Session 120

Creativity, knowledge spill overs and a venture's legitimacy

Track K

Date: Tuesday, October 6, 2015


Time: 14:15 – 15:30

Common Ground

Room: Plaza Court 2


  • Constantine Andriopoulos, City University London

Title: How to Win over Employees’ Hearts and Minds: Building Internal Legitimacy in New Ventures


  • Charlotte Pauwels, Ghent University

Abstract: This study answers the pertinent question of how new ventures can attract and maintain employees. We address this issue by building on the evolving literature about organizational legitimacy. Through a longitudinal, abductive study of a successful, innovative start-up, we identify internal legitimacy, i.e. employees granting legitimacy to the organization they work for, as a means to attract and maintain employees and show how internal legitimacy can be established over time. We distinguish between manifest and latent legitimation strategies and illustrate the impact of both. We highlight the congruence between employees’ and the organization’s objectives as a precondition for effective internal legitimacy building.

Title: Innovation Paradox of Returnees: Evidence from China's High Technology Industries


  • Haiyang Li, Rice University
  • Jiangyong Lu, Peking University
  • Seong-jin Choi, Peking University
  • Xiaohui Liu, Loughborough University

Abstract: In this study, we attempt to investigate the puzzle that technology ventures led by returnees who in general enjoy technology advantage underperform the ventures led by their local counterparts. With a sample of technology ventures in China’s high technology industries, we found that while returnee ventures have a higher level of innovation input, their innovation efficiency is lower than their local counterparts. Our results also show that innovation efficiency mediates the negative effect of returnees on venture performance, especially when the ventures have a lower level of marketing efficiency.

Title: Knowledge Spillovers, Community Environmental Ideologies, and New Venture Creation in Clean Technology


  • Siddharth Vedula, Babson College
  • Jeffrey York, University of Colorado Boulder

Abstract: Using the cleantech sector as a research context and drawing upon the knowledge spillover theory of entrepreneurship (KSTE), we model the relationship between the innovative activities of marketplace incumbents and new venture creation. We extend current versions of KSTE by considering the contingent effects of community environmental ideologies. We hypothesize that ideologies regulate KSTE dynamics by shaping both opportunity recognition processes and entrepreneurial motivation. Consistent with our predictions, we find evidence that the positive relationship between the innovative activity of marketplace incumbents and new firm creation is enhanced by the strength of community environmental ideologies. Furthermore, we also find that the moderating impacts of environmental ideologies on KSTE dynamics weaken as the knowledge base in an MSA becomes more specialized in cleantech.

Title: Returnee Entrepreneurial Firms’ Innovation Performance: The Role of Business Relationships And Resources


  • Wensong Bai, Uppsala University
  • Martin Johanson, Uppsala University
  • Oscar Martín Martín, Public University of Navarre

Abstract: Returnee entrepreneurial firms have been profiled as transferors of knowledge across markets that contribute to innovative development of emerging markets. Yet, there is little understanding about what kinds of factors drive these firms’ innovation effort. From a social networks perspective, we propose that returnee entrepreneurial firms combine business and political ties and resources to nurture and upgrade their knowledge base and competitive advantages through innovation. With a survey of 200 returnee entrepreneurial firms sampled in China, the findings support our hypotheses on the role of business ties in driving innovation of returnee entrepreneurial firms. The study offers insights on how network ties with different actors and subsequently sourced resources may differentiate entrepreneurial firms’ innovation performance in emerging markets.

Title: The Bottom-up Formation of an Organizational Identity in the Context of a Social Enterprise


  • Lien De Cuyper, Imperial College London

Abstract: This research builds on identity theory to look at the bottom-up formation process of an organizational identity. Based on an ethnographic study, we focus on how individuals relate to an organization and contribute to the formation of its collective identity in the context of a social enterprise. We show how members actively contribute to the formation of the organizational identity using personal social identity components. We take a cross-level perspective and explain how individual identity translates to the collective level through three processes which we term projecting, sharing, and contextualizing. The resulting model contributes to the identity literature by focusing on the bottom-up formation of an organizational identity, the role of individuals in this and the resources used.
[Keywords: organizational identity, individual identity, social enterprise]

All Sessions in Track K...

Sun: 08:00 – 09:15
Session 10: Entrepreneurship in Base-of-the-Pyramid Markets
Sun: 09:45 – 11:00
Session 11: Crowdfunding Research: Present and Future
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Sun: 16:15 – 17:30
Session 50: Entrepreneurship and Institutional Environment
Sun: 17:45 – 00:00
Session 319: Entrepreneurship and Strategy Business Meeting
Mon: 08:00 – 09:15
Session 56: Family firms
Mon: 11:15 – 12:30
Session 119: Competition and entrepreneurial entry
Mon: 13:45 – 15:00
Session 53: New forms of entrepreneurial funding
Session 97: Accelerators, corporate VCs and new venture creation
Mon: 16:45 – 18:00
Session 59: Entrepreneurship in emerging markets
Session 98: Culture, institutions and entrepreneurship
Tue: 08:00 – 09:15
Session 54: Venture capital and angel financing
Session 118: Entrepreneurial orientation and strategic entrepreneurship
Session 217: Leadership and Governance in Family Firms
Tue: 11:00 – 12:15
Session 51: Academic entrepreneurship
Tue: 14:15 – 15:30
Session 58: Corporate VCs and spin-outs
Session 120: Creativity, knowledge spill overs and a venture's legitimacy
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 55: Entrepreneurship and cognitions
Tue: 17:30 – 18:45
Session 57: Entrepreneurial teams
Session 99: Governance and entrepreneurial finance

Strategic Management Society