For the better or the worse? The impact of business idea changes on new venture performance and novelty

Henri Burgers, Sukanlaya Sawang

Research output: Chapter in Book/Report/Conference proceedingConference proceeding

Abstract

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.
Original languageEnglish
Title of host publication8th International Entrepreneurship Exchange
Subtitle of host publication Regional Frontiers of Entrepreneurship Research 2011
EditorsAlex Maritz
Place of Publication Melbourne
PublisherSwinburne University of Technology
Pages69-80
Number of pages12
ISBN (Print)9780980332872
Publication statusPublished - 1 Feb 2011

Keywords

  • Business Idea Changes, New Venture , Performance , Novelty

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  • Cite this

    Burgers, H., & Sawang, S. (2011). For the better or the worse? The impact of business idea changes on new venture performance and novelty. In A. Maritz (Ed.), 8th International Entrepreneurship Exchange: Regional Frontiers of Entrepreneurship Research 2011 (pp. 69-80). Melbourne: Swinburne University of Technology.