Session 228

Dynamic Capabilities and Performance Implications for New Firms

Track K

Date: Tuesday, September 23, 2014


Time: 15:30 – 16:45


Room: Monaco

Session Chair:

  • Shad Morris, Brigham Young University

Title: Alignment of Firm Capabilities and Technological Regime: Implications for Firm Survival and Dominant Design


  • Tianxu Chen, Oakland University
  • Lihong Qian, Portland State University
  • VK Narayanan, Drexel University

Abstract: This study bridges the dominant design literature and the industry evolution literature to study firm survival prior to the formation of the dominant design. We distinguish de novo from de elio firms’ integrative capabilities and propose that the latter are likely to possess stronger integrative capabilities than the former. Further, we distinguish different technology regimes along three dimensions: platform versus non-platform based, software versus hardware based, and end use versus intermediate use based. We predict that de novo firms are more likely to exit in the following technology regimes than de elio firms: platform based, hardware based, or intermediate use based. We test these hypotheses with a sample of over 120 product categories with dominant designs, and the empirical results are consistent with our hypotheses.

Title: Dynamic Capabilities and Market Dynamism Effects on High-Tech Start-Up Enterprise Performance: Concept and Empirical Findings


  • George Tovstiga, EDHEC Business School

Abstract: This paper contributes a novel conceptual and empirical study that explores the contribution of dynamic capabilities to the firm’s performance in the context of the prevailing market dynamism. The study focuses on entrepreneurial high-technology start-ups. Specifically, this paper proposes a conceptual framework that links the enterprise’s dynamic capabilities (in their expression as shaping factors – sensing, seizing and reconfiguring; Teece (2007, 2009, 2010)) to enterprise performance (functional and evolutionary fitness; Helfat et al. (2007), and the moderating effects of market dynamism (Eisenhardt and Martin, 2000). Empirical findings (quantitative analyses) indicate a significant contribution of reconfiguring to the enterprise’s functional fitness, while market dynamism is shown to play a significant moderating role on both functional and evolutionary fitness.

Title: How Dynamic Capabilities Generate Competitive Advantage in Extreme High Velocity Environments


  • Massimo Colombo, Polytechnic University of Milan
  • Evila Piva, Polytechnic University of Milan

Abstract: Scholars in strategic management are calling for further research to understand under which conditions DCs positively impact on firms’ competitive advantage. This paper heeds this call by arguing that two prominent DCs - i.e., new product development and expansion in international markets - are beneficial for firms in an extremely high velocity environment only when they are used extensively and in combination. First, only an ample reconfiguration of firm’s resources can match discontinuous and fundamental changes. Second, complementarities among the two DCs render the resource reconfiguration difficult to imitate by competitors, thus satisfying the VRIN condition. To test our hypotheses, we develop novel measures for the two DCs under investigation and rely on a sample of Italian high-tech entrepreneurial ventures in the extreme high velocity environment forged by the global crisis. Our results are in line with our predictions.

Title: Understanding the Process of New Venture Evolution in Nascent Markets


  • Charlotte Pauwels, Ghent University

Abstract: A growing body of research devotes attention to new venture evolution in uncertain and ambiguous environments. Building on the detailed study of a new venture’s development process in a nascent market we aim to provide a more complete understanding of new venture evolution in nascent markets. Our approach enables us to identify that this evolution involves fundamentally different processes of adaptation over time. We introduce the concept of a “legitimate venture archetype” as an important contingency to distinguish between experimental and structural processes of archetype adaptation. We extend prior studies by showing that evolution from an initial archetype to subsequent archetypes involves fundamentally different adaptation processes of both business model and resource configuration.

All Sessions in Track K...

Sun: 08:00 – 09:15
Session 386: Entrepreneurial Corporate Governance
Sun: 09:30 – 10:45
Session 387: Social Capital in Emerging Markets: Local, Glocal or Global?
Sun: 11:15 – 12:30
Session 462: Crowdfunding: State of the Art and Directions for Future Research
Sun: 15:45 – 17:00
Session 235: Cognitive and Behaviorial Perspectives of Entrepreneurial Decision Making
Session 380: Small, Young and Entrepreneurial Firms: A Unique Perspective in Globalization
Sun: 17:15 – 18:30
Session 607: Entrepreneurship and Strategy IG Business Meeting
Mon: 08:00 – 09:15
Session 227: Entrepreneurial Orientation, capabilities and firm performance
Session 445: Adaptation issues for Entrepreneurial Firms
Mon: 11:00 – 12:15
Session 232: Theory Building in the Field of Entrepreneurship
Session 440: Entrepreneurial Strategies in Emerging and International markets
Mon: 14:45 – 16:00
Session 231: Entrepreneurial Leadership: What it Takes to be a Successful Enterprise?
Session 457: Ownership and Funding Structures: Performance Implications for the entrepreneurial firms
Mon: 16:30 – 17:45
Session 226: Culture, Norms and Institutions: The contextual influences on Entrepreneurship
Session 229: Who Founds and how the Founding Team Impacts the Entrepreneurial Firm?
Tue: 08:00 – 09:15
Session 224: Funding an Entrepreneurial Venture: What Works and What Does Not?
Session 236: Universities, Academics and Incubators: The Role of Academic Institutions in Shaping Entrepreneurial Firm and Outcomes
Tue: 11:00 – 12:15
Session 230: TMTs as Firm Resources
Session 309: New Conversations on Business Models
Tue: 15:30 – 16:45
Session 225: Entrepreneurial Networks: Formation and Implications
Session 228: Dynamic Capabilities and Performance Implications for New Firms
Tue: 17:15 – 18:30
Session 234: Institutional, Industry and Firm Specific Impacts on Nascent Firms
Session 441: Funding Entrepreneurial Ventures: Sources and Successes

Strategic Management Society