Patterns of project-based organizing in new venture creation

Abstract

Purpose The creation of a new venture is at the heart of entrepreneurship and shares parallels with project-based organizing: embedded in an institutional context, founders have to assemble a team that works on specified tasks within a strict time constraint, while the new venture undergoes various transitions. The purpose of this paper is to explore parallels between both streams of research and an increasing projectification of entrepreneurship. Design/methodology/approach The study is based upon a case study of the Berlin start-up ecosystem including the analysis of interviews (n=52), secondary documents, and field observations. Findings The paper reveals that – shaped by their institutional context – patterns of project-like organizing have become pertinent to the new venture creation process. It identifies a set of facets from the entrepreneurial ecosystems – more specifically different types of organizational actors, their occupational backgrounds, and epistemic communities – that enable and constrain the process of new venture creation in a way that is typical for project-based organizing. Originality/value This study thus elaborates on how institutional settings enforce what has been called “projectification” in the process of new venture creation and discuss implications for start-up ecosystems.

Projectification and Partnering: An Amalgamated Approach for New Venture Creation in an Entrepreneurial Ecosystem

“…In the context of EE, the collaboration for NVC takes place among loosely connected individuals, teams, and organizations, and the pattern of NVC has parallels with project-like organization (Auschra et al 2018), in terms of a temporary organizational form characterized by time and budget constraints and geared toward fulfilling goals in a team environment (Lundin and Söderholm 1995;Lindgren and Packendorff 2003;Midler and Silberzahn 2008;Bakker 2010). Projectification (Midler 1995), as temporary organizational settings for new venture creation, features the four basic concepts of time, task, team, and transitions.…”

“…Projectification (Midler 1995), as temporary organizational settings for new venture creation, features the four basic concepts of time, task, team, and transitions. Auschra et al (2018) argues that the process of NVC in an EE is "project-like" to a considerable degree-that is, an entrepreneurial team has to carry out different parallel or serial tasks within a designated time frame because it has limited financing. At the same time, by selecting resourcerich and complementary partners, an entrepreneur carries out the entrepreneurial activities and interacts with partners that influence the pattern of NVC (Jiang and Tornikoski, forthcoming).…”

“…Institutions influence whether and how potential entrepreneurs open a business (Herrmann 2010). In the early phase of NVC, entrepreneurs often rely on continuous external funding to secure the survival of the new venture until a sturdier and more permanent organization can be formed (Auschra et al 2018).…”

“…However, the entrepreneurial team is the core actor in building and sustaining an EE (Stam and Spigel 2016). It can develop and contribute to interfirm networks and regional clusters (Pitelis 2012;Auschra et al 2018).…”

“…Today the entire global economy is focused on innovation and entrepreneurship (Kuratko and Hornsby 2018), and the creation of a new venture is at the heart of entrepreneurship (Auschra et al 2018). As engines of economic development, productivity growth, and employment, new ventures have received a great attention (Henrekson and Johanson 2010;Soederblom et al 2015).…”