Asian Journal of Innovation and Policy

Asian Society for Innovation and Policy (아시아기술혁신학회)
권호 표지
DOI QR코드

DOI QR Code

Entrepreneurial Learning and Indian Tech Startup Survival: An Empirical Investigation

  • Krishna, HS (Department of Management Studies, Indian Institute of Science)
  • Received : 2017.08.27
  • Accepted : 2018.02.27
  • Published : 2018.04.30
Download PDF
⟨ Previous Next ⟩

Abstract

This paper investigates the linkage between the mode of transformation of entrepreneurial learning into outcomes and the subsequent impact of these learning outcomes in enhancing the survival of high-tech startups in India. The study uses data from 45 high-tech startups headquartered across different locations in India for the purpose of analysis. Survival Analysis of the data is conducted to determine which mode of learning transformation and what type of en trepreneurial decision making preference have a significant influence on the survival of Indian high-tech startups and to what extent do they impact their survival. The results indicate that entrepreneur's prior startup experience, explorative mode of learning transformation, causal decision making of the entrepreneur and availability of funding for the startup as the key factors that reduce the time to survival of Indian high-tech startups. They also provide key insights on how these factors impact the startup survival in this region.

Keywords

References

  1. Aalen, O.O., Borgan, O. and Gjessing, H.K. (2008) Survival and Event History Analysis: A Process Point of View, New York: Springer-Verlag, .
  2. Akaike, H. (1974) A new look at the statistical model identification, IEEE Transaction on Automatic Control AC-19, 716-723.
  3. Allison, P.D. (1995) Survival Analysis Using $SAS^{(R)}$ : A Practical Guide, Cary, NC: SAS Institute Inc.
  4. Argyris, C. and Schon, D.A. (1978) Organizational Learning: A Theory of Action Perspective, Reading, MA: Addison-Wesley.
  5. Audretsch, D.B. and Lehmann, E.E. (2004) Financing high-tech growth: the role of banks and venture capitalists, Schmalenbach Business Review, 56, 340-357. https://doi.org/10.1007/BF03396700
  6. Balasubramanian, N. (2011) New plant venture performance differences among incumbent, diversifying, and entrepreneurial firms: the impact of industry learning intensity, Management Science, 57, 549-565. https://doi.org/10.1287/mnsc.1100.1294
  7. Boeker, W. (1988) Strategic change: the effects of founding and history, Academy of Management Journal, 32(3), 489-515. https://doi.org/10.2307/256432
  8. Brettel, M., Mauer, R., Engelen, A. and Kupper, D. (2012) Corporate effectuation: entrepreneurial action and its impact on R&D project performance, Journal of Business Venturing, 27, 167-184. https://doi.org/10.1016/j.jbusvent.2011.01.001
  9. Brush, C.G., Green, P.G. and Hart, M.M. (2001) From initial idea to unique advantage: the entrepreneurial challenge of constructing a resource base, Academy of Management Executive, 15, 64-78.
  10. Chaston, I., Badger, B. and Sadler-Smith, E. (2001) Organizational learning: an empirical assessment of process in small U.K. manufacturing firms, Journal of Small Business Management, 39, 139-151. https://doi.org/10.1111/1540-627X.00013
  11. Chatterjee, D. (2010) Studies on some aspects of liquidity of stocks: limit order executions in the Indian stock market, Ph.D thesis, Department of Management Studies, Indian Institute of Science.
  12. Cohen, W.M., Levinthal, D.A. (1990) Absorptive capacity: a new perspective on learning and innovation, Administrative Science Quarterly, 35, 128-152. https://doi.org/10.2307/2393553
  13. Cope, J. (2003) Entrepreneurial learning and critical reflection: discontinuous events as triggers for higher-level learning, Management Learning, 34, 429-450. https://doi.org/10.1177/1350507603039067
  14. Covin, J.G., Green, K.M. and Slevin, D.P. (2006) Strategic process effects on the entrepreneurial orientation-sales growth rate relationship, Entrepreneurship Theory and Practice, 30, 57-81. https://doi.org/10.1111/j.1540-6520.2006.00110.x
  15. Covin, J.G., Garrett, R.P., Gupta, J.P., Kuratko, D.F. and Shepherd, D.A. (2016) The Interdependence of Planning and Learning Among Internal Corporate Ventures, Entrepreneurship Theory and Practice.
  16. Cox, D.R. (1972) Regression models and life-tables with discussion, Journal of the Royal Statistical Society: Series B, 34, 187-220
  17. Douglas, D. (2005) The human complexities of entrepreneurial decision making: a grounded case considered, International Journal of Entrepreneurial Behaviour and Research, 11(6), 422-435. https://doi.org/10.1108/13552550510625159
  18. Ensley, M.D., Pearson, A. and Pearce, C.L. (2003) Top management team process, shared leadership and new venture performance: a theoretical model and research agenda, Human Resource Management Review, 13, 329-346. https://doi.org/10.1016/S1053-4822(03)00020-2
  19. Furdas, M. and Kohn, K. (2011) Why is startup survival lower among necessity entrepreneurs? a decomposition approach, Preliminary Version, April 2011.
  20. Gabrielsson, J. and Politis, D. (2011) Career motives and entrepreneurial decision- making: examining preferences for causal and effectual logics in the early stage of new ventures, Small Business Economics, 36, 281-298. https://doi.org/10.1007/s11187-009-9217-3
  21. Haber, S. and Reichel, A. (2007) The cumulative nature of the entrepreneurial process: the contribution of human capital, planning and environment resources to small venture performance, Journal of Business Venturing 22(1), 119-145. https://doi.org/10.1016/j.jbusvent.2005.09.005
  22. Huber, G.P. (1991) Organizational learning: the contributing processes and the literatures, Organization Science, 2, 88-115. https://doi.org/10.1287/orsc.2.1.88
  23. Kim, C.H. and Ko, C.R. (2014) Success and failure factors of technology commer- cialization: a Korean case, Asian Journal of Innovation and Policy, 3(1), 25-49. https://doi.org/10.7545/ajip.2014.3.1.025
  24. Kim, Y.J. and Shin, S.J. (2017) What causes technology commercialization to succeed or fail after transfer from public research organizations, Asian Journal of Innovation and Policy, 6(1), 23-44. https://doi.org/10.7545/ajip.2017.6.1.023
  25. Kirchhoff, B.A. (1994) Entrepreneurship and Dynamic Capitalism: The Economics of Business Firm Formation and Growth, Westport, Conn: Praeger.
  26. Kirchhoff, B.A. and Spencer, A. (2008) New high tech firm contributions to economic growth, Proceedings of International Council for Small Business World Conference, Halifax, Canada: Nova Scotia.
  27. Klein, J.P. and Moeschberger, M.L. (1997) Survival Analysis, Techniques for Censored and Truncated Data, New York: Springer-Verlag, 502.
  28. Kolb, D.A. (1984) Experiential Learning: Experience as the Source of Learning and Development, Englewood Cliffs, NJ: Prentice Hall.
  29. Lant, T.K. and Mezias, S.J. (1990) Managing discontinuous change: a simulation study of organizational learning and entrepreneurship, Strategic Management Journal, 11, 147-179.
  30. Lamont, L.M. (1972) What entrepreneurs learn from experience, Journal of Small Business Management, 10, 36-41.
  31. Levesque, M., Minniti, M. and Shepherd, D. (2009) Entrepreneurs' decisions on timing of entry: learning from participation and from the experiences of others, Entrepreneurship Theory and Practice, 33, 547-570. https://doi.org/10.1111/j.1540-6520.2009.00303.x
  32. Levinthal, D.A. and March, J. (1993) The myopia of learning, Strategic Management Journal, 14, 95-112. https://doi.org/10.1002/smj.4250141009
  33. March, J.G. (1991) Exploration and exploitation in organizational learning, Organization Science, 2(1), 71-87. https://doi.org/10.1287/orsc.2.1.71
  34. Markman, G.D. and Baron, R.A. (2003) Person-entrepreneurship fit: why some people are more successful as entrepreneurs than others, Human Resource Management Review, 13, 281-301. https://doi.org/10.1016/S1053-4822(03)00018-4
  35. McGrath, R.G. (2001) Exploratory learning, innovative capacity, and managerial oversight, Academy of Management Journal, 44, 118-131.
  36. Mian, S., Lamine, W. and Fayolle, A. (2016) Technology business incubation: an overview of the state of knowledge, Technovation, 50, 1-12.
  37. Minniti, M. and Bygrave, W. (2001) A dynamic model of entrepreneurial learning, Entrepreneurship Theory and Practice, 25(3), 5-16.
  38. Mintzberg, H., Waters, J.A. (1982) Tracking strategy in an entrepreneurial firm. Academy of Management Journal, 25(3), 465-499. https://doi.org/10.2307/256075
  39. Politis, D. (2008) Does prior start-up experience matter for entrepreneurs' learning?, Journal of Small Business and Enterprise Development, 15, 472-489. https://doi.org/10.1108/14626000810892292
  40. Politis, D. and Gabrielsson, J. (2005) Exploring the role of experience in the process of entrepreneurial learning, Working Paper Series, Lund Institute of Economic Research, 2005/1.
  41. Rae, D. and Carswell, M. (2001) Towards a conceptual understanding of entre- preneurial learning, Journal of Small Business and Enterprise Development, 8, 150-158. https://doi.org/10.1108/EUM0000000006816
  42. Rae, D. (2005) Entrepreneurial learning: a narrative-based conceptual model, Journal of Small Business and Enterprise Development, 12, 323-335. https://doi.org/10.1108/14626000510612259
  43. Rerup, C. (2005) Learning from past experience: footnotes on mindfulness and habitual entrepreneurship, Scandinavian Journal of Management, 21, 451-72. https://doi.org/10.1016/j.scaman.2005.09.010
  44. Reuber, R.A., Dyke, L.S. and Fischer, E.M. (1990) Experiential acquired knowledge and entrepreneurial venture success, Academy of Management Best Paper Proceedings, 69-73.
  45. Reuber, R.A. and Fischer, E.M. (1994) Entrepreneurs' experience, expertise, and the performance of technology-based firms, IEEE Transactions on Engineering Management, 41(4), 365-374. https://doi.org/10.1109/17.364560
  46. Reuber, R.A. and Fischer, E.M. (1999) Understanding the consequences of founders' experience, Journal of Small Business Management, 37(2), 30-45.
  47. Ronstadt, R. (1988) The corridor principle, Journal of Business Venturing, 3, 31-40. https://doi.org/10.1016/0883-9026(88)90028-6
  48. Sarasvathy, S.D. (2001) Causation and effectuation: toward a theoretical shift from economic inevitability to entrepreneurial contingency, Academy of Management Review, 26(2), 243-263. https://doi.org/10.5465/amr.2001.4378020
  49. Sarasvathy, S.D. and Dew, N. (2005) New market creation through transformation, Journal of Evolutionary Economics, 15(5), 533-565. https://doi.org/10.1007/s00191-005-0264-x
  50. Sarasvathy, S.D. (2008) Effectuation: Elements of Entrepreneurial Expertise, Northhampton, MA and Cheltenham: Edward Elgar.
  51. Sardana, D. and Scott-Kemmis, D. (2010) Who learns what? a study based on entrepreneurs from biotechnology new ventures, Journal of Small Business Management, 48, 441-468. https://doi.org/10.1111/j.1540-627X.2010.00302.x
  52. Shane, S. and Venkataraman, S. (2000) The promise of entrepreneurship as a field of research, Academy of Management Review, 25, 217-226.
  53. Shepherd, D.A., Douglas, E.J. and Shanley, M. (2000) New venture survival: ignorance, external shocks, and risk reduction strategies, Journal of Business Venturing, 15, 393-410. https://doi.org/10.1016/S0883-9026(98)00032-9
  54. Stinchcombe, A.L. (1965) Social Structure and Organizations, In: James, G. (ed.), Handbook of Organizations, Chicago: Rand McNally, 142-193.
  55. Suh, M.K., Park, J.O. and Park, B.S. (2017) Determinants of R&D commercialization by SMEs after technology transfer, Asian Journal of Innovationand Policy, 6(1), 45-57. https://doi.org/10.7545/ajip.2017.6.1.045
  56. Suh, S.H., Ko, J.O. and Lee, S.Y. (2012) An empirical study on the success factors of inter-firm alliances for new product development: with a focus on the SMEs in Korea, Asian Journal of Innovation and Policy, 1(1), 71-91. https://doi.org/10.7545/ajip.2012.1.1.071
  57. Sullivan, R. (2000) Entrepreneurial learning and mentoring, International Journal of Entrepreneurial Behaviour and Research, 6, 160-175. https://doi.org/10.1108/13552550010346587
  58. Thornhill, S. (2006) Knowledge, innovation and firm performance in high and low technology regimes, Journal of Business Venturing, 21(5), 687-703. https://doi.org/10.1016/j.jbusvent.2005.06.001
  59. Ucbasaran, D. and Westhead, P. (2002) Does entrepreneurial experience influence opportunity identification?, In: Bygrave, W.D. et al., (eds.), Frontiers of Entre- preneurship Research, Wellesley, MA: Babson College.
  60. Vohora, A., Wright, M. and Lockett, A. (2004) Critical junctures in the development of university high-tech spin-out companies, Research Policy, 33(1), 147-175. https://doi.org/10.1016/S0048-7333(03)00107-0
  61. Wang, C.L. (2008) Entrepreneurial orientation, learning orientation, and firm performance, Entrepreneurship Theory and Practice, 32, 635-656. https://doi.org/10.1111/j.1540-6520.2008.00246.x
  62. Wang, C.L. and Chugh, H. (2014) Entrepreneurial learning: past research and future challenges, International Journal of Management Reviews, 16, 24-61. https://doi.org/10.1111/ijmr.12007
  63. Watson, W., Steward, W. and BarNir, A. (2003) The effects of human capital, organizational demography, and interpersonal processes on venture partner perceptions of firm profit and growth, Journal of Business Venturing 18(2), 145-164. https://doi.org/10.1016/S0883-9026(01)00082-9
  64. Westhead, P., Ucbasaran, D. and Wright, M. (2005) Decisions, actions, and performance: do novice, serial, portfolio entrepreneurs differ?, Journal of Small Business Management, 43, 393-417. https://doi.org/10.1111/j.1540-627X.2005.00144.x
  65. Wiklund, J., Patzelt, H. and Shepherd, D.A. (2009) Building an integrative model of small business growth, Small Business Economics, 32, 351-374. https://doi.org/10.1007/s11187-007-9084-8
  66. Williams, M.K. and Donnellon, A. (2014) Personalizing entrepreneurial learning: a pedagogy for facilitating the know why, Entrepreneurship Research Journal, 4(2), 167-204.
  67. Wiltbank, R., Read, S., Dew, N. and Sarasvathy, S. (2006) What to do next? the case for non-predictive strategy, Strategic Management Journal, 27, 981-998. https://doi.org/10.1002/smj.555
  68. Young, J.E., Sexton, D.L. (2003) What makes entrepreneurs learn and how do they do it?, Journal of Entrepreneurship, 12, 155-182. https://doi.org/10.1177/097135570301200201