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Since the term impact investing was first coined in 2007, there has been a tremendous growth of impact investing funds. While impact investors have been considered as a new investor type, little is known about their practices and norms. This paper aims to provide an in-depth analysis of the logics of impact investors, using the context of solutions for ocean plastic pollution. I identify both hybrid and non-hybrid impact investors in this space and suggest that hybrid impact investors can be either differentiated or integrated. These findings have implications for both our understanding of this new type of investors as well as for the literature on hybrid organizations.
From Cozy to Lazy? Institutional Dependence and Capability Erosion of Startups
Renmin University of China Shuai Meng,
Renmin University of China
Entrepreneurial firms may opportunistically leverage supportive institutions to circumvent liabilities of newness. Thus, firms may slide into the comfort zone of “institutional dependence.” We investigate the relationship between institutional dependence and the development of technological capabilities. We posit that the dependence on supporting institutions exerts a negative influence on the innovation of startups. In addition, such negative effect of institutional dependence is magnified when the product competitiveness or industry technologies reach a high level. Empirical analyses based on a panel data of 25,139 manufacturing exporter startups from 2007 to 2013 support the hypotheses.
Is Cooperation Behavior Imprinted in New Ventures? Evidence From a Natural Experiment
University of Groningen Pedro de Faria,
University of Groningen Florian Noseleit,
University of Groningen Philip Steinberg,
University of Groningen
Our study contributes to the literature on organizational imprinting and on determinants of firm cooperation by understanding how socioeconomic context of the entrepreneur is imprinted on the strategic choice sets of the created venture namely R&D cooperation strategies. We hypothesize that ventures created by individuals socialized in trust-reducing institutional environments are less likely to engage in inter-organizational R&D cooperation. Furthermore, we argue that the negative effect of founders being socialized in trust-reducing institutional environments on the likelihood of ventures to engage in inter-organizational R&D cooperation is lower when these founders were exposed to influences of trust-promoting institutional environments. We can partly confirm our hypotheses by analyzing a representative survey of German start-ups where founders were socialized in different institutional regimes before German re-unification in 1990.
Leveraging Institutional Intermediaries: Entrepreneurial Strategies to Contact Investors on a Fundraising Platform
Stanford University Song Wang,
Zhejiang University Charles Eesley,
How do entrepreneurs leverage online institutional intermediaries to acquire financial resources? We tackle this question by examining entrepreneurial strategies to contact investors on a fundraising platform. Using data from a Chinese platform that connects entrepreneurs with investors, we find that the effects of institutional intermediaries depend on how entrepreneurs leverage them. Specifically, we find that stepping-stone strategies are rewarded, whereas status-picking strategies are penalized online. Moreover, stepping-stone strategies are more beneficial in less developed regions, whereas status-picking strategies are less penalized in more developed regions. This paper conceptualizes platforms as online institutional intermediaries and contributes to institutional intermediary literature by emphasizing the agency of entrepreneurs. Also, we contribute to network dynamics research by investigating sequential attempts for initial tie formation and initial tie formation online.