Session 445

Adaptation issues for Entrepreneurial Firms

Track K

Date: Monday, September 22, 2014


Time: 08:00 – 09:15


Room: Rotterdam

Session Chair:

  • Kulwant Singh, National University of Singapore

Title: Are Big Customers Always Welcomed?: Major Customer Concentration, Embeddedness Conditions and Startup Performance


  • Heejin Woo, California State University Fullerton

Abstract: From the relative bargaining power perspective, major customer concentration is considered as an impediment to supplier performance. However, due to the idiosyncratic circumstances of a young entrepreneurial firm, I argue that the effect of major customer concentration on young entrepreneurial supplier performance may differ depending on the nature of the supplier-customer relationship. More specifically, under the loosely coupled relationship condition, major customer concentration and young entrepreneurial supplier performance are positively associated while they are negative associated under the tightly coupled relationship condition. From 123 U.S. young entrepreneurial firms in technology intensive industries, I find evidence that is consistent with my theoretical predictions. Underlying mechanisms and contributions are discussed.

Title: Content Versus Process: An Examination Of The Performance Of Firms Undertaking Discontinuous Strategic Renewal


  • Sandip Basu, City University of New York
  • Anu Wadhwa, Imperial College London

Abstract: We examine whether and when discontinuous strategic renewal influences a firm’s post-renewal performance. Discontinuous strategic renewal involves major shifts by firms away from existing core businesses to new ones. Although there are significant risks involved in discontinuous renewal, it could have long-term benefits such as an improved post-renewal competitive position. We first argue that undertaking discontinuous renewal improves firms’ post-renewal performance as compared to firms that do not undertake such renewal. Moreover, appropriate selection of the new industry that a firm shifts to, and a phased transition to this new industry, enhance its post-renewal performance. We test our predictions using longitudinal data on 461 Fortune 500 firms for the period 1990-2000.

Title: How Institutional Contexts Impact Small Venture Internationalization: A Comparison of Developed and Emerging Market Countries


  • Joseph LiPuma, EMLYON Business School
  • Christiane Prange, Tongji University

Abstract: Countries with sound institutions create more robust environments for venture performance. However, due to the liabilities faced by small ventures that do not possess slack resources or market power, we contend that institutions are especially important for small firms. We contend that this difference is heightened in emerging economies as compared to developed economies with respect to firm exporting. We test our hypotheses using data from the World Bank’s World Business Environment Survey. The results of our analyses offer support for our model, as some institutional variables appear to be more important to export performance than others in each economic context. We conclude by discussing the implications of our results for managers.

Title: Organizational Adaptation in Recurring Economic Shocks


  • Abhirup Chakrabarti, Queen's University
  • Kulwant Singh, National University of Singapore

Abstract: The recent recurrence of economic shocks has raised new questions about how firms adapt to sudden environmental change. Studies examine the importance of growth opportunities, but view shocks as isolated events. We argue that this limits understanding how well growing firms are able to adapt and continue to access opportunities in the context of recurring shocks. Using a sample of firms that navigated recurring shocks in Asia, we find that growth during the shock of 1997-98 was followed by persistent performance disruption, and that firms that overcome negative experiences with retrenchment during the shock were more likely to access growth opportunities in subsequent shocks. The results also suggest that responses in subsequent shocks were associated with a view towards reducing financial risk.

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