Environmental jolts, entrepreneurial actions and value creation: A case study of Trend Micro

Liu, Tzu-Hsin; Hung, Shih‐Chang; Chu, Yee-Yeen

doi:10.1016/j.techfore.2006.05.010

Cited by 10 publications

(9 citation statements)

References 27 publications

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“…For example, in accordance with the view that environmental jolts can serve as catalysts for action, Sine and David (2003) show that the energy crises of the seventies created new opportunities for entrepreneurial actions. Similarly, Liu et al (2007) illustrates how the diffusion of computer viruses in IT networks, by abruptly shifting customers’ cognition, allowed a company (Trend Micro) to prosper, by introducing innovative anti-virus services. In mid-2020, popular press has described several success stories of startups that benefited from the COVID-19 pandemic and were able to significantly grow their business.…”

Section: Background and Hypothesesmentioning

confidence: 99%

“…Environmental jolts are major unanticipated and disruptive changes that happen suddenly and at any time, in both stable and dynamic environments ( Bradley, 2015 ). They cause a shock on both demand and supply sides ( Chakrabarti, 2015 ), that makes firms lose suddenly their environmental fit ( Meyer et al, 1990 ), but also opens new opportunities for value creation which were not there before ( Sine and David, 2003 ; Liu et al, 2007 ). By analyzing the effect of DCs in the aftermath of a discontinuous change, we offer valuable insights to managers and entrepreneurs on how to respond to this change.…”

Section: Introductionmentioning

confidence: 99%

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Dynamic capabilities and high-tech entrepreneurial ventures’ performance in the aftermath of an environmental jolt

Colombo

Piva

Quas

et al. 2021

Long Range Planning

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This paper contributes to studies on dynamic capabilities (DCs) by showing that a neglected environmental contingency – i.e. the occurrence of a jolt – shapes the DCs–performance relationship. We focus on high-tech entrepreneurial ventures because these are the firms that jolts affect most; in so doing, we also advance the understanding of DCs in the entrepreneurship field. We argue that, in the aftermath of an environmental jolt, the high-tech entrepreneurial ventures that use internationalization and new product development capabilities to modify their resource configuration and regain environmental fit enjoy better performance. Econometric estimates on a sample of 340 Italian high-tech entrepreneurial ventures confronting the consequences of the global economic crisis that began in 2008 confirm that separately using these two DCs has a positive performance effect. This effect is stronger for relatively smaller ventures. Interestingly, despite synergies should arise from the combined use of the two DCs, we do not detect any superadditive effects.

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Section: Background and Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Dynamic capabilities and high-tech entrepreneurial ventures’ performance in the aftermath of an environmental jolt

Colombo

Piva

Quas

et al. 2021

Long Range Planning

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“…As marketing efforts, competition, and changes in the business environment trigger the evolution of consumer demand for innovations [33], consumer preferences for innovative products evolve over time [34]. Consumers want and need better performance than before in terms of efficacy of produce use, effectiveness, and ease of use.…”

Section: Sustaining Innovative Success: Guidelines For Consumer-centrmentioning

confidence: 99%

Sustaining Innovative Success: A Case Study on Consumer-Centric Innovation in the ICT Industry

Choy

Park

2016

Sustainability

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Abstract:The phenomenon of innovation growing rapidly and having a shorter lifespan is a structural change due to the development of ICT (Information and Communications Technology), diverse investment methods, and reduced pattern of innovation adoption. For ICT companies to survive and maintain their success in this ever-changing environment, they need to succeed in fulfilling both productivity and accuracy of innovation. To sustain their innovative success, ICT companies should consistently maintain the direction of innovation towards consumers. The present study analyzes various cases of ICT companies which succeeded or failed to maintain their prior innovative success, and suggests consumer-centric innovation as a solution. To create consumer-centric innovations, companies have to (1) predict the dynamically evolving demand of consumers and continuously transform; (2) proactively employ observation method and big data analysis to discover hidden demands; and (3) identify hassles such as wastes, inconveniences, and anxieties, and put effort in solving these hassles.

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“…Similarly, Liu et al (2007) illustrates how the diffusion of computer viruses in IT networks, by abruptly shifting customers' cognition, allowed a company (Trend Micro) to prosper, by introducing innovative anti-virus services.…”

Section: The Economic Consequences Of Environmental Joltsmentioning

confidence: 99%

“…The present paper makes a step in filling this gap by analyzing the relationship between DCs and firm performance in the aftermath of an environmental jolt. An environmental jolt is an unanticipated and disruptive change that causes a shock on both demand and supply sides (Chakrabarti 2015), makes firms lose suddenly their environmental fit (Meyer et al 1990), but also opens new opportunities for value creation which were not there before (Sine and David 2003;Liu et al 2007).…”

mentioning

confidence: 99%

Dynamic Capabilities During the Global Crisis: Evidence from Italian New Technology Based Firms

et al. 2010

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Dynamic capabilities and high-tech entrepreneurial ventures' performance in the aftermath of an environmental jolt 1 Introduction Teece and colleagues (1997, p. 516) define dynamic capabilities (DCs) as "the firm's ability to integrate, build and reconfigure internal and external competences to address rapidly changing environments". Thus, DCs reflect the "capacity of an organization to purposefully create, extend or modify its resource base" (Helfat et al. 2007, p. 4). 1 Over the past decades, numerous contributions have investigated the relationship between DCs and firm performance, concluding that the performance benefits of DCs are not automatic (see Fainshmidt et al. 2016 for a meta-analysis of these studies), but depend on diverse contingencies. In particular, taking direction from Teece et al. (1997), this literature has mainly focused on the effects of environmental contingencies on the DC-performance relation 2. Some studies have shown that economic (Fainshmidt et al. 2016) and institutional conditions (Dunning and Lundan 2010) influence the performance benefits of DCs; other studies have investigated the effects on the DCs-performance relationship of environmental dynamism 3 (Karna et al. 2016) and competitive turbulence (Danneels 2012; Wilden and Gudergan 2015). In general, prior research on how the environment shapes the DCs-performance relationship has (implicitly) assumed "system stability", namely a condition where environmental changes are gradual and not disruptive. Instead, scholars have ignored the case of discontinuous 1 DCs are based on a complex bundle of skills, processes, routines, organizational structures, and decision rules (Teece 2007). Eisenhardt and Martin (2000, p. 1106) propose a somehow different view, suggesting that, in highvelocity environments, DCs consist in "simple, experiential, unstable processes that rely on quickly created new knowledge and iterative execution to produce adaptive, but unpredictable outcome". While the two perspectives relies on different assumptions and theoretical underpinnings, we agree with Peteraf and colleagues (2013, p. 1407) in considering them as largely complementary, in spite of their different views on the nature of DCs. We also concur with Peteraf et al. (2013) that "regardless of the level of market dynamism or the nature of dynamic capabilities, dynamic capabilities may enable firms to attain a sustainable competitive advantage in certain conditional cases" (see also Di Stefano et al. 2014). In this study, we address this over-arching issue in the specific case of the occurrence of an environmental jolt. 2 An exception is in Wilden et al. (2013), who study how the effect of the use of DCs on firms' competitive advantage depends on firms' internal organization. 3 Environmental dynamism is "the amount and unpredictability of change in customer tastes, production or service technologies, and the modes of competition in the firm's principal industries" (Miller and Friesen 1983, p. 233).

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Environmental jolts, entrepreneurial actions and value creation: A case study of Trend Micro

Cited by 10 publications

References 27 publications

Dynamic capabilities and high-tech entrepreneurial ventures’ performance in the aftermath of an environmental jolt

Dynamic capabilities and high-tech entrepreneurial ventures’ performance in the aftermath of an environmental jolt

Sustaining Innovative Success: A Case Study on Consumer-Centric Innovation in the ICT Industry

Dynamic Capabilities During the Global Crisis: Evidence from Italian New Technology Based Firms

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