Doing More with Less: The Disordinal Implications of Firm Age for Leveraging Capabilities for Innovation Activity*

Innovation requires the entrepreneurial capabilities of opportunity recognition and opportunity exploitation. Such capabilities generally accrue over time from a firm's cumulative learning and experience. In this study, we theorize that firm age should therefore moderate the firm's ability to leverage these capabilities for innovation activity, such that older firms can obtain higher outputs from their capabilities than younger firms can. We examine this relationship using a sample of 676 small and medium enterprises. We find that when both younger and older firms have highly developed innovation capabilities, older firms appear to enjoy higher levels of innovation activity than younger firms do. However, younger firms generally appear more likely to have higher levels of innovation activity than older firms do, when neither firm has highly developed innovation capabilities. We conclude with a discussion of the implications of these findings for research and practice.     

How do entrepreneurs' cross-cultural experiences contribute to entrepreneurial ecosystem performance?

While research on the cross-cultural experience of entrepreneurs has demonstrated that exposure to diverse cultures is beneficial for new venture growth, it has neglected the performance implications of entrepreneurs’ cross-cultural experience at the ecosystem level. This study endeavors to explore the micro-macro link between cross-cultural entrepreneurs and the performance of entrepreneurial ecosystems in which they are embedded. Building on the dynamic capability perspective, we argue that entrepreneurial ecosystem orchestrators can leverage entrepreneurs’ cross-cultural experiences to develop ecosystem dynamic capabilities and consequently improve entrepreneurial ecosystem performance. Based on multi-wave survey data of 2,981 business incubators in China, our findings show that cross-cultural entrepreneurs are positively associated with entrepreneurial ecosystem performance via increased ecosystem innovation. Moreover, the integrative capability of ecosystem orchestrators moderates the relationship between cross-cultural entrepreneurs and ecosystem innovation. Our findings contribute to the literature on cross-cultural experience by extending it to the ecosystem level and inject fresh insights into the dynamic capability literature by uncovering the formation process of ecosystem dynamic capabilities.     

International new venture performance: Role of international entrepreneurial culture,ambidextrous innovation,and dynamic marketing capabilities

International new ventures (INVs) contend with environmental dynamism in global markets, compelling firms to enhance their innovation and marketing capabilities. While the INV literature is growing, it is not informative as to how INVs develop and utilize dynamic capabilities to overcome resource-constraints to enhance performance. We utilize the concept of international entrepreneurship culture (IEC) to better understand how INVs advance innovation and dynamic marketing capabilities to succeed in their internationalization activities. Building on the dynamic capabilities view (DCV), we empirically examine the relationships among IEC, ambidextrous innovation, dynamic marketing capabilities, and INV performance under varying levels environmental dynamism. The findings highlight that IEC influences both ambidextrous innovation and dynamic marketing capabilities; and, together, these link to INV performance gains. Furthermore, this research finds support for the mediating effects of ambidextrous innovation and dynamic marketing capabilities in the IEC – INV performance relationship. Additionally, the results indicate an international entrepreneurial culture is of greater significance in developing ambidextrous innovation when environmental dynamism is present. The study context is a sample of 286 high-technology INVs from India, a large and dynamic emerging market.     

Entrepreneurial Orientation,Dynamic Capabilities and International Performance

In order to be able to seize the opportunities that a dynamic operating environment opens up, entrepreneurial firms have to reconfigure their existing asset base and processes. This study explores the effect of an entrepreneurial orientation and a firm's reconfiguring capabilities on international performance by using survey data from 217 manufacturing and service organizations. Our findings indicate that a firm's entrepreneurial orientation and reconfiguring capabilities have an effect on its international performance and provide empirical support for the dynamic capability view of the firm. Entrepreneurial behavior combined with organizational reconfiguring capabilities constitutes a potential source of competitive advantage.     

Organizational Dynamic Capability and Innovation: An Empirical Examination of Internet Firms

This paper extends the dynamic capability perspective into the study of innovation by entrepreneurial firms. Drawing from both the resource-based view and the dynamic capability perspective, this paper explores theoretically and examines empirically the different roles played by a firm's resource stock (endowment of resources and capabilities) and its integrative capabilities (ability to recognize opportunities as well as to configure and deploy resources) in the process of firm innovation. Our structural equation modeling results, based on a sample of 120 Internet-based companies, indicate that both the firm's resource stock and integrative capabilities affect its innovation. Additionally, we also found that the relationship between resource stock and innovation is mediated by integrative capabilities. That is, merely possessing well-endowed resource stock per se is not sufficient for innovation. Thus, it is the firm's ability to mobilize its resources and capabilities and align them dynamically with the changing opportunities in the environment that is of vital importance as the firm constantly innovates to survive and create its own competitive advantage. In the hypercompetitive and fast changing Internet-based environment, such a need for dynamic capabilities is especially accentuated. Implications and suggestions for future research are provided.     

Dynamic capabilities in entrepreneurial firms: A case study approach

Three entrepreneurial case studies in Canada show that changes in the environment??such as changes in customers?? needs and changes in competitive products??are the major sources of opportunities. To recognize and exploit these opportunities, the firm needs entrepreneurial capabilities. At the same time, to gain long-run competitive advantage, the firm needs dynamic capabilities. The case findings show that entrepreneurial capabilities have circular and iterative relationship with dynamic capabilities??each reinforces the other. The more often the iteration takes place, the stronger entrepreneurial capabilities and dynamic capabilities are. Further, the study builds on the extant literature and develops a new method to capture dynamic capabilities through capturing changes in ordinary capabilities.     

Ethics-focused dynamic capabilities: a small business perspective

Our analysis of survey data of US small and medium-sized enterprises (SMEs) explores (1) whether firms have ‘dynamic’ capabilities that change their ethics-focused operational capabilities; (2) what effects those dynamic capabilities have on both ethical and competitive performance; and, (3) whether those effects are contingent on a firm’s entrepreneurial characteristics. Our survey reveals that about a quarter of SMEs self-report high levels of these ethics-focused dynamic capabilities. We use hierarchical OLS to analyze the survey data to find that the general effect of these capabilities is positive on an SME’s ethical performance, and that the performance effects are contingent on an SME’s degree of entrepreneurial orientation and sensitivity to changes in the business context. The main implication is that the extent of heterogeneity in types, roles, and performance effects of ‘higher-than-operations-level’ capabilities is likely underestimated in current dynamic capabilities theory and application.     

Entrepreneurship and dynamic capabilities: how firm age and size affect the ‘capability enhancement–SME performance’ relationship

The entrepreneurship and dynamic capabilities literature adds to our understanding of how strategic change can drive firm performance. We draw on a recent survey of US SMEs to determine whether entrepreneurial ventures have dynamic capabilities, and, if so, whether differences in the characteristics of those ventures lead to differences in how dynamic capabilities benefit firm performance. We find that most entrepreneurial ventures report having such capabilities and that their differences in age and size lead to differences in how dynamic capabilities affect firm performance. We consider how these results redefine the overlap of the dynamic capabilities view literature with the entrepreneurship literature, because the redeployment of resources to create and adapt to opportunities that defines what are dynamic capabilities lies at the core of what is entrepreneurial activity.     

The performance implications of entrepreneurial proclivity: A dynamic capabilties approach

Retail performance is driven in part by a retailer's ability to not only develop knowledge resources, but also convert these resources into the dynamic capability of market responsiveness. The results of this study add to the growing literature on dynamic capabilities by showing that the management orientation of entrepreneurial proclivity not only aids in the accumulation of knowledge resources, but can aid (as well as hinder) the conversion of these resources into dynamic capabilities. Specifically, we show that the management orientation of entrepreneurial proclivity increases the accumulation of knowledge resources, in addition to enhancing the conversion of one knowledge resource (knowledge of suppliers) in the capability of market responsiveness. However, this same management orientation also diminishes the conversion of another knowledge resource (knowledge of regulatory agencies). The results are based on a survey of 269 small retailers.     

An empirical study on paths to develop dynamic capabilities: From the perspectives of entrepreneurial orientation and organizational learning

Dynamic capabilities are regarded as a strategic premise to creating, maintaining and upgrading sustainable competitiveness. Considering organizational learning as a mediator variable, this study tests the relationship between entrepreneurial orientation and dynamic capabilities, and identifies paths to develop dynamic capabilities and the components of these capabilities. More specifically, the factor analysis method was employed to verify that dynamic capabilities are comprised of four dimensions, i.e. environmental sensing capabilities, change and renewal capabilities, technological and organizational flexibility capabilities. It was found that dimensions of entrepreneurial orientation have a significantly positive effect on dynamic capabilities to different extents, while organizational learning, which has significantly positive effect on dynamic capabilities, plays a partial mediating role between the two. These findings indicate that companies can build dynamic capabilities through different levels of organizational learning in the context of innovative and proactive atmosphere.     

The role of entrepreneurial marketing in new technology ventures first product commercialisation

This paper sheds light on the importance of entrepreneurial marketing (EM) in the context of new technology ventures (NTVs) first product commercialisation. This study explores the role of EM expressed as the degree of complementarity between entrepreneurial orientation (EO) and market orientation (MO) in driving firms’ innovation activities including competence exploration and exploitation in achieving first product performance (FPP). The results of a survey drawn from Indian NTVs identify a significant effect for the complementarity of EO–MO on exploratory and exploitative innovation activities. Furthermore, the findings indicate a positive effect of both exploratory and exploitative activities in enhancing FPP and the contingency role of marketing capabilities (MCs) in enhancing the impact of competence exploration and exploitation in first product commercialisation.     

Achieving sustained competitive advantage in retail and consumer service firms: The role of entrepreneurial orientation and entrepreneurial bricolage

The vital role of entrepreneurial orientation and entrepreneurial bricolage in creating sustained competitive advantage in retail and consumer service firms is increasingly acknowledged in modern markets. Using data from 246 retail and consumer service firms (hereafter R&CSFs) in Japan, this paper develops and empirically tests a framework delineating how entrepreneurial-oriented R&CSFs strategically combine existing resources while managing risks to differentiate their service portfolios to be competitive. The findings reveal that entrepreneurial orientation and entrepreneurial bricolage influence differentiation advantage and risk management, which, in turn, is associated with creating a sustained competitive advantage (hereafter SCA). This paper adds novel insights to the dynamic capabilities view and retail and service marketing literature by identifying entrepreneurial orientation, entrepreneurial bricolage, and risk management as dynamic capabilities, which allows R&CSFs to create service innovations in resource-constrained environments.     

Dynamic capability in a small global factory

In order to balance their local and global operations optimally, SMEs are moving toward a ‘global factory’ type of organizational form, meaning a differentiated network of activities held together through the control of key assets and flows of knowledge, and coordinated by a focal firm. Managing such a network requires a specific dynamic capability comprising, according to our study, cognitive, managerial, and organizational capabilities. Cognitive capabilities – cultural awareness, entrepreneurial orientation, and a global mindset – are the basis for a global factory because they are the source for opportunity recognition and exploitation, and are therefore crucial. The focal firm's organizational flexibility and absorptive capacity, as well as managerial capabilities in the areas of interface competence and analytical capability, are needed in the steering of a small global factory, the success of which depends on the nurturing of these assets.     

The Evaluation of Innovation Capabilities in Small Software Firms: A Methodological Approach

This paper presents a methodological approach for the evaluation of innovation capabilities in small software firms. The methodology is based on the assumption of a relationship between specific resources managed by small software firms and their innovation capabilities. Within the proposed methodological approach, a model for the quantitative analysis of innovation capabilities is presented. In order to show how the methodology can be applied to concrete situations, three case studies of small firms operating in the software sector and information services are presented and discussed.     

A new innovation paradigm: European cohesion policy and the retreat of public science in countries in Europe's scientific periphery

This article seeks to undertake a critical assessment of the changing position of public science in the entrepreneurial ecosystem of the countries on the periphery of European research. These countries are driven by new innovation paradigm based on entrepreneurship, which are implemented within the European Smart specialization strategy (S3). This article argues that S3 is widely implemented in the cohesion countries and, while it provides substantial resources for science, technology, and innovation, it fails to provide sustainability in the public research sector. This has direct implications for policies concerning innovation and entrepreneurial ecosystems. In order to prove the thesis, the article provides theoretical argumentation for emergence of a new innovation paradigm, driven by the rise of the entrepreneurial ecosystem, its incorporation into S3, and a consequent retreat of science policy in favor of entrepreneurial policy. The empirical analysis is focused on the funding trends seen in the business and public research sectors over the last decade (2008–2017), which have clearly shown that S3 has not contributed, despite expectations, to an increase in public expenditure for science. This signifies S3's neglect of public research within entrepreneurial ecosystems and challenges the ability of S3 to reduce wide disparities in research and innovation performance across the European Union. This ultimately endangers the innovation potential of the entrepreneurial ecosystem itself.     

Microfoundations of dynamic new venture partnering capabilities

Managing relationships with new venture suppliers require the adaptation of supplier management practices and routines. This research builds upon the dynamic capabilities perspective to explicate the ability to partner effectively with new venture suppliers as a dynamic capability. We argue that new venture partnering capability (NVPC) encompasses sensing, seizing, and transforming capabilities. Firms with sensing capabilities can interpret new ventures' value propositions and then match them to the needs of their business units. Seizing capabilities allow firms to coordinate and develop the relationship with a new venture supplier to capture value. Transforming capabilities enable firms to adapt resources and reconfigure their sensing and seizing capabilities. Our findings suggest that firms accelerate the transformation and strengthen dynamic NVPCs by applying entrepreneurial behavior through high-quality and regular interactions with new venture suppliers and embedding a dedicated new venture function. We also find that dynamic NVPCs can reside at different levels and that entrepreneurial managers can stimulate the development of organizational NVPCs. In general, we provide further empirical evidence on how buying firms can more effectively leverage the potential of new venture suppliers.     

我国产业技术创新能力的若干思考

中国产业发展的关键是提高产业技术创新能力。我国技术创新所处的新环境对技术创新能力提出很大的挑战,而科技水平不高和创新机制不完善说明了我国产业技术创新能力还不高,与发达国家还有很大的差距,从而提出了现阶段提高我国产业技术创新能力的对策。     

Dynamic capabilities and venture performance: The effects of venture capitalists

After going through the initial public offering (IPO), new ventures face increased competition, greater public examination, and increased government scrutiny. Resource base weaknesses and external forces pose severe threats to the survival and success of new ventures. Building from resource-based theory, we first examine and delineate dynamic capabilities from entrepreneurial capabilities in entrepreneurship. We then develop theory to explain how venture capitalists (VCs) endue their ventures with greater dynamic capabilities in order to address these weaknesses and threats. We test our hypotheses on a match-pair sample of VC-backed and non-VC-backed new ventures and find that VC-backed ventures demonstrate greater dynamic capabilities as they relate to product and management development but do not display any greater dynamic capabilities as they relate to legal and government regulation threats. Further analysis also revealed that VC experience and VC reputation were positively related to 1-year stock price returns.     

解铃还须系铃人:疫情之下企业家身份焦虑的诱因与化解

经历重大疫情的小微企业面临更为严峻的创新挑战,也使企业家身份焦虑成为常态。文章聚焦疫情暴发这一特定背景,将小微企业对政商关系的预期视为诱发企业家身份焦虑的逻辑起点,从企业所处的外部制度环境和市场环境切入,探索化解企业家身份焦虑并提升小微企业创新意愿的可行路径。研究发现,企业家对政商关系的预期是身份焦虑的重要来源,企业家身份焦虑与小微企业创新意愿之间的关系会受到政策置信性和网络嵌入行为的双调节效应的影响。由于企业家身份焦虑难以避免,提高对政策置信性的预期能够有效缓解政商关系感知引发的企业家身份焦虑。疫情之后的复工复产活动中需要进一步缩短政策的传导链条,加强小微企业之间制度化互动,重塑企业家的自我身份认同,控制企业家身份焦虑的有效边界,推动小微企业持续健康发展。     

Entrepreneurial orientation,entrepreneurial competencies,innovation, and performances in SMEs of Pakistan: Moderating role of social ties

The current study examines the mediating role of innovation and entrepreneurial competencies in entrepreneurial orientation’s relationship with financial, social, and environmental performance. This research also determines the role of social ties in strengthening the association between innovation and entrepreneurial competencies with social, financial, and environmental performance. Using multi-source and time-lagged studies, the data was collected from 297 small and medium-sized enterprises (SMEs) in Pakistan, and structural equation modeling was used to test direct, indirect, and moderating hypotheses. The findings show that entrepreneurial orientation, entrepreneurial competencies, and innovation positively correlate with all the types of performance under investigation and confirm the mediating role of innovation and entrepreneurial competencies. Additionally, social network ties strengthen innovation—financial performance, and entrepreneurial competencies—social performance relationship. This research proposes significant theoretical and managerial implications by determining the impact of entrepreneurial orientation on SMEs in Pakistan.