Strategy Magazine

The Role of Family Influence in Firms’ Strategic Responses to Threat of Imitation

This study highlighted that family-influenced firms are less rigid in their responses to the threat of imitation. The authors only focused on situations where families have a substantial ownership stake and managerial presence in the firms that allows the family to impact strategic decisions without unilateral control. One key insight is that family-influenced firms, it is more difficult to maintain current R&D investment levels in a threatening environment, while it is easier to encourage internationalization with its more immediate results.

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Partnership or self-reliance entry modes: Large and small technology-based enterprises’ strategies in overseas markets

International Journal of Entrepreneurship | Volume 6 I Issue 4
Lee Li | York University
Gongming Qian | The Chinese University of Hong Kong

Professor Li and Professor Qian researched small and medium-sized technology firms and their choices between partnership and self-reliance entry modes. They research indicated that violent market dynamics drive larger firms to self reliance and small to medium-sized firms to seek partnerships. When the promotional hurdle is significant, all firms prefer partnerships over self-reliance.

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Institutions and entrepreneurship develop in Russia: A comparative perspective

Journal of Business Venturing | Volume 23 Issue 6
Ruta Aidis| University College London
Saul Estrin | London School of Economics
Tomasz Mickiewicz | University College London

The weakness of institutions in Russia is stifling entrepreneurial activity. It appears that informal networks are attempting to compensate for the dysfunctional institution, but they are not able to entirely offset these deficiencies. For example, in most markets networks are complimenting the markets, not trying to substitute for them. In addition, Russia is a very hostile business environment, which is a stark contrast to the state-planned economy, and the data indicates that the current business practitioners are using networking to exert control over others, not in an effort to grow new business ideas.

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Judging a business by its cover: An institutional perspective on new ventures and the business plan

Journal of Business Venturing | Volume 24 Issue 1
Tomas Karlsson | Jönköping International Business School, and Wilfrid Laurier University
Benson Honig | Wilfrid Laurier University

This study concluded entrepreneurs use business plans to gain legitimacy from external actors, appear structured, well planned and established. The entrepreneurs used the business plans loosely and rarely referred to them or planned to update them based on changing economics. The authors indicate that poor performance may be a result of weak business plans and poor execution by the entrepreneurs. One surprising conclusion was that business plans plan a minor role in the decision-making process by bankers. Overall none of the entrepreneurs allowed their plans to significantly influence their business operations.

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Founding Team and Start-up Competitive Advantage

This study indicates that the resources of and the trust gained by the entrepreneur will enhance the commitment of the founding team members and drive a competitive advantage within the firm. This is clearly illustrated in technology-based start-ups because it is the network of the founding partner and trust he or she establishes which creates the environment where investors and employees believe in the concept and are willing to commit to the levels necessary to drive successful execution.

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