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New products or services often misalign with customer preferences, and sometimes these initial offerings must be abandoned and replaced. Factors influencing these “complete pivot” decisions are poorly understood. We use behavioral decision theory to develop a theoretical model of pivot decisions that tests our predictions via a conjoint analysis experiment. We find that magnitude of the miss (revenues compared to plan), length of the runway (cash available/burn rate), and attribution for the miss (reason for customer misreads) significantly influence complete pivot decisions, and we simultaneously consider interactions. Individual grit and impulsiveness also shape the effects of some attributes.

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Advances in digital manufacturing technologies have not only altered R&D processes for new product development (NPD), but they have also opened new possibilities for user innovators to engage in traditionally closed innovation processes. However, incorporating external sources of user innovation—through design challenges or crowdsourcing, for example—can introduce competing logics into exploratory innovation processes. Using the lens of complexity, we conduct an ethnographic study of the competing logics at work in the NPD processes of a corporate makerspace launched by a large firm in the consumer appliances industry. The makerspace was founded with a hybrid logic, intended to combine the community logic of makers with the corporate logic of the parent organization. We analyze the conflicts that arose between logics and how the hybrid logic evolved through four iterations of the NPD process. We identify how managing multiple logics led to structural and identity changes, and we explain how two mechanisms—structural bridging and stakeholder identity linking—enabled the makerspace to innovate with a hybrid logic and overcome the constraints of a dominant logic on the NPD process. The results offer insights into dynamic organizational responses to complexity, how new business initiatives can be structured to act as exploratory units for corporate parents, and how corporate makerspaces can help incorporate external sources of innovation.

The enormous scale of suffering, breadth of societal impact, and ongoing uncertainty wrought by the COVID-19 pandemic introduced dynamics seldom examined in the crisis entrepreneurship literature. Previous research indicates that when a crisis causes a failure of public goods, spontaneous citizen ventures often emerge to leverage unique local knowledge to rapidly customize abundant external resources to meet immediate needs. However, as outsiders, emergent citizen groups responding to the dire shortage of personal protective equipment at the onset of COVID-19 lacked local knowledge and legitimacy. In this study, we examine how entrepreneurial citizens mobilized collective resources in attempts to gain acceptance and meet local needs amid the urgency of the pandemic. Through longitudinal case studies of citizen groups connected to makerspaces in four U.S. cities, we study how they adapted to address the resource and legitimacy limitations they encountered. We identify three mechanisms—augmenting, circumventing, and attenuating—that helped transient citizen groups calibrate their resource mobilization based on what they learned over time. We highlight how extreme temporality imposes limits on resourcefulness and legitimation, making it critical for collective entrepreneurs to learn when to work within their limitations rather than try to overcome them.

In response to COVID-19 and the shortage of personal protective equipment, the maker community activated local networks in a display of collective action. We conducted a multiple case study of emergent networks to understand how makers self-organized for collective entrepreneurial action while facing resource constraints and legitimacy deficits. Although the maker community has endeavored to break free from institutional constraints, they nonetheless formed relationships with institutions in need. They deployed learned resourcefulness and learned legitimation strategies with varying degrees of effectiveness. Our findings contribute to the literature on resourcefulness, legitimation, and collective action in entrepreneurship processes.

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