The Effects of Early Stage Venture Capitalist Actions on Eventual Venture Disposition

This study examines the relationship between venture capitalist actions and the eventual disposition of a venture through an IPO, which is the most profitable exit strategy. The actions included in this study were ( 1) altering the amount of their investment; ( 2) securing a concentrated equity position; ( 3) diversifying their syndicate investments; and ( 4) introducing their investees to other sources of financing. After five years, this study found a positive relationship between IPO exit and ( 1) the amount of their investment; and ( 2) the diversification of their VC syndicate. However, it found only mixed results for ( 1) venture capitalist concentrated equity position; and ( 2) introductions to other sources of funding. Finally, implications for future research are discussed

Forgiving Business Models for New Ventures

We set forth the attributes of forgiving business models that entrepreneurs can use to minimize losses while exploiting ideas to launch new ventures. Venture ideas possessing these attributes have greater potential because they can shift risk to resource providers. Thus, the success of a venture partially depends on the market conditions for others, which affects how an opportunity can be exploited. We emphasize combinations of outside options for resource providers together with their market interaction costs. Finally, we discuss the contributions of this research for entrepreneurs, its theoretical implications, and future research possibilities

New Ceos Pursue Their Own Self-Interests By Sacrificing Stakeholder Value

Short-term performance increases that are sometimes observed after CEO successions may be evidence of self-interested behavior. New CEOs may cut allocations to long-term investment areas such as research and development (R&D), capital equipment and pension funds in an effort to drive up short-term profits and secure their positions. However, such actions have unfavorable consequences for some stakeholders. This study provides evidence that both R&D and pension funding are reduced subsequent to a succession, even after accounting for industry trends. The expected short-term profitability increases are also observed. A major implication of these results is that boards of directors and other interested parties should carefully monitor the actions of new CEOs with regard to their treatment of R&D and pension funding if they would like to prevent such actions from occurring. This study also highlights the need to investigate other potential self-interested behaviors of new CEOs

Imprinting Perspective on the Sustainability of Commitments to Competing Institutional Logics of Social Enterprises

This study examines the conditions under which dual commitments to competing institutional logics, particularly a social vs. a commercial logic, are both important to organizational functioning for social enterprises. Using hand-collected data from a survey of 190 social enterprises in South Korea, we identify a reliable measure for the sustainability of competing logics. We also identify the factors associated with variation in a social enterprise’s capacity to sustain dual commitments to competing institutional logics. Using an imprinting perspective, we show that a social entrepreneur’s non-profit experience has a curvilinear effect on the sustainability of competing logics. Moreover, the non-linear effect of a social entrepreneur’s non-profit experience on the sustainability of competing logics is less profound in social enterprises with a highly ambivalent founder

Intra-Stakeholder Heterogeneity Perspective on the Hybridity of Competing Institutional Logics for Social Enterprises

Both academics and businesspeople are interested in how to make social enterprises sustainable. The focus of this research is on the different kinds of stakeholders within a group that make it easier for competing logics to coexist in social enterprises. Based on intra-stakeholder heterogeneity and competing institutional logics, we identify key sub-categories among market stakeholders such as investors, customers, and employees. We tested our hypotheses using survey data collected from 190 social enterprises in Korea. Our research shows that the hybridity of competing logics is better when there are more ethical investors in the investor stakeholder group and cross-sector employees in the employee stakeholder group. However, impure altruistic buyers do not have much of an impact on the hybridity of competing logics among consumer stakeholder groups. Our study’s analysis of intra-stakeholder heterogeneity provides theoretical insight into the hybridity of institutional logics in social entrepreneurship. This study also makes the practical suggestion that in order to achieve hybridity, managers of social enterprises should put in a lot of time and effort to understand the different institutional logics of within-group stakeholders

Enhancing the internal validity of entrepreneurship experiments by assessing treatment effects at multiple levels across multiple trials

Entrepreneurship Design of experiments Estimating and organizing micro-economic data Search

ENTREPRENEURIAL DISCOVERY BY THE WORKING POOR

We test the proposition that it is possible to train the economically vulnerable, working poor of inner cities to make entrepreneurial discoveries. We demonstrate the effective use of a model of constrained, systematic search. We employ an experimental design with a control group using the alertness approach recommended by received theory and a treatment group using systematic search. Our results indicate the systematic search approach works 25 times better among a sample of the working poor. In addition, we operationalize systematic search training protocols and implementation. We conclude by discussing special challenges inherent in training the economically disadvantaged and suggest that the lack of trust of those from outside the local community necessitates the building of bridges to targeted residents. Bridge-building, as an integral part of public policy utilizing large-scale training, might be accomplished through reliance on established community relationships.Entrepreneurship, systematic search, opportunity discovery, working poor