275 research outputs found
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A scientific method for startups: Comparing lean and the theory-based view
Recent scholarship has sought to develop a âscientific methodâ for startups. In this paper we contrast two approaches: lean startup and the theory-based view of startups. The lean startup movement has served an important function in calling for a normative and scientific approach to startups and venture creation. The theory-based view shares this agenda. But there are differences in the underlying theoretical mechanisms and practical prescriptions suggested by each approach. We highlight these differences and their implications for both research and practice. For example, we contrast lean startupâs emphasis on bounded rationality and entrepreneurâcustomer information asymmetry with the theory-based viewâs emphasis on generative rationality and belief asymmetry. The theory-based view focuses on contrarian beliefs, associated problem formulation, and the development of a startup-specific causal logic for experimentation, resource acquisition, and problem solving. The right mix of entrepreneurial actions is contingent and startup-specificâguided by a startupâs unique theory. After pointing out differences between the lean and theory-based view of startups, we discuss opportunities for partial reconciliation, as well as opportunities for empirically comparing perspectives. Overall, we emphasize that a scientific method for startups needs to recognize the importance of contingent, discriminating alignment between entrepreneurial theories and the actions they prescribe (including different types of experimentation and validation, search, and forms of organization)
MICRO-Foundations in Strategic Management: Squaring Coleman's Diagram
Abell, Felin and Foss argue that "macro-explanations" in strategic management, explanations in which organizational routines figure prominently and in which both the explanandum and explanans are at the macro-level, are necessarily incomplete. They take a diagram (which has the form of a trapezoid) from Coleman, Foundations of Social Theory, The Belknap Press of Harvard University Press, Cambridge (Mass.)/London, (1990) to task to show that causal chains connecting two macro-phenomena always involve "macro-to-micro" and "micro-to-macro" links, links that macro-explanations allegedly fail to recognize. Their plea for micro-foundations in strategic management is meant to shed light on these "missing links". The paper argues that while there are good reasons for providing micro-foundations, Abell, Felin and Foss's causal incompleteness argument is not one of them. Their argument does not sufficiently distinguish between causal and constitutive relations. Once these relations are carefully distinguished, it follows that Coleman's diagram has to be squared. This in turn allows us to see that macro-explanations need not be incomplete
Mind, rationality, and cognition: an interdisciplinary debate
This article features an interdisciplinary debate and dialogue about the nature of mind, perception, and rationality. Scholars from a range of disciplinesâcognitive science, applied and experimental psychology, behavioral economics, and biologyâoffer critiques and commentaries of a target article by Felin, Koenderink, and Krueger (2017): âRationality, Perception, and the All-Seeing Eye,â Psychonomic Bulletin & Review. The commentaries raise a number of criticisms and issues concerning rationality and the all-seeing-eye argument, including the nature of judgment and reasoning, biases versus heuristics, organismâenvironment relations, perception and situational construal, equilibrium analysis in economics, efficient markets, and the nature of empirical observation and the scientific method. The debated topics have far-reaching consequences for the rationality literature specifically, as well as for the cognitive, psychological, and economic sciences more broadly. The commentaries are followed by a response from the authors of the target article. Their response is organized around three central issues: (1) the problem of cues; (2) what is the question?; and (3) equilibria, $500 bills, and the axioms of rationality
Dynamics on expanding spaces: modeling the emergence of novelties
Novelties are part of our daily lives. We constantly adopt new technologies,
conceive new ideas, meet new people, experiment with new situations.
Occasionally, we as individuals, in a complicated cognitive and sometimes
fortuitous process, come up with something that is not only new to us, but to
our entire society so that what is a personal novelty can turn into an
innovation at a global level. Innovations occur throughout social, biological
and technological systems and, though we perceive them as a very natural
ingredient of our human experience, little is known about the processes
determining their emergence. Still the statistical occurrence of innovations
shows striking regularities that represent a starting point to get a deeper
insight in the whole phenomenology. This paper represents a small step in that
direction, focusing on reviewing the scientific attempts to effectively model
the emergence of the new and its regularities, with an emphasis on more recent
contributions: from the plain Simon's model tracing back to the 1950s, to the
newest model of Polya's urn with triggering of one novelty by another. What
seems to be key in the successful modelling schemes proposed so far is the idea
of looking at evolution as a path in a complex space, physical, conceptual,
biological, technological, whose structure and topology get continuously
reshaped and expanded by the occurrence of the new. Mathematically it is very
interesting to look at the consequences of the interplay between the "actual"
and the "possible" and this is the aim of this short review.Comment: 25 pages, 10 figure
Governance considerations for seekerâsolver relationships: a knowledgeâbased perspective in crowdsourcing for innovation contests
The need to solve innovation problems and insource knowledge has led to an increasing number of organizations engaging in crowdsourcing activities and subsequently establishing working relationships with winning solution providers. Using a knowledgeâbased view and the problemâsolving perspective, we develop a theoretical framework suggesting how specific innovation problem attributes (i.e. the decomposability, formulation and search space of the problem) influence the governance decision (unilateral vs. bilateral) of seekers to manage the relationship with winning solvers. We empirically analyse the framework using 582 challenges broadcast on the NineSigma crowdsourcing platform. Our results indicate that problem attributes â the formulation and search space of the problem â have a positive effect on seekersâ preference towards unilateral governance structures. However, we did not find any empirical confirmation of the effect that the decomposability of the innovation problem has on seekersâ preference towards unilateral governance structures. This study offers several contributions to the crowdsourcing literature, and also has important implications for managers of organizations aiming to insource knowledge through crowdsourcing for innovation contests
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Performative Work: Bridging Performativity and Institutional Theory in the Responsible Investment Field
Callonâs performativity thesis has illuminated how economic theories and calculative devices shape markets, but has been challenged for its neglect of the organizational, institutional and political context. Our seven-year qualitative study of a large financial data company found that the companyâs initial attempt to change the responsible investment field through a performative approach failed because of the constraints posed by field practices and organizational norms on the design of the calculative device. However, the company was subsequently able to put in place another form of performativity by attending to the normative and regulative associations of the device. We theorize this route to performativity by proposing the concept of performative work, which designates the necessary institutional work to enable translation and the subsequent adoption of the device. We conclude by considering the implications of performative work for the performativity and the institutional work literatures
Institutional distance and foreign subsidiary performance in emerging markets: moderating effects of ownership strategy and host-country experience
Institutional distance has been known to be an important driver of Multinational Enterprisesâ strategies and performance in host countries. Based on a large panel dataset of 10562 firms operating in 17 emerging markets and spanning 80 home countries, we re-examine the relationship described by Gaur and Lu (2007) between regulatory institutional distance and subsidiary performance. We extend this research by (1) examining this relationship in the context of emerging markets, (2) examining the moderating effects of ownership strategy and host-country experience within the context of emerging markets and (3) accounting for a greater variety of institutions by including a large number of home and host countries. We find that institutional distance negatively affects subsidiary performance in emerging markets. Our findings also show that the negative effects of institutional distance on subsidiary performance are lesser for subsidiaries with partial ownership (than for subsidiaries with full ownership) and for subsidiaries with greater host-country experience. We discuss our findings with respect to Gaur and Luâs model, which explores the relationships between these variables in a general context
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Decision-making in international business
This paper distinguishes three domains of international business theory: the boundaries of the multinational enterprise, the external environment of the enterprise and its internal structure. The central concern of internalisation theory is the boundaries of the firm. Any general theory of international business must analyse the external environment and internal structure as well. Competition dominates the external environment whilst co-operation dominates internal structure. Different models of decision-making are required for each. Different theories of decision-making must therefore be integrated in order to transform internalisation theory into a general theory of international business. This paper examines how this can be done
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Home country supportiveness/unfavorableness and outward foreign direct investment from China
What drives the outward foreign direct investments (OFDIs) by emerging market firms (EMFs)? Drawing on a strategy tripod framework, this article proposes a theoretical model to predict OFDI by EMFs from China. Specifically, we use institution- and industry-based views to examine two facets of home country environment, namely the supportiveness from home government and unfavorableness from home industry, as important determinants of OFDI, and compare the relative strength of these effects. Further, we use resource-based view to argue that the effect of the home country environment is contingent on the international experience portfolios of EMFs
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