Should new ventures stick to their knitting once they start commercialising or should they engage in frequent changes of their business idea? In this paper we argue that new ventures still need to learn their way in the early phases of commercialisation and that changes are good, but subject to two important contingencies. First is that changes should be aimed at enhancing uniqueness, which in turn enhances new venture performance. Second is that our results show that changes have limited affect on uniqueness and performance for entrepreneurs aiming at maximising opportunities, but that changing the business idea has a significant positive impact for entrepreneurs focusing on minimising losses. Our findings indicate that entrepreneurs aiming at minimising losses may offset their initial disadvantages by engaging in a series of adaptations of the business idea to gain higher performance and a more unique product offering.
|Title of host publication||8th International Entrepreneurship Exchange|
|Subtitle of host publication||Regional Frontiers of Entrepreneurship Research 2011|
|Place of Publication||Melbourne|
|Publisher||Swinburne University of Technology|
|Number of pages||12|
|Publication status||Published - 1 Feb 2011|
- Business Idea Changes, New Venture , Performance , Novelty