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.

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.

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.

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%).

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.

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.