Dimensions of the venture creation process : amount, dynamics, and sequences of action in nascent entrepreneurship

This research examines the entrepreneurship phenomenon, and the question: Why are some venture attempts more successful than others? This question is not a new one. Prior research has answered this by describing those that engage in nascent entrepreneurship. Yet, this approach yielded little consensus and offers little comfort for those newly considering venture creation (Gartner, 1988). Rather, this research considers the process of venture creation, by focusing on the actions of nascent entrepreneurs. However, the venture creation process is complex (Liao, Welsch, & Tan, 2005), and multi-dimensional (Davidsson, 2004). The process can vary in the amount of action engaged by the entrepreneur; the temporal dynamics of how action is enacted (Lichtenstein, Carter, Dooley, and Gartner 2007); or the sequence in which actions are undertaken. And little is known about whether any, or all three, of these dimensions matter. Further, there exists scant general knowledge about how the venture creation process influences venture creation outcomes (Gartner & Shaver, 2011). Therefore, this research conducts a systematic study of what entrepreneurs do as they create a new venture. The primary goal is to develop general principles so that advice may be offered on how to ‘proceed’, rather than how to ‘be’. Three integrated empirical studies were conducted that separately focus on each of the interrelated dimensions. The basis for this was a randomly sampled, longitudinal panel, of nascent ventures. Upon recruitment these ventures were in the process of being created, but yet to be established as new businesses. The ventures were tracked one year latter to follow up on outcomes. Accordingly, this research makes the following original contributions to knowledge. First, the findings suggest that all three of the dimensions play an important role: action, dynamics, and sequence. This implies that future research should take a multi-dimensional view of the venture creation process. Failing to do so can only result in a limited understanding of a complex phenomenon. Second, action is the fundamental means through which venture creation is achieved. Simply put, more active venture creation efforts are more likely more successful. Further, action is the medium which allows resource endowments their effect upon venture outcomes. Third, the dynamics of how venture creation plays out over time is also influential. Here, a process with a high rate of action which increases in intensity will more likely achieve positive outcomes. Forth, sequence analysis, suggests that the order in which actions are taken will also drive outcomes. Although venture creation generally flows in sequence from discovery toward exploitation (Shane & Venkataraman, 2000; Eckhardt & Shane, 2003; Shane, 2003), processes that actually proceed in this way are less likely to be realized. Instead, processes which specifically intertwine discovery and exploitation action together in symbiosis more likely achieve better outcomes (Sarasvathy, 2001; Baker, Miner, & Eesley, 2003). Further, an optimal venture creation order exists somewhere between these sequential and symbiotic process archetypes. A process which starts out as symbiotic discovery and exploitation, but switches to focus exclusively on exploitation later on is most likely to achieve venture creation. These sequence findings are unique, and suggest future integration between opposing theories for order in venture creation.

ACE research vignette 038 : Cracking the start-up code : does it matter when you do what?

This series of research vignettes is aimed at sharing current and interesting research findings from our team of international Entrepreneurship researchers. This vignette deals with the process of new venture creation, and specifically the sequence in which different ‘start-up activities’ are undertaken.

Organisational capabilities and the role of routines in the emergence of a modern life insurer : The story of the AMP

In 1954 the Australian Mutual Provident Society (AMP) undertook a major organisational restructure. This reform provided the foundation upon which the Society was able to develop into a diversified financial intermediary in the following decades. This paper investigates the changing organisational structure within Australia's largest life insurer as it evolved from a branch structure to a multi-divisional form of management in the 1950s. The specialisation encouraged by the divisional system allowed the development of higher order routines upon which the executive could draw. The resulting growth and sophistication of the organisation in the late 1950s ensured higher order routines were able to develop to promote further development.

Using Web 2.0 tools to facilitate knowledge transfer in complex organisational environments : a primer

An often neglected but well recognised aspect of successful engineering asset management is the achievement of co-operation and collaboration between various occupational, functional and hierarchical levels present within complex technical environments. Engineering and technical contexts have been well documented for the presence of highly cohesive groups based around around functional or role orientations. However while highly cohesive groups are potentially advantageous they are also often correlated with the emergence of knowledge and information silos based around those same functional or occupational clusters. Improved collaboration and co-operation between groups has been demonstrated to result in a number of positive outcomes at an individual, group and organisational level. Example outcomes include an increased capacity for problem solving, improved responsiveness and adaptation to organisational crises, higher morale and an increased ability to leverage workforce capability. However, an essential challenge for organisations wishing to overcome informational silos is to implement mechanisms that facilitate, encourage and sustain interactions between otherwise disconnected groups. This paper reviews the ability of Web 2.0 technologies and mobile computing devices to facilitate and encourage knowledge sharing between “silo’d” groups. Commonly available tools such as Facebook, Twitter, Blogs, Wiki’s and others will be reviewed in relation to their applicability, functionality and ease-of-use by engineering and technical personnel. The paper also documents three case examples of engineering organisations that have successfully employed Web 2.0 to achieve superior knowledge management. With a number of clear recommendations he paper is an essential starting point for any organization looking at the use of new generation technologies for achieving the significant outcomes associated with knowledge transfer.

Using Web 2.0 tools to facilitate knowledge transfer in complex organisational environments : a primer

An often neglected but well recognised aspect of successful engineering asset management is the achievement of co-operation and collaboration between various occupational, functional and hierarchical levels present within complex technical environments. Engineering and technical contexts have been well documented for the presence of highly cohesive groups based around around functional or role orientations. However while highly cohesive groups are potentially advantageous they are also often correlated with the emergence of knowledge and information silos based around those same functional or occupational clusters. Improved collaboration and co-operation between groups has been demonstrated to result in a number of positive outcomes at an individual, group and organisational level. Example outcomes include an increased capacity for problem solving, improved responsiveness and adaptation to organisational crises, higher morale and an increased ability to leverage workforce capability. However, an essential challenge for organisations wishing to overcome informational silos is to implement mechanisms that facilitate, encourage and sustain interactions between otherwise disconnected groups. This paper reviews the ability of Web 2.0 technologies and mobile computing devices to facilitate and encourage knowledge sharing between “silo’d” groups. Commonly available tools such as Facebook, Twitter, Blogs, Wiki’s and others will be reviewed in relation to their applicability, functionality and ease-of-use by engineering and technical personnel. The paper also documents three case examples of engineering organisations that have successfully employed Web 2.0 to achieve superior knowledge management. With a number of clear recommendations the paper is an essential starting point for any organization looking at the use of new generation technologies for achieving the significant outcomes associated with knowledge transfer.

Party organisation in a multi-level system: Party organisational change in Spain and the UK

This article investigates the link between regionalization of the structure of government, regional elections and regionalism on the one hand, and the organization of state-wide political parties in Spain and the UK on the other. It particularly looks at two aspects of the relations between the central and regional levels of party organization: integration of the regional branches in central decision making and autonomy of the regional branches. It argues that the party factors are the most crucial elements explaining party change and that party leaders mediate between environmental changes and party organization. The parties' history and beliefs and the strength of the central leadership condition their ability or willingness to facilitate the emergence of meso-level elites. The institutional and electoral factors are facilitating factors that constitute additional motives for or against internal party decentralization.

New work ethics? The corporate athlete's back end index and organisational performance

Drawing on Michel Foucault’s later genealogies of the Self the paper will illustrate particular dimensions of the increasingly powerful individualizing and normalizing processes shaping the lifeworlds of worker-citizens in a globalizing risk society. Processes that require those who wish to be positively identified as professional, entrepreneurial, resilient, effective, athletic to do particular sorts of work on themselves. Here the paper argues that we can identify the emergence of what we call New Work Ethics. We illustrate this more general argument via an analysis of the ways in which a large Information Technology (IT) organization seeks to produce—via a workplace health and fitness program—employees who imagine themselves as embodying the behaviours and dispositions that mark the person as a corporate athlete. Knowledge of the Self in these terms can, it is promised, enhance the performance of the Self, and the organization.

Applying outcomes of lifelong learning to organisational achievement

The focus of this doctoral research study is making the most what a person knows and can do, as an outcome from their lifelong learning, so as to better contribute to organisational achievement. This has been motivated by a perceived gap in the extensive literature linking knowledge with organisational achievement. Whereas there is a rich body of literature addressing the meta-philosophies giving rise to the emergence of learning organisations there is, as yet, scant attention paid to the detail of planning and implementing action which would reveal individual/organisational opportunities of mutual advantage and motivate, and sustain, participation at the day-to-day level of the individual. It is in this space that this dissertation seeks to contribute by offering a mechanism for bringing the, hindsight informed, response “but that’s obvious” into the abiding explicit realm at the level of the individual. In moving beyond the obvious which is prone to be overlooked, the emphasis on “better” in the introductory sentence, is very deliberately made and has a link to awakening latent individual, and hence organisational, capabilities that would otherwise languish. The evolved LCM Model – a purposeful integration valuing the outcomes from lifelong learning (the L) with nurturing a culture supporting this outcome (the C) and with responsiveness to potentially diverse motivations (the M) – is a reflective device for bringing otherwise tacit, and latent, logic into the explicit realm of action. In the course of the development of the model, a number of supplementary models included in this dissertation have evolved from the research. They form a suite of devices which inform action and lead to making the most of what an individual knows and can do within the formal requirements of a job and within the informal influences of a frequently invisible community of practice. The initial inquiry drew upon the views and experiences of water industry engineering personnel and training facilitators associated with the contract cleaning and waste management industries. However, the major research occurred as an Emergency Management Australia (EMA) project with the Country Fire Authority (CFA) as the host organisation. This EMA/CFA research project explored the influence of making the most of what a CFA volunteer knows and can do upon retention of that volunteer. In its aggregate, across the CFA volunteer body, retention is a critical community safety objective. A qualitative research, ethnographic in character, approach was adopted. Data was collected through interviews, workshops and outcomes from attempts at action research projects. Following an initial thirteen month scoping study including respondents other than from the CFA, the research study moved into an exploration of the efficacy of an indicative model with four contextual foci – i.e. the manner of welcoming new members to the CFA, embracing training, strengthening brigade sustainability and leadership. Interestingly, the research environment which forced a truncated implementation of action research projects was, in itself, an informing experience indicative of inhibitors to making the most of what people know and can do. Competition for interest, time and commitment were factors governing the manner in which CFA respondents could be called upon to explore the efficacy of the model, and were a harbinger of the influences shaping the more general environment of drawing upon what CFA volunteers know and can do. Subsequent to the development of the indicative model, a further 16 month period was utilised in the ethnographic exploration of the relevance of the model within the CFA as the host organisation. As a consequence, the model is a more fully developed tool (framework) to aid reflection, planning and action. Importantly, the later phase of the research study has, through application of the model to specific goals within the CFA, yielded operational insight into its effective use, and in which activity systems have an important place. The model – now confidently styled as the LCM Model – has three elements that when enmeshed strengthen the likelihood of organisational achievement ; and the degree of this meshing, as relevant to the target outcome, determines the strength of outcome. i.e. - • Valuing outcomes from learning: When a person recognises and values (appropriately to achievement by the organisation) what they know and can do, and associated others recognise and value what this person knows and can do, then there is increased likelihood of these outcomes from learning being applied to organisational achievement. • Valuing a culture that is conducive to learning: When a person, and associated others, are further developing and drawing upon what they know and can do within the context of a culture that is conducive to learning, then there is increased likelihood that outcomes from learning will be applied to organisational achievement. • Valuing motivation of the individual: When a person’s motivation to apply what they know and can do is valued by them, and associated others, as appropriate to organisational achievement then there is increased likelihood that appropriately drawing upon outcomes from learning will occur. Activity theory was employed as a device to scope and explore understanding of the issues as they emerged in the course of the research study. Viewing the data through the prism of activity theory led not only to the development of the LCM Model but also to an enhanced understanding of the role of leadership as a foundation for acting upon the model. Both formal and informal leadership were found to be germane in asserting influence on empowering engagement with learning and drawing upon its outcomes. It is apparent that a “leaderful organisation”, as postulated by Raelin (2003), is an environment which supports drawing upon the LCM model; and it may be the case that the act of drawing upon the model will move a narrowly leadership focused organisation toward leaderful attributes. As foreshadowed at the beginning of this synopsis, nurturing individual and organisational capability is the guiding mantra for this dissertation - “Capability embraces competence but is also forward-looking, concerned with the realisation of potential” (Stephenson 1998, p. 3). Although the inquiry focussed upon a need for CFA volunteer retention, it began with a broader investigation as part of the scoping foundation and the expanded usefulness of the LCM Model invites further investigation. The dissertation concludes with the encapsulating sentiment that “You have really got to want to”. With this predisposition in mind, this dissertation contributes to knowledge through the development and discussion of the LCM model as a reflective device informing transformative learning (Mezirow and Associates 1990). A leaderful environment (Raelin 2003) aids transformative learning – accruing to the individual and the organisation - through engendering and maintaining making the most of knowledge and skill – motivating and sustaining “the will”. The outcomes from this research study are a strong assertion that wanting to make the most of what is known and can be done is a hallmark of capability. Accordingly, this dissertation is a contribution to the “how” of strengthening the capability, and the commitment to applying that capability, of an individual and an organisation.

Constructing institutional change: emergence, contestation and convergence of business models in the field of Java application servers

How are innovative new business models established if organizations constantly compare themselves against existing criteria and expectations? The objective is to address this question from the perspective of innovators and their ability to redefine established expectations and evaluation criteria. The research questions ask whether there are discernible patterns of discursive action through which innovators theorize institutional change and what role such theorizations play for mobilizing support and realizing change projects. These questions are investigated through a case study on a critical area of enterprise computing software, Java application servers. In the present case, business practices and models were already well established among incumbents with critical market areas allocated to few dominant firms. Fringe players started experimenting with a new business approach of selling services around freely available opensource application servers. While most new players struggled, one new entrant succeeded in leading incumbents to adopt and compete on the new model. The case demonstrates that innovative and substantially new models and practices are established in organizational fields when innovators are able to refine expectations and evaluation criteria within an organisational field. The study addresses the theoretical paradox of embedded agency. Actors who are embedded in prevailing institutional logics and structures find it hard to perceive potentially disruptive opportunities that fall outside existing ways of doing things. Changing prevailing institutional logics and structures requires strategic and institutional work aimed at overcoming barriers to innovation. The study addresses this problem through the lens of (new) institutional theory. This discourse methodology traces the process through which innovators were able to establish a new social and business model in the field.