• Resource and Non-Resource Based Determinants of Academic Entrepreneurship

This dual-faceted program examines factors that may affect academic scientists' propensity to be engaged in a wide range of entrepreneurial activities. Some projects examine under what conditions resources relevant to engage in academic entrepreneurship, facilitate or hinder entrepreneurial activities in research universities. Other projects examine other characteristics e.g. ethnicity, country of origin status of academic scientists that may promote or inhibit entrepreneurial activity. Another project uses time as a resource and investigates how academic scientists' time allocations across typical academic work activities affect his or her propensity to be involved in academic entrepreneurship.

  • Product or Venture-Related Attributes at the Time of Founding and their Impact on Venture Performance and Survival

In this research program we investigate the resource-related determinants of new product success in new ventures in both the US and Chinese context. Other projects assess how the strategic orientation adopted at inception may affect venture survival in a variety of environmental contexts and over time. In the service sector, our research indicates that different dimensions of service quality affect new venture survival in different ways.

  • University Patenting Patterns and Impact of Multi-Level Institutional Contexts on the Effectiveness of University Technology Transfer and Commercialization

This project is concerned with how institutional contexts at the national and local level may differentially affect technology transfer and commercialization outcomes across European and U.S. universities.

  • The Intersection of the DCV and Entrepreneurship

Keywords: dynamic capabilities, entrepreneurs, SMEs, rule-breaking

At the core of the Dynamic Capabilities View is the sensing and seizing of opportunities by small sets of individual risk-takers. We explore several specific occurrences of dynamic capabilities – e.g., in how SMEs use them to adapt to ethics, green, and game-changing competitive changes in order to increase performance. We also consider such opportunistic changes through the lens of rule-breaking behavior. The results of these studies – using surveys, experiments, and computer simulation – will provide new insights into the ways that entrepreneurial actions affect multiple outcomes of interest to firms, policy-makers, and society.

  • Strategic Planning and Initial Orientation

Keywords: strategic planning, strategic orientation, contingencies

In order to make effective and efficient decisions, firm managers must have a plan and an orientation relevant to competing in hostile environments. Strategic planning, as influenced by its bureaucratization and its resource base, has significant effects on a firm's innovation and profitability. Strategic orientation, as influenced by competitive context and time, has significant effects on survival. Implications for start-up and incumbent firms, especially SMEs, include prescriptions for which specific orientations and planning implementation techniques to use under given conditions.

  • The Legitimization of Entrepreneurship Theory

Keywords: entrepreneurship, scientific legitimacy, problems and solutions

Through literature reviews and critical analysis, informed opinions are expressed in essays that assess the state of legitimacy of the entrepreneurship field, focusing on finding reasons for any lack of progress toward scientific legitimacy of the discipline, and recommending possible solutions. We focus on the role played by other business fields, and by a vicious cycle of incentives currently existing in the field.

  • Boosting Innovation through International Alliance Network Embeddedness

Project Keywords: strategic alliance; network centrality; structure hole.

Innovation has been recognized as a major source of competitive advantage. Nonetheless, innovation is lacking in many firms especially from less developed countries. How could firms from emerging economies improve their innovation? To answer this critical question, the current study builds on the resource dependence perspective and network theory with a particular focus on international alliance portfolio to argue that local firms from emerging economies could take advantage of their alliance portfolios through two network structural characteristics, namely, structural hole positions and network centrality. Using longitudinal data collected from 81 publicly traded firms across five years in China, the results demonstrate that a Chinese local firm's innovation increases when it occupies more structural hole positions but decreases when its network centrality increases. Such relationships are further contingent upon the local firm's alliance portfolio size and the resource commitment made by the alliance portfolio to the local firm.

  • Entrepreneurial Prospect and Equity Ratchet Incentive in Emerging Economies

Keywords: emerging economies, private equity, equity ratchet

How do private equity (included venture capital) investors implement complex financial contracts to monitor and incentivize entrepreneurs in emerging economies? How do entrepreneurs in these economies adopt these sophisticated Western-style governance and inventive practices? Using five in-depth case studies in China from 2002 to 2009, we find that the equity ratchet as a performance-based incentive instrument can be a tool for private equity investors to incent local entrepreneurs in an enviro

nment characterized by institutional voids. Instead of as a "coach" in professionalizing venture companies in developed economies, private equity investor need train entrepreneurs in emerging economies, emphasizing ownership's incentive function as the ex ante mechanism to overcome contractual hazards. Apply prospect theory in this study, we find that the different functions of equity ratchets in the different stages of adoption in emerging economies.

  • The Strategic Assembly of Inward Private Equity and Outward Chinese Multinational Companies

Keywords: Private equity, internationalization, inward-outward linkage, outward venture

Private equity is impacting global economies and competitive landscapes of multinational companies (MNCs). In this pioneer research, we first find an important new pattern of global inter-firm connections: the inward private equity investment is likely to promote Chinese firms' outward venture. Under this inward-outward linkage, having received investment from private equity, Chinese emerging MNCs are likely to restructure board, rebuild the top management team, reconfiguring resource, reframe the industry structure and alter competitive dynamics, thus, modify their strategies in outward ventures, such as accelerating the internationalization speed, locating more outward ventures in advanced economies, and choosing more complex entry modes especially cross-border M&As. We call this kind of evolving internationalization of the emerging MNCs as a "morphing" process, and analyze such process with seven in-depth case studies, including Lenovo, Zoomlion, Geely, Alibaba.com, Huawei, NVC lighting, and BYD.

  • Ambiguity and Ambidexterity in R&D

Keywords: alliance ambidexterity; exploration and exploitation; innovation

The role of ambiguity and ambidexterity in boosting firm innovation has not received sufficient attention in the exploration-exploitation literature. In this project, we study how ambiguity in R&D and ambidexterity in alliance improves a focal firm's innovative performance. By decomposing alliance ambidexterity into balanced and combined dimensions respectively, we untangle the different underlying mechanisms for these two dimensions' effect on a focal firm's innovation. Balanced alliance ambidexterity as the absolute difference between exploration and exploitation provides the firm with a moderate level of knowledge diversity that facilitates innovation. It also enables the firm to avoid the "failure trap" and the "competence trap". This combined alliance ambidexterity as the multiplication of exploration and exploitation builds knowledge complementarity between a firm's technological and functional knowledge that enhances innovation. A synthesizing effect of exploratory learning and exploitative learning also helps the firm fully develop its absorptive capacity. Empirical tests based on a sample of 352 firm-year observations from China's information and electronic manufacturing industries support our hypotheses. We will use the case of Huawai, the most innovative firm in China, to further develop our theoretical framework of Ambiguity in R&D.

  • The Influence of Corporate Investors on the Development and Performance of New Ventures

keywords: corporate venture capital, innovation, complementary assets

Description: New ventures face a tradeoff in considering corporate venture capital (CVC) funding. Corporate investors can provide valuable complementary resources that enhance the technology commercialization of new ventures. However, tight links with a particular corporate investor can constrain new ventures and their flexibility in accessing diverse resources from a variety of sources. Taking this tradeoff into account, I explore how corporate investors influence strategic outcomes and performance of new ventures. Using a sample of computer, semiconductor, and wireless ventures, I find that (1) CVC-funded ventures are generally more innovative compared to new ventures funded solely by independent venture capitalists (IVCs), particularly if their corporate investors are relatively more reputable compared with their IVC co-investors, and (2) CVC-funded ventures outperform new ventures funded solely by IVCs if they require specialized complementary assets and operate in uncertain environments.

The Likelihood of VCs Becoming Board Members in Entrepreneurial Ventures

keywords: venture capital, board rights, corporate governance

I explore factors determining board membership of venture capitalists (VCs) in privately-held entrepreneurial ventures. After controlling for the amount of investment and selection effect on the likelihood of investment tie formation using a two-sided matching technique, I find that board rights are determined by the bargaining process between VCs and new ventures. Specifically, VCs are more likely to become board members in new ventures if they are highly reputable in facilitating their prior new venture investees to become successful, whereas VCs are less likely to gain board rights in new ventures having greater bargain power by possessing superior innovation and marketing capabilities. I also find that board rights are determined by transaction costs in governing the new ventures. Specifically, VCs are more likely to become board members when they are co-located with the new ventures, whereas as compared with independent VCs, corporate VCs are less likely to become board members due to potential conflicts of interest.

  • The Influence of Affect and Cognition on Venture Investment Decisions

keywords: venture investment decisions, affect, cognition, dual process perspective

We explore how affect and cognition of venture investors influence their portfolio concentration. We argue that investors with high positive affectivity or high need for cognition engage in heuristics-based decision making and concentrate their portfolio, whereas investors with high negative affectivity or low need for cognition engage in analytics-based decision making and diversify their portfolio. Moreover, because investors tend to differ in their propensity to rely on affect or cognition, the relationship between affect and investment concentration is moderated by investors' propensities to rely on affect or cognition such that the relationship is stronger for those relying on affect and weaker for those relying on cognition.

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