Authors: Roininen, Sari; Ylinenpää, Håkan

Source: Journal of Small Business and Enterprise Development, Volume 16, Number 3, 2009 , pp. 504-520(17)

Publisher: Emerald Group Publishing Limited

Abstract:

<B>Purpose</B> - The purpose of this paper is to identify how different modes of resource configuration, entry strategy and product/market characteristics affect new ventures' start-up processes as well as outcomes in terms of firm growth and revenues. <B>Design/methodology/approach</B> - Case studies of three academic spin-offs and three non-academic new ventures are employed as a base for analytical generalisation. <B>Findings</B> - Non-academic ventures and academic spin-offs have different bases for their venture creation and follow different strategies to enter their specific markets. Academic spin-offs are to a larger extent innovative, product-oriented and enter their target markets employing a technology/science-push strategy, which requires considerable resources and partner cooperation to manage. The non-academic ventures, on the contrary, exploit emerging opportunities on the market through a market-pull strategy relying mainly on offerings already known to the market and building on their own, in-house resources. <B>Research limitations/implications</B> - Future research should benefit from investigating factors and conditions affecting different ventures' start-up process by utilizing qualitative, in-depth approaches as well as quantitative approaches and a more robust database. <B>Practical implications</B> - Venture creation processes are not uniform but dependent on situational and contextual factors. Overall, academic spin-offs come forward as examples of Schumpeterian entrepreneurship characterised by exploration and innovation, while the more "Kirznerian" and non-academic start-ups primarily recognise and exploit upcoming market opportunities based on resources they control. The results highlight challenges for nascent entrepreneurs as well as for policy makers supporting new venture creation. <B>Originality/value</B> - A comparison highlighting critical events, resource configurations and environmental conditions of different start-up processes depending on the new ventures' origin.

Keywords: Business formation; Entrepreneurialism; Entrepreneurs

Document Type: Research article

DOI: http://dx.doi.org/10.1108/14626000910977198

Publication date: 2009-08-07

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