When Does the Pre-entry Experience of New Entrants Improve Their Performance? A Meta-Analytical Investigation of Critical Moderators

2023 | Organization Science | Citations: 0

Authors: Cao, Zhi; Posen, Hart E.

Abstract: Although pre-entry experience is widely regarded as a critical asset that positi ... Expand

Abstract: Although pre-entry experience is widely regarded as a critical asset that positively influences new entrant performance, empirical support is mixed. To address this inconsistency, we conduct a meta-analysis of the empirical findings in 272 papers. We draw theoretically on the organizational learning literature to argue that the pre-entry experience–new entrant performance relationship is contingent on the characteristics of pre-entry experience, the environmental context of the new entrant, and the interaction between the two. In particular, we examine the effects of two levels of pre-entry experience (firm and founder), four types of founder-level pre-entry experience (entrepreneurial, managerial, industry, and functional experience), and two types of environments (industry and institutional). The meta-analysis results show a significant and positive correlation between founder-level pre-entry experience and economic performance of 0.07. Likewise, the failure rates of spinouts and diversifying entrants are 11% lower than that of start-ups. The moderating analysis results show that the correlation of founder-level pre-entry experience and economic performance is lower in knowledge- or technology-intensive (KTI) industries and higher in low-KTI manufacturing and service industries. The correlation is also higher in institutional environments with high power distance and individualism. These findings provide compelling new evidence for the importance of pre-entry experience and advance our understanding of the boundary conditions on the pre-entry experience–new entrant performance relationship. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1589. Collapse

Topics: national culture organization learning entrepreneurship productivity research and development

Methods: descriptive statistic hazard function meta analysis literature sample chi squared test

Cryptocurrency Rewards and Crowdsourcing Task Success

2023 | HICSS | Citations: 0

Authors: Meng, Shan; Zhao, Xia; Zhao, Xi

Abstract: Crowdsourcing task success depends on the contributions of developers. How to id ... Expand

Abstract: Crowdsourcing task success depends on the contributions of developers. How to identify capable developers and motivate them to actively contribute to a task is a challenging issue. This study investigates how the use of cryptocurrency rewards, i.e., the choices of stablecoins and unstablecoins affects the crowdsourcing task success, and how the relationship depends on task difficulty. Based on 3858 crowdsourcing tasks, we find that the use of unstablecoins reduces the number of participating contributors and extends the time period of having the first contributor, but has no significant effect on the likelihood of task success. In addition, task difficulty alleviates the negative effect of the unstablecoins on the number of participants. Our study potentially provides important implications for the use of cryptocurrency tokens as task rewards. Collapse

Topics: crowdsourcing cryptocurrency stablecoin task characteristic open source

Methods: experimental group regression analysis method propensity score matching survival analysis hazard function

Converging Tides Lift All Boats: Consensus in Evaluation Criteria Boosts Investments in Firms in Nascent Technology Sectors

2023 | Organization Science | Citations: 0

Authors: Shen, Xirong (Subrina); Li, Huisi (Jessica); Tolbert, Pamela S.

Abstract: Although previous studies show that the emergence of evaluation criteria for a n ... Expand

Abstract: Although previous studies show that the emergence of evaluation criteria for a new technology improves the life chances of well-performing firms, we theorize that consensus in such criteria among technology experts increases investments to all firms in the new sector. We provide a variety of supportive evidence for this claim. First, in an experiment with 80 Chinese investors (Study 1), we provide evidence of a causal relation between evaluation consensus and investments. We follow this with a second experiment with 412 U.S. participants (Study 2), showing that evaluation criteria consensus increases participants’ propensity to view a firm as technologically competent and to expect others to favor investing in the firm. Analyses of longitudinal archival data on investment in artificial intelligence technology firms in the United States (Study 3a) and China (Study 3b) support the generalizability of our findings. By exploring the social-cognitive processes that link evaluation criteria consensus to investors’ decisions to invest in firms in nascent technology fields, this paper advances the scholarly understanding of the microfoundations of the institutionalization processes in new market sectors.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: This work was supported by Cornell University (Innovation, Entrepreneurship, and Technology Theme Research Grant, Jeffrey S. Lehman Fund for Scholarly Exchange with China).Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.1493. Collapse

Topics: evaluation criteria artificial intelligence database system decision making intellectual property

Methods: experiment hazard function archival research survey theory development

Does Investor Gender Matter for the Success of Female Entrepreneurs? Gender Homophily and the Stigma of Incompetence in Entrepreneurial Finance

2023 | Organization Science | Citations: 0

Authors: Snellman, Kaisa; Solal, Isabelle

Abstract: Female support of other women has been put forth as a remedy to the gender gap a ... Expand

Abstract: Female support of other women has been put forth as a remedy to the gender gap across many domains. Yet the potential costs associated with gender homophily are not well understood. We propose that homophily aggravates negative gender bias in evaluation. Focusing on the context of entrepreneurship, we theorize that future investors will discount a female entrepreneur’s competence as the key factor in an early-stage investment decision, when the investment comes from a female investor. Consequently, female-backed female entrepreneurs may struggle to raise additional funds from new investors. In a field study of venture-backed startups, we find that firms with female founders who received funding from female rather than male VCs are two times less likely to raise additional financing. We find no equivalent investor gender effect for male-founded firms. In an experimental study, we find that pitches by female-backed female entrepreneurs receive lower evaluations compared with all other pitches, and that this is driven by perceptions of entrepreneur competence. Our findings suggest that well-intentioned calls for women to invest in women not only place an undue burden on female investors, but may also undermine the long-term success of female entrepreneurs. Supplemental Material: The e-companion is available at https://doi.org/10.1287/orsc.2022.1594. Collapse

Topics: entrepreneurship social capital accounting organizational context missing data

Methods: experiment theory development chi squared test field study proportional hazards model

Context-Aware Marketing Attribution Based on Survival Analysis

2023 | International Conference on Business Informatics | Citations: 0

Authors: Züllig, Kilian; Napirata, Stefan; Zimmermann, Steffen

Abstract: Companies increasingly invest in digital marketing channels to promote their pr ... Expand

Abstract: Companies increasingly invest in digital marketing channels to promote their products and services. While the expenditures for each marketing channel are known, the contribution of marketing channels to a successful conversion, and therefore the value they generate, is unknown, but highly relevant for strategic decision-making. In this paper, we develop a novel, context-aware additive hazard marketing attribution (CAHMA) model based on survival analysis to address this problem. In addition to channel-specific, time-decaying effects of marketing on the users' conversion rate, we control for the effects of contextual features, such as the device or country from which users interact with marketing channels. Based on a prototypical implementation, we demonstrate the model's applicability and evaluate it on real-world data from the industry. We find that CAHMA outperforms other models in terms of accuracy while offering unique interpretability of the results and hence, providing deep insights for practitioners into the effects of marketing. Collapse

Topics: marketing management iOS Android mobile system MapReduce

Methods: machine learning survival analysis hazard function design artifact Markov chain Monte Carlo

Theories: probability theory

When Do Firms Add Digital Platforms? Organizational Status as an Enabler to Incumbents’ Platformization

2022 | International Conference on Information Systems | Citations: 0

Authors: Gao, Mengjin; Kim, Young-Kyu; KIm, Jieun; Lee, Dongwon; Um, Sungyong

Abstract: ... Expand

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Topics: digital platform organizational productivity database system digital transformation competitive advantage

Methods: longitudinal research proportional hazards model instrumental variables estimation experimental group hazard function

When Do Firms Trade Patents?

2022 | Organization Science | Citations: 0

Authors: Kwon, Jung H.; Park, Haemin Dennis; Deng, Shu

Abstract: Drawing on the Coase theorem, we consider a firm’s decision to transfer patent o ... Expand

Abstract: Drawing on the Coase theorem, we consider a firm’s decision to transfer patent ownership to another firm in the markets for innovation. We deem that the proximity of a patent’s technology structure to that of a firm’s patent portfolio will generally result in greater marginal productivity of the patent, leading to enhanced prospects for the firm’s economic return. We thus predict that firms are more likely to trade patents when the technology structure of a patent is closer to the technology stock of a potential buyer compared with that of its original assignee. However, such a relationship will be weaker when a potential buyer and the original assignee have greater product-market overlap or when the assignee has superior technological capability. We test these predictions by employing a dyad-level analysis of transactional decisions during the 1987–2016 period on 40,110 U.S. patents assigned to 57 major biopharmaceutical firms. Our study provides novel insights on factors that facilitate or inhibit patent trade in the markets for innovation. Collapse

Topics: database system innovation management research and development strategic management logistics management

Methods: regression analysis method robustness check proportional hazards model Compustat survival analysis

Theories: transaction cost economics

In Search of Inspiration: External Mobility and the Emergence of Technology Intrapreneurs

2022 | Organization Science | Citations: 0

Authors: Ng, Weiyi; Sherman, Eliot L.

Abstract: Recent scholarship has established several ways in which external hiring—versus ... Expand

Abstract: Recent scholarship has established several ways in which external hiring—versus filling a role with a comparable internal candidate—is detrimental to firms. Yet, organizational learning theory suggests that external hires benefit firms: by importing knowledge that is unavailable or obscured to insiders and applying it toward experimentation and risky recombination. Accordingly and consistent with studies of learning by hiring and innovation, we predict that external hires are at greater risk of intrapreneurship than internal hires. We test this prediction via a study of product managers in large technology companies. We use machine learning to operationalize intrapreneurship by comparing product manager job descriptions with the founding statements of venture-backed technology entrepreneurs. Our research design employs coarsened exact matching to balance pretreatment covariates between product managers who arrived at their roles internally versus externally. The results of our analysis indicate that externally hired product managers are substantially more intrapreneurial than observably equivalent internal hires. However, we also find that intrapreneurial product managers have a higher turnover rate, an effect that is primarily driven by external hires. This suggests that hiring for intrapreneurship may be a difficult strategy to sustain. Funding: The authors acknowledge financial support from London Business School, the National University of Singapore [Grant WBS R-313-000-128-133], and a dissertation grant from the Ewing Kauffman Foundation, Kansas City, Missouri. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.1530. Collapse

Topics: intrapreneurship LinkedIn IT career entrepreneurship online labor market

Methods: machine learning lasso regression nonparametric test logrank test experimental group

Theories: organizational learning theory

Green to Gone? Regional Institutional Logics and Firm Survival in Moral Markets

2022 | Organization Science | Citations: 0

Authors: Vedula, Siddharth; York, Jeffrey G.; Conger, Michael; Embry, Elizabeth

Abstract: A growing body of scholarship studies the emergence of moral markets—sectors off ... Expand

Abstract: A growing body of scholarship studies the emergence of moral markets—sectors offering market-based solutions to social and environmental issues. To date, researchers have largely focused on the drivers of firm entry into these values-laden sectors. However, we know comparatively little about postentry dynamics or the determinants of firm survival in moral markets. This study examines how regional institutional logics—spatially bound, socially constructed meaning systems that legitimize specific practices and goals within a community—shape firm survival in emerging moral markets. Using a unique panel of firms entering the first eight years of the U.S. green building supply industry, we find that (1) a regional market logic amplifies the impacts of market forces by increasing the positive impact of market adoption and the negative impact of localized competition on firm survival, (2) a regional proenvironmental logic dampens the impacts of adoption and competition on firm survival, and (3) institutional complexity—the co-occurrence of both market and proenvironmental logics in a region—negates the traditional advantages of de alio (diversifying incumbent) firms, creating an opportunity for de novo (entrepreneurial entrant) firms to compete more effectively. Our study integrates research on industry emergence, institutional logics, and firm survival to address important gaps in our knowledge regarding the evolution and growth of environmental entrepreneurship in moral markets. Funding: J. G. York thankfully acknowledges support from the Michael and Sherri Miske Faculty Research Award given by the Leeds School of Business, University of Colorado, Boulder. Collapse

Topics: entrepreneurship climate change innovation management competitive advantage database system

Methods: hazard function theory development descriptive statistic sensitivity analysis data transformation

Theories: dominant logic

Understanding the Role of Language Style of Government Response in E-participation: Evidence from a Citizen Inquiry Forum in China

2022 | Americas Conference on Information Systems | Citations: 0

Authors: Zhou, Mingxi; Liu, Luning; Feng, Yuqiang

Abstract: In response to the "Internet + Public Service" reformation, Chinese government ... Expand

Abstract: In response to the "Internet + Public Service" reformation, Chinese government organizations increasingly use e-participation platforms to interact with citizens, making how government respond to citizens' inquiry increasingly critical in citizen participation. This study is one of the few attempts to study the effect of language style of government response on citizen participation. Based on the language expectancy theory, we hypothesize that government response using appropriate formal and emotional language will change citizen e-participation behavior. Using text data from 11,194 users in a Chinese citizen inquiry forum, we found that emotional language has the positive impact on citizens' continuous participation significantly. And both emotional language and formal language can promote citizens' participation quality. Moreover, we identified the complementary effects of two languages on e-participation. This study has implications for both researchers and practitioners. Collapse

Topics: government system intrinsic motivation participatory design Python

Methods: survival analysis logistic regression descriptive statistic hazard function regression analysis method

Theories: expectancy theory of motivation