Session Details: Session 1080

Ready, Set, GO! Launch Strategy and Performance

Track K

Date: Monday, October 13, 2008


Time: 11:15 – 12:30

Common Ground

Room: Salon 19


Title: A Longitudinal Study of Competency Gaps within Academic Entrepreneurship


  • Einar Rasmussen, Nord University Business School
  • Simon Mosey, University of Nottingham

Abstract: This paper develops theory to better understand the distinct competencies required to support new venture creation within the non-commercial academic environment. The study follows the initiation and early development of four university spin-offs, within the UK and Norway, in order to reveal critical competency gaps and potential sources for these competencies. We identified three competencies of innovating, leveraging, and championing that were crucial to attract external investment to the nascent ventures. To overcome competency gaps we observed that different individuals were necessary at different stages in the process. Policy initiatives may contribute to some, but not all, of these competencies.

Title: Capitalizing on Founding Team Knowledge: Ownership and Team Membership Effects on New Venture Launch Speed


  • Michael Devaughn, University of St. Thomas

Abstract: Using organizational learning and organizational demography theoretical approaches that emphasize the information and knowledge advantages of teams, we assess the ability of entrepreneurial founding teams to leverage and capitalize on its various knowledge bases by investigating the speed of new venture launch. We draw on a sample of 130 new ventures launched in the U.S. banking industry in Florida between 1996 and 2007. Our preliminary results suggests that the founding team’s internal ownership structure and initial team membership structure may play as important role in determining whether the knowledge benefits of the team are fully realized as other team compositional characteristics.

Title: Entrepreneurial Strategies of High Growth Start-ups: Building Legitimacy or Attracting Customers?


  • Bart Clarysse, ETH Zurich
  • Johan Bruneel, KU Leuven
  • Erkko Autio, Imperial College London

Abstract: We explore the growth strategies that are deployed by young technology based firms. Based on six case studies of high growth firms, we build theory on the entrepreneurial strategies of these ventures. We obtained rich data from both primary and archival sources. We find that revenue oriented companies focus on growth through attracting customers. Exit-oriented companies grow in terms of employees not revenues and try to build up legitimacy in the market for investors and acquirers through signaling experience and quality of managers as well as technology quality. Young technology firms which show both high growth in revenues and employees create legitimacy through acquisitions of complementary assets downstream in the value chain; these companies face a weak appropriability regime and a market which has to be created.

Title: Spin-Offs’ Strategy and Location Choice


  • Luca Berchicci, Erasmus University-Rotterdam
  • Andrew King, Dartmouth College
  • Christopher Tucci, Ecole Polytechnique Federale de Lausanne

Abstract: Previous studies suggest that spin-offs will locate in close proximity to the firm from which they spawned. As a result of this process, clusters of entrepreneurial activity tend to develop around a few strong parent firms. But do all spin-offs really stay close to home? In this article, we investigate which firms choose to stay nearby and which tend to leave. We test the predictive power of existing theories of location choice, and we develop a new theory particular to spin-off firms. We demonstrate that spin-off firms choose heterogeneous technological and market strategies, and we hypothesize that firms with more aggressive strategies have a greater need to maintain relationships that allow access to knowledge and facilitate coordination with complementors. We find supporting evidences of our arguments by analyzing the location and strategy decisions of intra-industry spin-offs in the disk drive industry.

Title: Start-Ups at the Gate: Examining the Link between Technological Capabilities and Agglomeration Externalities


  • Lawrence Plummer, University of Western Ontario
  • Elaine Mosakowski, Purdue University
  • Sharon Matusik, University of Colorado, Boulder
  • Zoltan Acs, George Mason University

Abstract: This study examines the impact of new firms on the performance of nearby established firms and the extent to which the technological capabilities of established firms moderates the relationship. The paper tests these arguments: First, new firms initially transmit agglomeration diseconomies that erode incumbent profits and then contribute agglomeration economies that boost the profits of nearby incumbents. Second, and more importantly, the technological capabilities of the incumbents serve to (1) “insulate” the firm from the negative diseconomies released by new firms and (2) “magnify” the benefits of any agglomeration economies. This study demonstrates that any benefits of agglomeration accruing to clustered firms are not exclusive to those in high technology sectors, but instead are most apparent in the performance of firms with greater technological capabilities.

All Sessions in Track K...

Sun: 10:00 – 11:30
Session 1507: Strategic Entrepreneurship Journal and its Relation to Entrepreneurship and Strategy
Sun: 13:00 – 14:30
Session 1607: University Entrepreneurship
Mon: 11:15 – 12:30
Session 1080: Ready, Set, GO! Launch Strategy and Performance
Session 1082: Corporate Venture Capital
Mon: 15:30 – 16:45
Session 1085: Small Firm Strategy
Mon: 17:00 – 18:15
Session 1079: Entrepreneurship in Context: International and Institutional Influences
Tue: 11:15 – 12:30
Session 1078: Entrepreneurial Orientation
Session 1083: IPOs: Causes and Consequences
Tue: 14:30 – 15:45
Session 1094: Learning and Performace in New Ventures
Wed: 10:00 – 11:15
Session 1087: Networks and New Ventures
Session 1097: Raising Capital - Risky Business!
Wed: 11:30 – 12:45
Session 1081: Venture Capital Investment: Worth the price?
Session 1099: Entrepreneurship Theory: Emerging Views

Strategic Management Society

Cologne Conference