Too Much of a Good Thing?: The Nonlinear Effect of Dynamic Capabilities on New Venture Survival

Thomas Ritter; Achim Walter; Monika Sienknecht; Nicole Coviello

doi:10.5465/AMBPP.2018.241

Too Much of a Good Thing? The Nonlinear Effect of Dynamic Capabilities on New Venture Survival

Thomas Ritter, Achim Walter, Monika Sienknecht, Nicole Coviello

Department of Strategy and Innovation

Research output: Chapter in Book/Report/Conference proceeding › Conference abstract in proceedings › Research › peer-review

Abstract

This research conceptualizes and then shows how one type of dynamic capability - network capability - does not always have a positive relationship with the survival of new technology-based ventures. Using data from a survey of 280 new ventures combined with secondary and patent data, we show that although network capability is beneficial at low to intermediate levels, it decreases new venture survival at high levels. The influence of network capability on survival also decreases under conditions of high environmental hostility but no moderation effect is found for environmental dynamism. Our results suggest that investment in dynamic capabilities in new ventures should be optimized, not maximized, for survival. Also, environmental hostility is more relevant than dynamism for entrepreneurs in new ventures to monitor.

Original language	English
Title of host publication	Proceedings of the Seventy-eighth Annual Meeting of the Academy of Management
Editors	Guclu Atinc
Number of pages	6
Place of Publication	Briar Cliff Manor, NY
Publisher	Academy of Management
Publication date	2018
Article number	241
DOIs	https://doi.org/10.5465/AMBPP.2018.241
Publication status	Published - 2018
Event	The Academy of Management Annual Meeting 2018: Improving Lives - Chicago, United States Duration: 10 Aug 2018 → 14 Aug 2018 Conference number: 78 http://aom.org/annualmeeting/

Conference

Conference	The Academy of Management Annual Meeting 2018
Number	78
Country/Territory	United States
City	Chicago
Period	10/08/2018 → 14/08/2018
Internet address	http://aom.org/annualmeeting/

Series	Academy of Management Proceedings
ISSN	2151-6561

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title = "Too Much of a Good Thing?: The Nonlinear Effect of Dynamic Capabilities on New Venture Survival",

abstract = "This research conceptualizes and then shows how one type of dynamic capability - network capability - does not always have a positive relationship with the survival of new technology-based ventures. Using data from a survey of 280 new ventures combined with secondary and patent data, we show that although network capability is beneficial at low to intermediate levels, it decreases new venture survival at high levels. The influence of network capability on survival also decreases under conditions of high environmental hostility but no moderation effect is found for environmental dynamism. Our results suggest that investment in dynamic capabilities in new ventures should be optimized, not maximized, for survival. Also, environmental hostility is more relevant than dynamism for entrepreneurs in new ventures to monitor.",

author = "Thomas Ritter and Achim Walter and Monika Sienknecht and Nicole Coviello",

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editor = "Guclu Atinc",

booktitle = "Proceedings of the Seventy-eighth Annual Meeting of the Academy of Management",

publisher = "Academy of Management",

address = "United States",

note = "The Academy of Management Annual Meeting 2018 : Improving Lives, AOM 2018 ; Conference date: 10-08-2018 Through 14-08-2018",

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Ritter, T, Walter, A, Sienknecht, M & Coviello, N 2018, Too Much of a Good Thing? The Nonlinear Effect of Dynamic Capabilities on New Venture Survival. in G Atinc (ed.), Proceedings of the Seventy-eighth Annual Meeting of the Academy of Management., 241, Academy of Management, Briar Cliff Manor, NY, Academy of Management Proceedings, The Academy of Management Annual Meeting 2018, Chicago, Illinois, United States, 10/08/2018. https://doi.org/10.5465/AMBPP.2018.241

Too Much of a Good Thing? The Nonlinear Effect of Dynamic Capabilities on New Venture Survival. / Ritter, Thomas; Walter, Achim; Sienknecht, Monika et al.

Proceedings of the Seventy-eighth Annual Meeting of the Academy of Management. ed. / Guclu Atinc. Briar Cliff Manor, NY : Academy of Management, 2018. 241 (Academy of Management Proceedings).

Research output: Chapter in Book/Report/Conference proceeding › Conference abstract in proceedings › Research › peer-review

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