Determinants of Managerial Intensity in the Early Years of Organizations

This paper examines how founding conditions shape subsequent organizational evolution— specifically, the proliferation of management and administrative jobs. Analyzing quantitative and qualitative information on a sample of young technology start-ups in California’s Silicon Valley, we examine the enduring imprint of two aspects of firms’ founding conditions: the employment blueprints espoused by founders in creating new enterprises; and the social capital that existed among key early members of the firm—their social composition and social relations. We find that the initial gender mix in start-ups and the blueprint espoused by the founder influence the extent of managerial intensity that develops over time. In particular, firms whose founders espoused a bureaucratic model from the outset subsequently grew more administratively intense than otherwise-similar companies, particularly companies whose founders had initially championed a “commitment” model. Also, firms with a higher representation of women within the first year subsequently were slower to bureaucratize than otherwise-similar firms with a predominance of males. Our analyses thus provide compelling evidence of path-dependence in the evolution of organizational structures and underscore the importance of the “logics of organizing” that founders bring to new enterprises. Implications of these results for organizational theory and research are discussed

Endowing university spin-offs pre-formation: Entrepreneurial capabilities for scientist-entrepreneurs

University spin-offs are important mechanisms for creating and capturing value from scientific inventions. Academic scientists are uniquely positioned to shape such opportunities long before the university spin-off is founded. To better understand how science-based university spin-offs can be endowed for success, the preformation stage of 30 ventures co-founded over a 40 year period by a star-scientist-entrepreneur is analysed by matching his 363 co-invented US patents granted to 1476 co-authored publications and these 30 ventures. Employing the extended case method, including the analysis of extensive archival data, iterative interviews, and this unique, longitudinal, multi-level dataset, existing dynamic capabilities theory is confronted and extended with evidence as to how a star-scientist-entrepreneur senses and shapes and seizes opportunities to endow university spin-offs pre-formation. A process model is developed depicting four pre-formation entrepreneurial capabilities with which these science-based university spin-offs are endowed for success. Recommendations are made for scientist-entrepreneurs, investors, university leadership, and for innovation policymakers.Peer reviewe

California Dreaming? Cross-Cluster Embeddedness and the Systematic Non-Emergence of the 'Next Silicon Valley'

The importance of social embeddedness in economic activity is now widely accepted. Embeddedness has been shown to be particularly significant in explaining the trajectory of regional development. Nonetheless, most studies of embeddeddness and its impacts have treated each locale as an independent unit. Following recent calls for the study of cross-cluster social interactions, we look at the consistent failure of numerous localities in the United States with high potential to emulate Silicon Valley and achieve sustained success in the ICT industry. The paper contends that the answer lies in high-technology clusters being part of a larger system. Therefore, we must include in our analysis of their social structure the influence of cross-cluster embeddedness of firms and entrepreneurs. These cross-clusters dynamics lead to self-reinforcing social fragmentation in the aspiring clusters and, in time, to the creation of an industrial system in the United States based on stable dominant and subordinate (feeder) clusters. The paper expands theories of industrial clusters, focusing on social capital, networks, and embeddedness arguments, to explain a world with one predominant cluster region. It utilizes a multimethod analysis of the ICT industry centered in Atlanta, Georgia, as an empirical example to elaborate and hone these theoretical arguments.

How Emerging Organizations Take Form: The Role of Imprinting and Values in Organizational Bricolage

We examine how emerging organizations acquire shape by drawing on multiple organizational forms, a process we call organizational bricolage. Studying Indymedia London, a grassroots media collective, we propose a grounded theory of organizational bricolage that identifies how various types of organizational forms are selected and how they are instantiated into the organization. Whereas extant research has emphasized imprinting as a primary mechanism shaping newly founded organizations, we point to the additional role of organizational values. Emerging organizations augment their imprinted forms by using ancillary forms aligned with their organizational values and reinforce their core features by differentiating themselves from antagonistic forms that conflict with their values. We contribute to the literature on organizational formation by developing a process model that details how imprinted forms are subsequently modified. Moreover, we extend theories of bricolage by specifying the limits to the relative arbitrariness of bricolage as an activity, and we contribute to the study of organizational values by suggesting that they act as a focusing device shaping organizational structure

Institutional Change and the Evolution of Entrepreneurial Networks: A Comparison of Two Chinese Start-up Cohorts

Extant research provides contradictory views on the network adaptability of existing ventures and new ventures during environmental change. This research aims to resolve the controversies by comparing the network configurations and networking actions of two entrepreneurial cohorts during the course of China s institutional change after 1992. The qualitative and quantitative analyses show that existing cohort entrepreneurs display network inertia, in that they largely maintain strong tie based political and market networks; new cohort entrepreneurs instead demonstrate better adaption by establishing fewer political networks but more weak and diverse market networks. The dissertation further shows that existing cohort demonstrates a style of network deepening while the new cohort demonstrates a style of network broadening. This dissertation unpacks the institutional mechanisms underlying such differences. This dissertation also offers several implications for institutional research into network adaptation, as well as for research into entrepreneurship and networks

Are Latin American business groups different? An exploratory international political economy perspective

Purpose: This study aims to advance an international political economy (IPE) perspective that geo-political events can have long-lasting imprint effects on countries and their firms. The study also aims to explore the idea that shared political history and geography combine to create specific structural conditions that shape the international competitiveness of all firms in a region. In particular, the authors consider whether the Monroe Doctrine of 1823, which asserted American influence in the Western Hemisphere, contributed to the creation of institutional structures across Latin America (LA) affecting the strategies of all firms to this day. The authors also illustrate the IPE perspective using the example of the contemporary international competitiveness of LA business groups. Design/methodology/approach: The authors illustrate the IPE perspective using the example of the contemporary international competitiveness of LA business groups. The exploratory framework of this study leads to a proposition about the export performance of Latin American business group affiliates. The authors use firm-level performance data for 32,000 firms across emerging economies to explore the proposition empirically while controlling for alternative explanations. To do this, the authors draw on the World Bank Economic Surveys. Findings: The authors derive a proposition that argues the Monroe Doctrine has had a long-run imprint effect on economic policymaking in LA, resulting in a common, persistent and negative impact on the international competitiveness of firms. The authors find strong and consistent evidence that in terms of export performance, all Latin American firms export less and group affiliates do not outperform independent firms, This finding contrasts with the results for all the other emerging market regions around the world. Research limitations/implications: The main contribution of this study has been to suggest the potential importance of shared regional geopolitical history and geography in explaining firm-level outcomes. However, this study is preliminary and introductory, although the authors seek to control for alternative country-specific explanations of the results. The analysis considers the effects of one particular IPE phenomenon, the Monroe Doctrine, in one particular location: LA. Future work should seek to contrast LA with other geopolitical security and alternative IPE structures. They might also address the time dimension from a historical perspective: is imprinting in LA driven by the length of the Monroe Doctrine arrangements? Practical implications: The most important managerial learning point concerns the relevance of geography and political economy factors for multinational enterprises strategy formation. There is widespread understanding that context is an important determinant of subsidiaries’ performance, and that strategies need to be constructed to take account of country-specific characteristics, most importantly, in emerging economies and institutional arrangements. This paper proposes that managers also need to take account of IPE structures, including security arrangements, and to consider the resulting regional as well as national context. Social implications: The analysis suggests that not only the performance of firms, including emblematic firms, but also the socially beneficial spillovers that might be generated from them, are contingent on the regional as well as national characteristics. Thus, business groups in most emerging economies are found to yield better performance and to provide higher levels of social impact, including concerning ESG goals. However, the findings of this study suggest that the former is not true for LA, which, the authors argue, is a consequence of imprinting as a result of the Monroe Doctrine. Further work is needed to establish whether the latter effect is also not true, but if that is the case, then regionally specific policies may be required to address the resulting corporate social shortfalls. Originality/value: The core idea is that geo-political events can have long-lasting imprint effects on countries and their firms: that shared political history and geography create specific structural conditions that shape the international competitiveness of all firms in a region. The authors explore this concept with reference to the Monroe Doctrine, asking whether its assertion of US influence across the Americas contributed to the creation of institutional structures across LA affecting the strategies of all firms to this day

Inside or Outside: The Social Mechanisms of Entrepreneurship Choices. Evidence from the Mutual Fund Industry.

Actors often leave in pursuit of new ventures, even though entrepreneurial opportunities may exist inside the firm. While a bulk of work has focused on understanding the determinants of entrepreneurial transition (e.g., Aldrich and Ruef, 2006; Dobrev and Barnett, 2005; Robinson and Sexton, 1994; Sørensen, 2007a; 2007b), whether nascent entrepreneurs leave to form new ventures or stay put inside the organization remains less clear. Addressing this research lacuna, I examine the conflicting choices faced by nascent entrepreneurs and their consequences for established organizations. Drawing on the rich sociological tradition of embedding an individual’s decision making in the social context (e.g., Granovetter, 1985), I uncover the social determinants of entrepreneurial choices and their consequences for existing organizations. In the first two studies, I offer a socio-structural perspective on the choices pursued by nascent entrepreneurs: I develop a theoretical framework that relates these choices to an actor’s formative experiences (first study), and his or her position in the informal network (second study). Findings show that nascent entrepreneurs transition to external more than to internal ventures when, early in the career they gain exposure to risk and/or are socialized with coworkers who founded external ventures. The imprinting effect is partially mitigated by adaptive learning: negative feedback that individuals receive when performing their actions decreases the influence of imprinting on entrepreneurship choices. Moreover, I find that nascent entrepreneurs are more likely to found external(internal) ventures if their school network members created external (internal) ventures in the past. The effect of school networks is amplified with geographic proximity and gender homophily. Finally, I find that established organizations adapt to entrepreneurship choices: organizations provide greater compensation and discretion to employees at higher risk of entrepreneurial departures. Organizational adaptation to the threat of entrepreneurial departures decreases with organizational performance and scope. Together, my dissertation has important theoretical implications: it enhances the understanding of an individual’s role in redrawing organizational boundaries. I test my hypotheses using longitudinal data on the development of new funds in the mutual fund industry between 1979 and 2006.Ph.D.Business AdministrationUniversity of Michigan, Horace H. Rackham School of Graduate Studieshttp://deepblue.lib.umich.edu/bitstream/2027.42/64708/1/kacpercz_1.pd