Session 441

Funding Entrepreneurial Ventures: Sources and Successes

Track K

Date: Tuesday, September 23, 2014

Track X

Time: 17:15 – 18:30

Paper

Room: Monaco


Session Chair:

  • Sharon Alvarez, University of Denver

Title: Signals of Quality: Which New Ventures Are Suitable For Funding?

Authors

  • Linda Edelman, Bentley University
  • Tatiana Manolova, Bentley University
  • Candida Brush, Babson College

Abstract: Drawing on signaling theory, we examine how new ventures credibly communicate their underlying quality, using a unique dataset of 697 new ventures that sought investment from a prominent angel group located in the greater Boston, MA area during 2007-2010. Findings suggest that early on in the angel investment decision-making process signals of viability and legitimacy are significant, but as the firm moves through the process, signals of legitimacy preempt other types of signals.

Title: The Bumpy Road to Market: Conflicting Logics in the Transition from Grant Dependence to Social Entrepreneurship

Authors

  • Johannes Warther, University of Bath

Abstract: This research asks how actors handle situations of external jolts in the broader socio-cultural ecosystems disrupting their institutional logics, forcing them to strategically re-align their operations. It applies the theoretical perspective of institutional logics to analyse issues in strategy formation faced by organisations that are transitioning from public funding into financial independence. Empirical evidence is gathered from an in-depth case study of a local council project, which faced the elimination of its council budget. Initial findings demonstrate that actors who find themselves in such a situation rely on external help to guide them towards the adaptation of a new institutional logic and that the process comprises five stages, namely initial external contact, basic common ground, comprehensive understanding, gaining practical experience and living the new logic.

Title: Wasps and Tarantulas: Cooperative Agreements In Corporate Venture Capital Investment

Authors

  • Sharon Alvarez, University of Denver
  • Robert Wuebker, University of Utah

Abstract: Young, entrepreneurial firms enter into alliances with larger firms in ever-increasing numbers. A rich literature in strategy demonstrates that the older, established firm most often appropriates the value in those alliances and that the alliance negatively impacts the performance and survival of the entrepreneurial firm. This paper examines the alliance dyad from the entrepreneurial firm's perspective and seeks to understand how the entrepreneurial firm can benefit most from these alliances. We contribute to the literature on entrepreneurial firm alliances by incorporating insights from learning races to hypothesize how smaller firms might generate successful alliance outcomes, using corporate venture capital investment as our empirical testbed.

Title: Why Crowdfunding Projects Can Succeed: The Role of Proponents’ Territorial Social Capital

Authors

  • Massimiliano Guerini, University of Pisa
  • Cristina Rossi Lamastra, Polytechnic University of Milan
  • Giancarlo Giudici, Polytechnic University of Milan

Abstract: Crowdfunding implies mobilizing the crowd to finance projects which are posted on dedicated websites, known as crowdfunding platforms. In this paper, we aim at learning more on what determines the probability of a project to reach the target funding. We apply the lens of social capital, defined by the goodwill available to her/him from the structure and content of his/her social relations. In particular, we distinguish between ‘individual’ (exclusive) and ‘territorial’ (locally shared) social capital. We test our hypotheses by running Probit estimates on a sample of 461 crowdfunding projects posted by 699 proponents and hosted on 11 Italian crowdfunding platforms.

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

All Sessions in Track X...

Sun: 13:45 – 14:30
Session 295: Keynote: Lifetime Achievement Award
Sun: 14:30 – 15:15
Session 471: Keynote: CK Prahalad Award
Sun: 15:45 – 17:00
Session 203: Acquisition Implementation
Session 215: Yikes: What Now (Reloaded)?: Firm Responses to Stakeholder Activism
Session 398: Corporate Strategy and Corporate Finance: Continuing the Research Conversation
Mon: 08:00 – 09:15
Session 260: IPRs, Appropriability and Innovation
Session 338: Making Strategy, Strategic Change and the Role of Sensemaking and Sensegiving
Mon: 09:30 – 10:30
Session 296: How Social Networks Create Competitive Advantage: The Microfoundations Reputation
Mon: 11:00 – 12:15
Session 213: What is In It For Us? How Sustainability Matters for Firm Strategy
Session 352: CEO Decision Making
Session 405: Multi-Sided Platform Strategies
Mon: 13:30 – 14:30
Session 4: Business Models in their Competitive Context
Session 5: Building Strategic States
Session 298: Using Networks to Shape Strategy
Session 299: Dealing with the Euro Area Economic Crisis: Strategic Adjustment in the Period of Turmoil
Session 300: Methodological and Conceptual Frontiers in the New World of Networks
Mon: 14:45 – 16:00
Session 368: Firm Scope and Industry Competition
Session 375: Changing External Environments: How do Multinationals Respond?
Mon: 16:30 – 17:45
Session 245: Human Capital Complementarities
Session 344: Paradoxical Tensions and Innovative Strategies
Tue: 08:00 – 09:15
Session 409: Increasing the Relevance of Strategy Research
Session 446: Empirical Studies and Case Studies of Business Models
Tue: 09:30 – 10:30
Session 297: Granularity of Profit
Tue: 11:00 – 12:15
Session 469: M&As and Innovation
Tue: 14:15 – 15:15
Session 301: Strategy Frameworks: In Quest of Relevance in a Turbulent World
Session 302: Directing Strategy: The Process Challenges of Formulating and Implementing Strategy in a World of Networks
Session 470: Governance Challenges in Globalized Networks
Session 473: Rethinking the Architecture of Global Corporations
Tue: 15:30 – 16:45
Session 208: Interactions, Recombination and Adaptation Processes
Session 346: Management and Strategy Practices Reconsidered
Tue: 17:15 – 18:30
Session 441: Funding Entrepreneurial Ventures: Sources and Successes


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