominent firms are more likely to establish entrepreneurial ventures. we unfold our mechanism by embedding mobility and entrepreneurship in one framework. Building on the interplay of firms' complementary assets and core resources, we argue that superior quality of complementary assets possessed by prominent firms can give enough incentive to employees to replicate superior complementary assets in entrepreneurial work setting but at the same time deter them from joining existing incumbents. We test our hypothesis in the context of professional services sector with a novel employer employee matched dataset.

All Sessions in Track K...

Sun: 08:00 – 09:15
Session 162: Strategic Entrepreneurship
Sun: 09:45 – 11:00
Session 164: Real Options and Entrepreneurship: What Questions Can We Ask?
Sun: 11:15 – 12:30
Session 163: Entrepreneurial Firms and MNCs: An Emerging Market Perspective
Sun: 15:15 – 16:30
Session 19: Institutional Theory and Stategic Entrepreneurship
Sun: 16:45 – 18:00
Session 302: Entrepreneurship and Strategy Business Meeting
Mon: 08:00 – 09:15
Session 22: Innovation and Strategic Entrepreneurship
Mon: 09:45 – 11:00
Session 20: Informal Firms & BOP in Strategic Entrepreneurship
Session 23: Strategic Entrepreneurship from Different Perspectives
Mon: 14:00 – 15:15
Session 18: Venture Capital and the Entrepreneurial Firm
Session 24: How the Past Affects the Future in Strategic Entrepreneurship
Mon: 17:00 – 18:15
Session 25: Cognition and Learning in Strategic Entrepreneurship
Session 213: Funding of Entrepreneurial Ventures
Tue: 08:00 – 09:15
Session 21: Behavioral Theory & Strategic Entrepreneurship
Session 224: Technology and Entrepreneurship
Tue: 11:00 – 12:15
Session 26: Dyanamic Capabilities & Strategic Entrepreneurship
Session 56: A Variety of Perspectives on Strategic Entrepreneurship
Tue: 15:45 – 17:00
Session 36: International Topics & Strategic Entrepreneurship
Session 40: Qualitative Research & Strategic Entrepreneurship
Tue: 17:15 – 18:30
Session 38: IPOs & Strategic Entrepreneurship


Strategic Management Society

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