Browsing by Subject "AoHP: Strategic and entrepreneurial praxis"

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  • Fredström, Ashkan; Peltonen, Juhana; Wincent, Joakim (2020-02-21)
    Developing the concept of institutional incongruence and employing panel data from 60 countries, we outline an alternative view of the informal economy and the effects of regulative institutions on entrepreneurship productivity. We find evidence that the informal economy's size is, largely, negatively associated with entrepreneurship productivity, and that in the presence of a large informal economy, governmental efforts to improve governance quality can be counterproductive. Our results suggest policy interventions aimed at changing institutions to practice formal entrepreneurship should be implemented cautiously to avoid inducing institutional incongruence.
  • Sjödin, David; Parida, Vinit; Kohtamäki, Marko; Wincent, Joakim (2020-03-13)
    In this paper, we explore how manufacturing firms and their customers co-create digital service innovations in an attempt to address the digitalization paradox. We present empirical insights from a case study of four manufacturers and their customer relationships. The results suggest that value co-creation in digital servitization is best managed through an agile micro-service innovation approach. Such an approach requires incremental micro-service investments, sprint-based micro-service development, and micro-service learning by doing to ensure customized and scalable digital service offerings. The proposed agile co-creation model provides insight into the phases, activities, and organizational principles of a micro-service innovation approach. Relational teams that pool knowledge from providers’ and customers’ strategic, technological, and operational areas are crucial to ensure successful cooperation and governance for agile co-creation. This paper offers insight into how companies engage in agile co-creation processes, with important recommendations for innovation in manufacturing firms in the era of digitalization.
  • Haefner, Naomi; Wincent, Joakim; Parida, Vinit; Gassman, Oliver (2020-10-18)
    Artificial Intelligence (AI) reshapes companies and how innovation management is organized. Consistent with rapid technological development and the replacement of human organization, AI may indeed compel management to rethink a company's entire innovation process. In response, we review and explore the implications for future innovation management. Using ideas from the Carnegie School and the behavioral theory of the firm, we review the implications for innovation management of AI technologies and machine learning-based AI systems. We outline a framework showing the extent to which AI can replace humans and explain what is important to consider in making the transformation to the digital organization of innovation. We conclude our study by exploring directions for future research.
  • Galkina, Tamara; Yang, Man (2020-08-24)
    We explore the internationalization of Slush, an entrepreneurship-promoting NGO from Finland that expanded to Japan, China, and Singapore. We incorporate the social movement theory that allows revealing special mechanisms of NGOs’ internationalization. We show, first, that international opportunity development of internationalizing NGOs is triggered by the shared dissatisfaction with societal conditions. Second, their collective resource mobilization enables networks and learning in foreign markets. Third, internationalizing NGOs overcome internationalization liabilities through building their social identities. We also offer a model of NGO internationalization that incorporates the social movement theory. Overall, our study broadens internationalization research by bringing a non-business theory into it.
  • Linde, Lina; Sjödin, David; Parida, Vinit; Wincent, Joakim (2021-02-01)
    Firms are faced with increased dynamism due to rapid technological development, digitalization, and sustainability requirements, creating novel opportunities for ecosystem innovation. This is particularly prevalent in smart city contexts where initiatives concerning, for example, energy efficient buildings and smart energy grids drive new kinds of ecosystem formation. Orchestrating emerging innovation ecosystems can offer a path to sustained competitive advantage for ecosystem leaders. Yet, it calls for the development of new capabilities to sense, seize, and reconfigure digitalization opportunities in a highly dynamic ecosystem environment. Yet, prior research lacks insights into the dynamic capabilities and routines required for ecosystem innovation. Therefore, this study investigates how firms can develop dynamic capabilities to orchestrate ecosystem innovation and, thus, gain from it. Through a multiple case study of smart city initiatives, we offer insights into the specific micro-foundations or sub-routines underlying the ecosystem leader's sensing, seizing, and reconfiguring capabilities, which are necessary to orchestrate ecosystem innovation. We develop a capability-based framework demonstrating three orchestration mechanisms – namely, configuring ecosystem partnerships, value proposition deployment, and governing ecosystem alignment. Our findings carry implications for the literature on innovation ecosystems and dynamic capabilities, as well as for managers.
  • Shepherd, Dean A.; Parida, Vinit; Wincent, Joakim (2020-02-13)
    Research has focused on the role of entrepreneurial action in alleviating poverty. However, there is a gap between individuals’ short-term outcomes from entrepreneurship overcoming immediate resource concerns and the large-scale impact of entrepreneurship on institutional and system change. Therefore, in this study, we explore entrepreneurs’ beliefs about how entrepreneurial action can alleviate poverty. To do so, we conducted a qualitative study of entrepreneurs of businesses located in Indian slums and identified the impact of expectations, role models, and the subjective value of their children’s education in attempts to alleviate poverty.
  • Anokhin, Sergey; Chistyakova, Natalia; Antonova, Irina; Spitsina, Lyubov; Wincent, Joakim; Parida, Vinit (2021-01-23)
    Employing a panel setting of 88 counties in the State of Ohio over the five-year period ending in 2006, this study aims to investigate the applicability of the knowledge spillover theory of entrepreneurship in explaining the relationships between flagship enterprises, entrepreneurial clusters, and business entry rates. The study confirms the overall positive relationship between flagship enterprises and startup rates, and the negative relationship between entrepreneurial clusters and startup rates. It further demonstrates that the effect of clusters is moderated by local unemployment rates so that higher rates of unemployment weaken the negative impact of entrepreneurial clusters on startup rates. Based on the evidence collected, policy makers should increase support for flagship enterprises in their regions, and would-be business owners should consider locating their ventures in proximity to flagship companies.
  • Galkina, Tamara; Atkova, Irina; Yang, Man (2021-09-23)
    Research Summary This article examines previously neglected tensions between causation and effectuation in the process of new venture creation. We studied 41 episodes of new venture creation by entrepreneurs in Finland and Denmark, who we followed applying the diary method. We reveal tense relations between the respective causation and effectuation principles at multiple levels, and identify the corresponding mechanisms for their resolution, which, in turn, lead to the synergy. This study enriches the effectuation research by offering a dynamic perspective on causation-effectuation interplay and categorizing three modes of their interaction, that is, separation, hybrid synergy, and tensions. Managerial Summary Venture creation is a complex process that involves different decision-making logics. While combining the goal-driven logic of causation and non-goal driven logic of effectuation is essential for the success of a start-up, the road to their synergy can be paved with different tensions. Our study of 41 episodes of new venture creation by entrepreneurs in Finland and Denmark shows that these tensions can occur at the individual, organizational and inter-organizational levels. We also show four different mechanisms of how entrepreneurs can overcome these tensions within their ventures and in relations with other stakeholders.
  • Sjödin, David; Parida, Vinit; Palmié, Maximilian; Wincent, Joakim (2021-06-12)
    Artificial intelligence (AI) is predicted to radically transform the ways manufacturing firms create, deliver, and capture value. However, many manufacturers struggle to successfully assimilate AI capabilities into their business models and operations at scale. In this paper, we explore how manufacturing firms can develop AI capabilities and innovate their business models to scale AI in digital servitization. We present empirical insights from a case study of six leading manufacturers engaged in AI. The findings reveal three sets of critical AI capabilities: data pipeline, algorithm development, and AI democratization. To scale these capabilities, firms need to innovate their business models by focusing on agile customer co-creation, data-driven delivery operations, and scalable ecosystem integration. We combine these insights into a co-evolutionary framework for scaling AI through business model innovation underscoring the mechanisms and feedback loops. We offer insights into how manufacturers can scale AI, with important implications for management.
  • Sorsa, Virpi; Vaara, Eero (2020-03-12)
    This study examines how pluralistic organizations confronting fundamental differences in values can proceed with strategic change. By drawing on a longitudinal case analysis of strategic change in a Nordic city organization, we show how the proponents and challengers play a “rhetorical game” in which they simultaneously promote their own value-based interests and ideas and seek ways to enable change. In particular, we identify a pattern in which the discussion moved from initial contestation through gradual convergence to increasing agreement. In addition, we elaborate on four rhetorical practices used in this rhetorical game: voicing own arguments, appropriation of others’ arguments, consensus argumentation, and collective we argumentation. By so doing, our study contributes to research on strategic change in pluralistic organizations by offering a nuanced account of the use of rhetoric when moving from contestation to convergence and partial agreement. Furthermore, by detailing specific types of rhetorical practices that play a crucial role in strategy making, our study advances research on the role of rhetoric in strategy process and practice research more generally.
  • Blohm, Ivo; Antretter, Torben; Sirén, Charlotta; Grichnik, Dietmar; Wincent, Joakim (2020-09-14)
    Investors increasingly use machine learning (ML) algorithms to support their early stage investment decisions. However, it remains unclear if algorithms can make better investment decisions and if so, why. Building on behavioral decision theory, our study compares the investment returns of an algorithm with those of 255 business angels (BAs) investing via an angel investment platform. We explore the influence of human biases and experience on BAs’ returns and find that investors only outperformed the algorithm when they had extensive investment experience and managed to suppress their cognitive biases. These results offer novel insights into the role of cognitive limitations, experience, and the use of algorithms in early stage investing.
  • Penttilä, Kaisa Riikka; Ravald, Annika; Dahl, Johanna; Björk, Peter (2020-09-22)
    Disclosing the root cause of managerial action in environments undergoing change, is intrinsically linked to understanding how managers perceive both themselves, and their focal network including the broader surrounding environment. Despite an increased research interest into the interlink between sensemaking and strategizing, empirical evidence on how different limitations manifest in the sensemaking of individual managers in specific contexts is scarce. This study focuses on individual level sensemaking in a transforming business ecosystem as a microfoundation of strategizing. It explores the diverseness of managerial sensemaking by comparing noticed cues, moderating frames and sensemaking outcomes as reflected in different strategizing options. The empirical data derive from 52 semi-structured interviews with top managers in a local business ecosystem. Based on our analysis, we develop an empirically grounded model that unwraps the frames that influence how managers perceive and interpret the changing environment and the implications for their business. Our study provides important empirical corroboration to extant research on the cognitive microfoundations of strategizing in networked environments and adds detail to the underlying sensemaking mechanisms at play. The results highlight the local context and the identity embeddedness of focal actors herein, as factors that significantly influence managerial sensemaking in transforming business ecosystem contexts.
  • Burström, Thommie; Harri, Jussi; Wilson, Timothy. L. (2018-03)
    This paper studies the dynamics of network development in early phases of venture development. Seven ventures were studied through interviews and visualization techniques. An equivocal three-phase process was studied — conceptualization, early foundation and early establishment. This paper defines network equivocality, draw on multiplexity theory and contributes by fine-tuning the concept of tie formation. The paper presents a conceptual model where the dynamics behind network development in early phases of venture development is explained. It is proposed that each phase of development is divided by knowledge boundaries. As ventures mature, they pass knowledge boundaries, and this passage triggers network transformation. Thus, the roles of both nascent firms and of multiplex network contacts change, and consequently tie formation also change. Three distinct tie formations are identified; esoteric, enlarged and exoteric.
  • Parida, Vinit; Burström, Thommie; Visnjic, Ivanka; Wincent, Joakim (2019-01-16)
    Making the transition to a circular economy is an important goal for society and individual companies, particularly in resource-intensive manufacturing industries. Yet the complexity and interdependencies of such an undertaking mean that no single company can achieve it alone and ecosystem-wide orchestration is necessary. Based on a qualitative study of six large manufacturing companies (ecosystem orchestrators) and their ecosystem partners, we develop a process model that describes the scarcely understood process of ecosystem transformation toward a circular economy paradigm. We provide evidence that ecosystem orchestrators achieve the transition toward a circular economy in two stages: 1) ecosystem readiness assessment and 2) ecosystem transformation. In each stage, specific and complementary mechanisms are deployed. The article elaborates on ecosystem transformation mechanisms and their purpose, use, and interdependencies in moving toward a circular economy paradigm.
  • Antretter, Torben; Sirén, Charlotta; Grichnik, Dietmar; Wincent, Joakim (2020-08-29)
    This paper investigates the performance effects of business angel portfolio industry diversification. Using a unique bi-annual panel dataset of 142 members of a professional angel investment platform and their portfolio returns between 2013 and 2017, we consider the costs and benefits of diversifying investments into various industries. Drawing upon theoretical arguments about distant search, we theorize and find a nonlinear (S-shaped) relationship between portfolio industry diversification and performance. Further, we pay specific attention to a proposed overdiversification effect that takes place at high levels of portfolio industry diversification and show that this effect is moderated by individuals' access to industry knowledge through their co-investment networks. For business angels who have a central position within a diverse network of industry specialists, the overdiversification effect is less pronounced.
  • Chatterjee, Ira; Cornelissen, Joep; Wincent, Joakim (2021-01)
    Prior research on social entrepreneurship highlights the role and importance of values in managing change, yet few studies examine processes of managing values to achieve social change. Through a longitudinal case study of the social organization Barefoot College, we explored how a social entrepreneur navigated conflicting values to address issues of gender inequality and effect social change. We found that the social entrepreneur engaged in values-related work, purposively interpreting and enacting values-laden practices to bring about a quiet transformation within the community. In our resulting value augmentation model, we capture a process that anchors and amplifies social values, rather than replaces them, and with this model, we develop theory on values work and sustainable social change.
  • Saarikko, Ted; Jonsson, Katrin; Burström, Thommie (2018)
    Purpose Faced with environments rife with technological uncertainties, software platforms have gained interest as enablers of innovative businesses and development processes. While extant research has focused on mature platforms, the authors know less about the early phases in a platform’s life cycle. Drawing inspiration from the effectual perspective on entrepreneurship, the purpose of this paper is to further the understanding of how software platforms are established. Design/methodology/approach The authors develop a framework that describes four types of entrepreneurial awareness and then apply it to a qualitative case study of a platform that has emerged from the initial “creation” phase and is now in a period of rapid growth. Findings The study indicates that successful establishment of a software platform depends upon the provider’s ability to integrate business acumen with technical proficiency and leverage these combined skills to ensure short-term viability and long-term relevance in the market. Research limitations/implications This paper contributes to literature on platform strategy, which has previously focused on mature platforms, by addressing entrepreneurial behavior during a software platform’s establishment. As it is based on a single qualitative study, additional studies of different platforms are needed to verify the results. Originality/value The paper highlights the dependence of software platform establishment on the ability to enact both explorative and exploitative activity patterns, and embrace both strategic foresight and systemic insight cognitive patterns. The combined patterns of activity and cognition form four types of awareness, pertaining to markets, resources, technology and contexts.
  • Johansson, Jeaneth; Malmström, Malin; Wincent, Joakim (2021-01-06)
    Researchers question the impact of governmental venture capitalists (GVC) compared to private venture capitalists (PVC), but we know little about why this difference occurs and if this criticism is justified. We observed a group of GVCs and developed a new model that describes the way that GVCs process signals pre- and post-decisions. Certain macro level factors severely undermine micro level performance, causing GVCs to financially underperform with respect to PVCs. This helped us to understand that GVCs do not make investment decisions in the same way as PVCs, and what undermines the performance of GVCs’ decision-making processes. The main goals of GVCs are to promote investments in responsible SMEs, mobilizing societal impact. We discuss that the criticism of GVC needs to be more nuanced, as they have a different role than PVC in the financial system as providers of sustainable investments in responsible SMEs
  • Tukiainen, Taina; Burström, Thommie; Lindell, Martin (2019-06-26)
    Technology startups build strategies in order to survive within the framework of business ecosystems. However, the knowledge required to make such strategies effective is scarce. This article poses the question: “How do small technology startups strategize within and between business ecosystems?” Based on an explorative qualitative study, this article defines and presents a dynamic strategic framework of three strategies employed by technology startups. Some startups choose to act within one defined business ecosystem, most startups use a multi-ecosystem strategy to act between and draw benefits from many business ecosystems, and the rest act as ecosystem creators that challenge the logics of existing ecosystems.
  • Burström, Thommie; Wilson, Timothy L. (2018)
    Purpose The premise of this paper is that tension exists among participants and parties engaged in projects. The uniqueness of development virtually assures this. The purpose of this paper is to propose that tension is a product of the precursors of complexity, uncertainty and equivocality, and an attempt is made to characterize tension as it arises in projects – its genesis and its nature. Design/methodology/approach An in-depth case study was conducted in a manner in which the contextually sensitive empirical researches for which Nordic studies are known. Within discussions on the strategy, decision making, intra- and inter-project interdependencies and managing across development sites associated with a flagship project, 77 statements concerning tension were identified for analysis. Through a literature review, 12 tension-driving factors were identified. These factors were used as base for analysis. Findings These statements were analyzed for content to produce a model associating tension with its precursors and the literature on tension. It is found that due to innovation turbulence, tension-driving factors are cascaded in and around organization(s). Tension is manifested in various ways for different stakeholders and tension management is performed through cognitive and emotional responses. The texture of tension is characterized by fluidity, multiplicity and parallelism. Research limitations/implications Case studies can of course not be generalized; they are valuable, however, in indicating important observations for further studies. Practical implications A contribution is made to management theory where knowledge about project context is seen as essential in order to understand best practices for project execution and effectiveness. Originality/value Although common, even virtually assured in projects, tension tends to be neglected in successful management. This study associates the genesis of tension through the underlying contributions of complexity, uncertainty and equivocality. It is believed to be the first study of its type.