An examination of the influence of industry structure on eight alternative measures of new venture performance for high potential independent new ventures

Robinson, Kenneth C.

doi:10.1016/s0883-9026(97)00083-9

Cited by 136 publications

(109 citation statements)

References 30 publications

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“…Within the entrepreneurship literature, a firm has been considered to be a new venture through either six (e.g. Robinson, 1999), eight (e.g. Biggadike, 1976) or ten years of age (e.g.…”

Section: Samplementioning

confidence: 99%

International exposure through network relationships: Implications for new venture internationalization

Fernhaber

2013

Journal of Business Venturing

147

126

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Abstract:Drawing on the network literature and attention-based view, we examine the extent to which international exposure from key informal (geographically proximate firms) and formal (alliance partners) network relationships impacts new venture internationalization. Our findings are three-fold. First, international exposure from both types of network relationships positively influence new venture internationalization, and serve as substitutes for each other. Second, the effects differ based on the age of the venture. While older ventures benefit more from international exposure from alliance partners, younger ventures are more influenced by international exposure from geographically proximate firms. Third, our analysis confirms a three-way interactive effect of age and international exposure from informal and formal relationships on new venture internationalization.Keywords: New venture, Internationalization, Knowledge, Age Executive summaryThe importance of networking in the international context continues to escalate due to the increasing interdependencies between firms, countries and markets (Dunning, 1995). For new ventures that battle liabilities of foreignness and newness concurrently, the relevancy of networks is magnified even further (Johanson and Vahlne, 2009). Despite the growing literature stream on networks, there are three relatively ignored aspects of network relationships that could have significant implications for internationalizing ventures. First, although pioneering research on entrepreneurial networks has long recognized the differential benefits of informal versus formal networks (Birley, 1985), the implications of network relationship formality for internationalization remain understudied. Second, limited research has been conducted that moves beyond the extent of network relationships to alternatively consider the ability of those relationships to expose a venture to internationalization. International exposure is broadly defined as the extent to which a venture's management team comes into contact with international knowledge through prior experiences or network relationships. Third, it is unclear how the reliance on various network relationships potentially differs among younger and older ventures, despite the fact that the management literature frequently recognizes the evolutionary nature of ventures (e.g., Katz and Kahn, 1978, Lippitt and Schmidt, 1967, Quinn and Cameron, 1983and Scott, 1971).The purpose of this paper is to respond to these gaps in the literature. We explore if international exposure through informal and formal network relationships positively impacts the internationalization of new ventures, and if so, whether or not the relationship differs according to the age of the venture. The theoretical foundation for our research is the network literature supplemented by the attention-based view.Our analyses of 448 U.S.-based, high-growth ventures in high-technology industries offer a series of findings. First, international exposures from both formal (alliance partners) ...

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“…Within the entrepreneurship literature, a firm has been considered to be a new venture through either six (e.g. Robinson, 1999), eight (e.g. Biggadike, 1976) or ten years of age (e.g.…”

Section: Samplementioning

confidence: 99%

International exposure through network relationships: Implications for new venture internationalization

Fernhaber

2013

Journal of Business Venturing

147

126

View full text Add to dashboard Cite

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“…2007). 6 For further discussion of performance measures, see : Chandler & Hanks 1993;Robinson 1999;Vesper 1996;Watkins et al 2003. 7 In the questionnaire design, the key motivation behind using ordered categorical responses instead of asking for exact figures is that the former method leads to higher response rate.…”

Section: Discussionmentioning

confidence: 99%

“…Even though no consensus regarding the definition of small business performance exists, increase in sales, profitability and increase in market share are four ways in which business performance is typically measured (Chandler & Hanks 1993;Robinson 1999;Vesper 1996;Delmar et al 2003;Watkins et al 2003). Ultimately, however, it is financial performance that decides the future of any business venture.…”

Section: Measurement Of Entrepreneurial Successmentioning

confidence: 99%

Small- and Medium-Sized Businesses’ Growth Expectations and Financial Performance in Latvia: Does Ethnicity Matter?

Aidis¹,

Mickiewicz²,

Sauka³

2011

Journal of Baltic Studies

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By applying regulatory focus theory, this paper investigates the impact of both 'initial confidence' and of 'exactness of growth expectations' on the financial performance of small and medium-sized firms in Latvia. Drawing on a data set based on repeated survey design, we explore the complexity of this relationship empirically. Our overall findings suggest that when controlling for other relevant factors, such as actual growth, entrepreneurs having higher growth expectations perform significantly better in terms of profitability. In addition, education has a strong modifying effect: the impact of high growth expectations on subsequent profit performance is stronger for entrepreneurs with a lower level of education. Moreover, these effects are amplified by ethnicity: they are much stronger for ethnic Russian entrepreneurs compared with ethnic Latvian entrepreneurs.

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“…But firms can enter in the park not only in their incipient form, but also latter, even once they have consolidated their business, so there are firms older that have just arrived to the park. In particular, most of them (66 of 76 firms) are new ventures (have to be 6 years old or younger - Robinson, 1999;Shrader et al, 2000), and 33 of them, 50% of the firms, have the same age as years in the park. Table 1 shows the main descriptive statistics for the variables associated with the firms' networks for the whole sample and for the subsamples identified (incubation period, growth period and maturity period).…”

Section: Other Variablesmentioning

confidence: 99%

From incubation to maturity inside parks: the evolution of local knowledge networks

Díez‐Vial

Montoro‐Sánchez

2017

IJTM

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This paper analyses the effect of the evolution of local knowledge networks on the innovative capacity of firms co-located. Using a network dynamic approach, this paper argues that the length of time that firms spend in a science park affects their local knowledge network. By the identification of three stages of local development-incubation, growth and maturity-, this study provides new insights about the role of science parks in both increasing their innovative capacity and promoting the exchange of knowledge among co-located firms. In this sense, science parks have been increasingly considered as a nurturing environment for business start-ups and lead to the development of growth-oriented firms, not being a consensus about how the length of time the firm spends in the park may affect these benefits.

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An examination of the influence of industry structure on eight alternative measures of new venture performance for high potential independent new ventures

Cited by 136 publications

References 30 publications

International exposure through network relationships: Implications for new venture internationalization

International exposure through network relationships: Implications for new venture internationalization

Small- and Medium-Sized Businesses’ Growth Expectations and Financial Performance in Latvia: Does Ethnicity Matter?

From incubation to maturity inside parks: the evolution of local knowledge networks

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