Session 52

Entrepreneurial business models

Track K

Date: Tuesday, October 6, 2015

Track X

Time: 15:45 – 17:00

Common Ground

Room: Plaza Court 2


  • Constantine Andriopoulos, City University London

Title: Big Picture Strategies for New Ventures: A “Graham and Thiel” Perspective


  • Craig Armstrong, University of Alabama

Abstract: The purpose of this paper is to explore the lessons from Paul Graham’s “Painters and Hackers” (2004) and Peter Thiel’s “Zero to One” (Thiel & Masters, 2014) in the context of entrepreneurship and competitive strategy theories. The experiences and writings of Graham and Thiel suggest that strategic management and entrepreneurship scholars need to rethink some of our theories and prescriptions to practitioners. The discussion focuses on two major points: the emphasis and value we place on competition, which Thiel proclaims is “for losers” (2014) and the need for individuals and society to focus acutely on finding and solving valuable but difficult problems in a unique way (Graham, 2004; Thiel & Masters, 2014). As this paper develops the primary goals is to present a framework for identifying market opportunities that can lead to virtual monopolistic positions and to identify attributes of individuals that are required to be successful entrepreneurs.

Title: Business Model Innovations, Imitations and the Performance of Entrepreneurial Firms


  • Yang Zhao, University of Glasgow
  • Trevor Buck, University of Glasgow
  • Anna Morgan-Thomas, University of Glasgow

Abstract: In this study, we unpack the radical, incremental innovations, and imitations in business models (BMs) of entrepreneurial firms, addressing the question of how each of these activities affects firm performance at a micro-level. Through a multi-case study of BM innovations/imitations in two entrepreneurial firms representing the emerging phenomenon of business model innovation, we find that, defended through continuous incremental innovations, a successful radical innovation may contribute to establishing a long-term competitive position. On the other hand, rapid imitation ensures a quick reaction to competitors, which may positively affect firm performance in the short-term. An exploratory theoretical model, based on innovation and entrepreneurship theory, is proposed to map out the impact of BM innovations/imitations, as well as the moderators that determine their success or failure.

Title: Entrepreneurial Copycats: The Contingent Value of Business Model Imitation for New Venture Performance


  • Karolin Frankenberger, University of Lucerne
  • Wouter Stam, Hong Kong University of Science & Technology

Abstract: This study extends research on business model innovation by examining under what conditions new ventures gain performance benefits from imitating business models that originate from other industries. Using a unique multi-source, time-lagged dataset of 105 ventures operating in the Swiss pharmaceutical, chemical, and industrial electronics industries, we found that business model imitation generally enhances subsequent new venture growth. Yet, the imitation-performance link was negative when company founders have little prior industry experience. Results also indicated that firm age reduces the positive moderating effect of experience, suggesting that founders’ prior industry experience only provides temporary performance advantages for new ventures engaging in business model imitation.

Title: Product Innovation, Vertical Disintegration, and Schumpeterian Competition: A Natural Experiment in the DRAM Industry 2006-2012


  • Sungyong Chang, Columbia University

Abstract: How much vertical disintegration affect performance under Schumpeterian competition? The industry evolution literature predicts that opportunities for product innovation deplete over time and process innovation becomes more important as an industry reaches a maturity stage. However, the prediction of evolutionary economics and knowledge management literature is different; a seeming maturity stage will be punctuated by the introduction of new products. The DRAM industry offers an unusual setting to test these competing hypotheses. Taiwanese companies experimented a new business model, a DRAM foundry without an R&D unit. We exploit a natural experiment to examine how an exogenous reduction of R&D units during the 2007-2009 downturn of silicon cycle influences performance. We find that reduction of the R&D units led to sharply lower profitability (-84%).

Title: The Antecedents of New Ventures' Business Model Changes in an Emerging Industry


  • Lien Denoo, University of Southern California
  • Helena Yli-Renko, University of Southern California

Abstract: In this study, we put forward business model experimentation and alliances as drivers of new ventures’ business model changes. Using a longitudinal dataset of 188 new ventures in the emerging mobile health industry, we found that business model experimentation does not predict whether or not a firm will change its business model again in the future, but is a significant predictor of more incremental business model change for those firms that have changed their business models. Alliances, on the other hand, increase the likelihood that firms will engage in business model change but do not predict the extent of this business model change. Our study makes contributions to the business model and alliances literatures and draws on organizational learning, business ecosystem and effectuation theory.

Title: The Innovation Value Canvas: The Role of Value Propositions in the Commercialization of Technological Innovations


  • Hossein Mahdavi Mazdeh, University of Calgary
  • Loren Falkenberg, University of Calgary
  • Madelynn Stackhouse, University of Calgary

Abstract: There are numerous theories and models to guide managers in optimizing the development and commercialization of innovations, including disruptive innovation, blue ocean innovation, and open innovation. Other innovations occur independently from management intervention, rather they occur through the evolution of science. Successful commercialization of these innovations requires understanding the value proposition that is created by the innovation and aligning it with the appropriate business model. In this paper, we develop a framework that aligns business models with the different value propositions associated with innovations. We illustrate the framework using cases that illustrate different innovations and their associated value proposition. Further, we empirically test the framework through the proposed and actual value propositions of massive open online courses (MOOCS) in higher education industry.

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

All Sessions in Track X...

Sun: 08:00 – 09:15
Session 74: Open Strategy Workshops: Lessons Learned from Practising Strategizing
Sun: 09:45 – 11:00
Session 29: The Elephant in the Room: How public policy and institutions help drive innovation, entrepreneurship, and firm performance
Session 76: The evolution of the strategy as a profession and the field of strategy
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Session 38: Big Game Hunting: Accessing and Interacting with Senior Executives for Empirical Research
Sun: 13:45 – 14:30
Session 307: Lifetime Achievement Award Recipient
Sun: 14:45 – 15:45
Session 7: New Frontiers in Technologies, Fields, and Business Models: Implications for Academic and Practice Knowledge Creation
Sun: 16:15 – 17:30
Session 61: The Institutional Level of Strategizing Activities
Session 261: Knowledge Creation and Sharing in Virtual Communities
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 126: Entry Mode & Cross-Border Acquisitions
Session 140: New Perspectives on the Outside Director Selection Process
Mon: 09:45 – 11:00
Session 8: Elevating our Understanding of Organizational Performance: Bridging the Frontiers of Business and Corporate Strategies
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Session 220: Perspectives on CEO Compensation
Mon: 13:45 – 15:00
Session 16: Human Capital and Innovation
Session 37: Political Ties: Knots or Bows?
Session 63: Political and Material Aspects of Strategy Making
Session 97: Accelerators, corporate VCs and new venture creation
Session 258: Explainng CSR: External Factors
Mon: 15:15 – 16:15
Session 227: Mergers, Acquisitions and Divestitures: Reconfiguring Resource Bases for Value Creation and Growth
Session 308: Strategy Beyond the Firm: Creating and Capturing Value from External Resources
Session 310: When the Smoke Clears: The Emergence of the Cannabis Industry
Session 311: Theory Fragmentation in Strategic Management?
Session 312: Climate Change: Why and How Should Strategic Management Care?
Mon: 16:45 – 18:00
Session 42: The Word is Out! Stakeholder Responses to Public Signals of Firms' Behaviors
Session 112: Acquisitions - Before the Deal
Tue: 08:00 – 09:15
Session 309: Looking Good and Sounding Better: Impression Management by CEOs
Tue: 09:45 – 10:45
Session 9: Whatever Happened to Theory in Strategic Management?
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 116: Acquisitions - After the Deal
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 219: A Tough Crowd: Critical Examinations by Owners and Stakeholders
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 144: Board Structure: What Works Best?
Session 208: Internationalization Strategies and Performance

Strategic Management Society