New Venture Strategy Timing, Environmental Uncertainty, and Performance

by Dean A. Shepherd; Mark Shanley

• ISBN13: 9780761913542
• ISBN10: 0761913548
• Format: Paperback
• Copyright: 1998-06-24
• Publisher: Sage Publications

Summary

'The descriptive insights portray in depth both the pros and cons of specific perspective such that the reader is left with a comprehensive overview of the issue being discussed. Overall, it probably works best as a student textbook.' - Paul Hannon, International Small Business Journal Examining in detail the whole process of introducing a new product or service, this book provides a framework for thinking through the issues in new venture performance. Topics covered include entry timing, market conditions, focus or breadth of entry scope, product or process mimicry, creation and development of entry barriers, and differences between individual and corporate ventures.

Author Biography

Dean A. Shepherd is Assistant Professor of Entrepreneurship and Strategy at the Lally School of Management and Technology, Rensselaer Polytechnic Institute. Mark Shanley is Associate Professor of Management and Strategy at the J.L. Kellogg Graduate School of Management, Northwestern University.

Table of Contents

Common Wisdom on the Timing of Entry	1	(15)
The Common Wisdom on Pioneering	2	(10)
New Venture Profitability: A Simple Perspective	3	(5)
Common Wisdom on New Venture Survival	8	(4)
Simplistic or Oversimplistic?	12	(3)
Environmental Stability, Timing, and New Venture Performance	15	(10)
Demand Uncertainty	16	(3)
Technological Uncertainty	19	(1)
Pioneer's Inertia	20	(2)
Conclusion	22	(3)
Educational Capability, Timing, and New Venture Performance	25	(18)
Customer Uncertainty of Organizational Identity	27	(1)
Customer Uncertainty of Management	28	(1)
Customer Uncertainty of Industry's Product	29	(3)
Product Type	32	(2)
New Venture Performance	34	(5)
Educational Capability, Timing, and Profitability	34	(3)
Educational Capability, Timing, and Probability of Survival	37	(2)
Conclusion	39	(4)
Barriers to Entry, Timing, and New Venture Performance	43	(14)
Lead Time	44	(4)
Lead Time, Timing of Entry, and Profitability	47	(1)
Lead Time, Timing of Entry, and Probability of Survival	47	(1)
The Costs and Benefits of Competitive Rivalry	48	(1)
Managing Lead Time: What to Do?	49	(5)
Conclusion	54	(3)
Scope of Entry and Degree of Mimicry: Two Factors That Affect New Venture Uncertainty	57	(18)
Entry Scope	58	(6)
Narrow Is Better	58	(3)
Broad Is Better	61	(1)
Scope, Timing, and Profitability	62	(1)
Scope, Timing, and Probability of Survival	63	(1)
Entry Wedge Mimicry	64	(8)
Why Would a New Entrant Imitate?	65	(1)
Who Do Firms Imitate?	66	(1)
Types of Entry Wedge Mimicry	67	(3)
Mimicry, Timing, and New Venture Performance	70	(2)
Conclusion	72	(3)
Competence, Timing of Entry, and New Venture Performance	75	(20)
Competence	75	(4)
New Venture Competence	79	(3)
New Venture Competence and Competitive Advantage: How Independent and Corporate Ventures Differ	82	(9)
Conclusions: What to Do?	91	(4)
Conclusion and Summary	95	(4)
References	99	(8)
Index	107	(4)
About the Authors	111