Wiley: Strategic Entrepreneurship Journal: Table of Contents

Academic entrepreneurs' material engagements in the creation of science‐based ventures

Elimar Pires Vasconcellos, Jonathan Wareham, Laia Pujol Priego — Fri, 03 Apr 2026 23:55:41 -0700

Abstract

Research Summary

This paper examines the creation of entrepreneurial opportunities under coupled technical and demand uncertainty within science-based ventures (SBVs). Whereas opportunity creation theory emphasizes discursive processes, we build on practice theory and pragmatism to explore how SBV opportunities also emerge through entrepreneurs' evolving engagements with indeterminate material artifacts. Through a longitudinal multiple-case study, we identify two patterns of material engagement: epistemic engagement, oriented toward knowledge creation, and pragmatic engagement, oriented toward practical use. We show how opportunity creation unfolds through interweaving cycles of epistemic and pragmatic engagement. By introducing material engagements as constitutive, we specify creation theory for SBVs and highlight the central role of materiality in shaping belief formation, opportunity objectification, stakeholder engagement, and the variation–selection–retention process.

Managerial Summary

This paper explores how entrepreneurs create science-based ventures (SBVs) by engaging with evolving material artifacts, like sensors and prototypes. Based on a study of SBV initiatives supported by the European Commission's ATTRACT program, we identify a process in which entrepreneurs repeatedly alternate between epistemic engagement—focused on scientific understanding—and pragmatic engagement—focused on usability and implementation. This material engagement cycle plays a central role in venture development under coupled technical and demand uncertainty. We highlight tensions inherent in this process and the strategies through which they are accommodated, offering practical insights for entrepreneurs building ventures from frontier science and policymakers supporting science commercialization.

The impact of workers' compensation laws on entrepreneurial activity

Indu Khurana, Daniel J. Lee, Julio O. de Castro — Wed, 01 Apr 2026 00:15:23 -0700

Abstract

Research Summary

Government policy that aims to stimulate business activity often overlooks its indirect impacts on entrepreneurial entry. In particular, the role of free time, especially in concert with liquidity constraints, remains an underexplored factor. In this paper, we exploit two exogenous shocks to workers' free time to furnish plausibly causal effects on entrepreneurial activity: (random) injury and the 2011 amendments to the Illinois workers' compensation laws. Utilizing a two-way fixed effects estimation, we find that as workers' compensation becomes less generous, that is, by limiting both financial resources and an employee's time away from work, entrepreneurial activity within a specific geographical region is significantly reduced. Thus, we provide evidence of an unintended and negative impact on entrepreneurial activity caused by an indirect policy change. Further, this result unduly affects the recently injured or otherwise disabled. Our results are robust to alternative specifications and data sources, suggesting an important incidence of compensatory insurance regulation on entrepreneurial activity and, as a result, important considerations for future policymaking.

Managerial Summary

Workers' compensation is a state-level program that provides replacement wages to workers injured on the job. In 2011, amendments to Illinois' workers' compensation laws made this program less generous in terms of both financial benefits and time out of work. We study the impact of these amendments on entrepreneurial activity. We find that less generous workers' compensation has a large adverse effect on entrepreneurial activity because it constrains two important factors required for experimentation with entrepreneurship: financial resources and time. Our results hold up to several statistical models and controls, including local innovative and high-tech firms, as well as alternative datasets. Our findings yield important insights for policymakers in other states drafting such regulations and for researchers studying the incidence of such policies.

Framing novelty in crowdfunding: Which words win support, where, and at what stakes

Agnieszka Kwapisz — Fri, 20 Mar 2026 18:38:57 -0700

Abstract

Research Summary

We examine how promotional language (“hype”) in reward-based crowdfunding is associated with campaign success, and whether those associations vary across sector contexts and with campaign execution burden. Using dictionary-based text measures from 635 U.S. Kickstarter campaigns across five sectors, we distinguish three novelty-framing moves: capability/rigor language, excellence/status language, and attitude/affect language. We find no uniform association between aggregate hype and success. Instead, the observed associations vary systematically across rhetorical moves, sectors, and goal levels. Capability/rigor language is positively associated with success in Technology, attitude/affect language is positively associated with success in Entertainment, and excellence/status language is negatively associated with success in Design. Beyond these sector differences, the paper's clearest cross-cutting pattern is that capability/rigor language becomes more positively associated with success as funding goals increase.

Managerial Summary

The value of “hype” on Kickstarter depends on what is said, what is being offered, and how ambitious the ask is. In our data, Technology campaigns are more positively associated with success when descriptions emphasize testing, technical specificity, and execution readiness, whereas Entertainment campaigns are more positively associated with attitude/affect language. In contrast, excellence/status claims are associated with lower success in Design. Across contexts, the clearest pattern is that feasibility-oriented language becomes more positively associated with success as funding goals increase, suggesting that larger asks benefit more from cues of deliverability than from undifferentiated promotional intensity.

Entrepreneurial decision‐making under uncertainty and competing goals

Thu, 19 Mar 2026 07:44:44 -0700

Abstract

Research Summary

Entrepreneurs make critical decisions in uncertain environments where information is limited, outcomes are difficult to predict, and multiple goals often compete. Yet, existing research offers scattered insights into how entrepreneurs dynamically adapt to such contexts and how their decisions are shaped by behavioral and cognitive foundations such as judgment, intuition, and experience. We shed light on these phenomena by exploring how decision-making is influenced by factors at multiple levels, from individual traits and family dynamics to team interactions and organizational structures. A key aspect of our inquiry focuses on how entrepreneurs manage uncertainty by balancing economic goals, such as growth and profitability, with non-economic objectives like social impact, sustainability, or knowledge advancement. By integrating these perspectives, this work offers a conceptual framework that connects antecedents, processes, and outcomes of entrepreneurial decision-making under uncertainty and competing goals, providing a promising roadmap for future research.

Managerial Summary

Entrepreneurs often make decisions in uncertain environments, where they must contend with limited information and competing goals. This work explores how entrepreneurs balance economic objectives, such as profit, with non-economic ones, like satisfying various stakeholders, achieving social impact, and sustainability. It highlights the role of individual, family, team, and organizational factors in shaping these decisions, offering novel insights into how entrepreneurs can manage trade-offs, adapt feedback-based strategies, and recalibrate priorities over time. For owners, managers, and business leaders, understanding these dynamics can lead to better decision-making, improved risk management, enhanced strategic alignment, increased innovation, and a more balanced approach to growth.

Issue Information

Thu, 19 Mar 2026 07:44:44 -0700

Strategic Entrepreneurship Journal, Volume 20, Issue 1, Page 1-2, March 2026.

Founder's entry strategy and funding performance in the crowdfunding industry: The mediating role of founder's attention

Dalee Yoon, Joon Mahn Lee, Luke Rhee — Thu, 19 Mar 2026 07:44:44 -0700

Abstract

Research Summary

Building on recent studies on founders' entry strategy and the attention-based view, our study examines the underexplored relationship between entrepreneurial entry mode and funding performance. We offer a novel perspective on how different entry strategies—such as hybrid, portfolio, and full-time entrepreneurship—impact start-up performance. Additionally, we develop a theoretical framework highlighting founder attention as a mediator in this relationship. Our research was conducted in the crowdfunding context, with findings remaining consistent across multiple measures of founder attention and funding performance. To address potential endogeneity concerns, we employ two-stage instrumental variable analyses and a propensity score matching method, ensuring the robustness of our results.

Managerial Summary

Entrepreneurs' choice of entry strategy plays a critical role in shaping their ability to secure funding and drive their start-up success. Our study highlights how different entry strategies—hybrid, portfolio, and full-time entrepreneurship—affect funding performance, particularly in the crowdfunding context. A key insight is the role of founder attention in mediating the relationship between entry strategy and funding success. The way founders allocate their focus across different pursuits influences investor perceptions and financial outcomes. Therefore, aligning entry strategies with the ability to effectively manage and signal commitment to ventures is essential from a practical standpoint. Moreover, entrepreneurs and investors should consider how strategic entry choices impact not only operational execution but also the likelihood of securing financial support.

Don't calm down! How affective climate emerges in start‐ups

Marius Jones, Elisabeth Norman, Therese Egeland, Vidar Schei — Thu, 19 Mar 2026 07:44:44 -0700

Abstract

Research Summary

Different types of affective climates—norms related to the experience, expression, use, and regulation of emotions—have been shown to impact organizational outcomes. However, we know less about how these climates emerge. This study investigates the emergence of affective climates through a 22-month longitudinal multiple-case study of five early-stage start-ups. Our analysis revealed that an affective climate of high authenticity emerged in start-ups through three key mechanisms: the interaction between positive and negative emotions, constructive meta-emotions, and interpersonal emotion regulation characterized by emotional validation and problem-solving. Our findings contribute to the understanding of affective climate emergence and offer nuanced insights into how founders, managers, and teams can cultivate constructive emotional dynamics in highly uncertain, fast-paced environments.

Managerial Summary

We explore how affective climate emerges through a longitudinal case study of five start-ups. Affective climate describes norms and assumptions concerning the experience, expression, use, and regulation of emotions. Research suggests that an affective climate of high authenticity—meaning that members feel free to express their actual emotions—contributes to creativity and performance while reducing burnout. However, prior research offers few insights into how and why different affective climates emerge in start-ups. We find that managers and founders may shape their organization's affective climate toward high authenticity by fostering positive emotions, through an accepting attitude toward their own negative emotions, and by validating employees' emotions. By doing so, managers and founders can foster healthy emotional dynamics in their start-ups.

Developing opportunities in times of crisis: The interactive effects of corporate entrepreneurs' emotional reactions and psychological climates

Yingzhu Fu, Marilyn A. Uy, Waifong Boh — Thu, 19 Mar 2026 07:44:44 -0700

Abstract

Research Summary

This research investigates how corporate entrepreneurs' emotional reactions to the business impact of a crisis interact with psychological climates to drive engagement in opportunity formation. Drawing on affective events theory and psychological climate theory, we posit that positive emotional reactions increase engagement in opportunity formation when the psychological climate for initiative is strong, and negative emotional reactions increase engagement when the psychological climate for psychological safety is strong. Conversely, these relationships become negative when these climates are weak. An analysis of data from an eight-wave longitudinal investigation involving 126 corporate entrepreneurs supports our predictions. By uncovering how corporate entrepreneurs' emotional reactions interact with climates for initiative and psychological safety, we illuminate the affective foundations of opportunity formation and show how organizations can foster climates that channel emotions into entrepreneurial action.

Managerial Summary

This study examines how corporate entrepreneurs' emotional reactions to crises interact with psychological climates to shape entrepreneurial actions. Our findings demonstrate that organizations should cultivate climates characterized by high personal initiative and psychological safety among middle managers. Managers' perceptions of such climates effectively harness both positive and negative emotional reactions for productive entrepreneurial actions, thereby facilitating corporate entrepreneurship. These insights are particularly marked for firms in disrupted industries, where conventional business approaches become obsolete in a crisis. Absent such organizational climates, managers' emotional reactions can discourage them from taking initiative on new opportunities, making it more difficult for the organization to transform and adapt.

Is Cain more able? A behavioral perspective on the relationship between family CEO birth order and family firms' CSR

Thu, 19 Mar 2026 07:44:44 -0700

Abstract

Research Summary

We investigate family CEO birth order as an antecedent of family firms' CSR behavior. Despite psychology literature recognizing it as a key predictor of individual behavior, birth order has been largely neglected in management research. Drawing on behavioral economics and evolutionary psychology—specifically, the Family Niche Model—we identify economic and social preferences as two competing channels through which birth order effects propagate to CSR behavior. An unbalanced panel dataset of 550 firm-year observations from 84 family firms between 2010 and 2022 reveals a negative relationship between family CEO birth order and CSR behavior, pointing to the dominance of the economic channel, whereby the higher risk tolerance among later borns manifests. This relationship is positively and negatively moderated by family CEO sibship size and age, respectively.

Managerial Summary

We examine the role of family CEO birth order in shaping family firms' CSR behavior considering that individuals' economic and social preferences are strongly influenced by their birth order. The results show that family CEO birth order negatively relates to CSR behavior. We argue that this relationship is driven by higher risk tolerance among later-born family CEOs, who are consequentially less inclined to adopt CSR behavior as a risk-mitigating strategy. The relationship is attenuated by family CEO sibship size and amplified by CEO age. Our study cautions family firms concerned with CSR to carefully consider the implications of birth order when selecting family members for the CEO position. Concurrently, family CEOs should be aware that their early family experiences may affect their CSR decisions.

Upfront payments to venture‐backed startups in technology alliances: Bargaining effects of VC affiliations

Ramakrishna Devarakonda, Shivaram Devarakonda, Jeffrey J. Reuer — Thu, 19 Mar 2026 07:44:44 -0700

Abstract

Research Summary

Upfront payments are important financial resources startups seek to negotiate in technology alliances. This study unpacks how venture-backed startups can benefit from their VC affiliations and obtain better payments. We develop a bargaining framework and argue that VCs can strengthen venture-backed startups' hand in alliance negotiations through two distinct pathways: (i) by providing a quality signal, and (ii) by serving as conduits of alternative partnering options. We further suggest that these distinct benefits in bargaining hinge on startups' technological quality, which substitutes for the quality signal arising from VC affiliations but complements the VC's intermediation role in markets for partners. The evidence therefore identifies the distinct and complex channels by which VCs can help startups obtain financial resources at nascent stages through their technology alliances.

Managerial Summary

Upfront payments in technology alliances are vital revenues for technology startups. This study reveals how venture capital (VC) affiliations strengthen startups' bargaining position and enable them to secure larger payments. VCs add value in startups' alliance negotiations in two key ways: by signaling the quality of the startup's resources and by providing alternative partnering options. The benefits of these mechanisms vary with the startup's technological quality—strong technology can substitute for the VC's quality signal but enhances the value of VC intermediation. Managers should recognize that VCs add value to their ventures beyond financing by also reinforcing their investee startups' bargaining power, helping startups negotiate favorable terms in technology alliances.

Decision‐making in entrepreneurial teams with competing economic and noneconomic goals

Jeroen Neckebrouck, Thomas Zellweger — Thu, 19 Mar 2026 07:44:44 -0700

Abstract

Research Summary

How should decision-making be organized in entrepreneurial teams pursuing competing economic and noneconomic goals? Using a computational model, we examine how four archetypical decision-making structures—unanimous approval, individual autonomy, majority voting, and lead entrepreneur—shape the performance of entrepreneurial firms when team members hold varied preferences for how to tradeoff economic and noneconomic goals. In stable environments, we find that majority voting generates highest economic performance, while unanimous approval generates highest noneconomic performance. Conversely, unanimous approval outperforms in fast-changing contexts. Although goal diversity generally reduces economic performance, it enhances it in fast-changing settings when teams operate under unanimous approval. This study thus underscores the critical role of decision-making structures for the success of entrepreneurial teams.

Managerial Summary

How should entrepreneurial teams make decisions when balancing economic and noneconomic goals? We examine four decision-making approaches—unanimous approval, individual autonomy, majority voting, and lead entrepreneur—and their impact on economic and noneconomic performance. In stable environments, majority voting leads to highest economic performance, while unanimous approval excels in achieving noneconomic goals. In fast-paced environments, unanimous approval consistently delivers superior outcomes, enhancing both economic and noneconomic performance. Notably, teams with diverse goals can improve their economic performance in high-velocity settings when using unanimous approval. These findings highlight the importance of choosing the right decision-making structure to optimize performance in varying conditions. For entrepreneurial teams, adapting decision-making processes to the pace of the environment is essential for success.

Promoting novelty creation: The role of ownership distribution in new venture teams

Elisabeth Mueller, Laura Bregenzer, Patrick Figge, Carolin Haeussler — Mon, 02 Mar 2026 02:05:07 -0800

Abstract

Research Summary

How is the ownership distribution in new venture teams (NVTs) related to the novelty of a firm's inventions? Using an abductive approach and analyzing 5114 projects from 2148 German firms, we find higher novelty when a majority owner is among the NVT members and when members of NVTs with unequal ownership splits participate directly in inventive projects. Our empirical facts and interview evidence suggest that unequal splits enhance decision-making mandates, enabling NVTs to avoid consensus deadlocks and empowering owner-inventors to foster novelty. Notably, the ownership split within the NVT appeared to matter more for novelty than the specific share held by owner-inventors. These insights contribute to our understanding of the interplay among intra-team ownership, organizational governance, inventor-entrepreneurs, and innovative outcomes in entrepreneurial ventures.

Managerial Summary

At incorporation, new venture teams (NVTs) decide how to divide ownership among themselves. The distribution can vary from equal shares to a majority ownership structure. Ownership distribution can influence how NVTs make decisions under uncertainty and how independently individual NVT members can implement their idiosyncratic technological ideas. Our quantitative and qualitative findings indicate that concentrating ownership with majority owners promotes more radical innovations, while an equal distribution entails the risk of leading only to incremental advances. Additionally, in NVTs with unequal ownership distribution, the participation of NVT members in R&D activities promoted novelty. Therefore, NVTs should carefully consider the implications for decision-making when determining their ownership distribution, as it can be a strategic tool for promoting innovation.

The power of expressed humility: Early stage investors' reaction to humble entrepreneurs

Laurent Vilanova, Ivana Vitanova — Thu, 05 Feb 2026 01:30:28 -0800

Abstract

Research Summary

We examine how entrepreneur-expressed humility affects early stage investors' willingness to fund new ventures. In pitching contexts where investors rely on relational cues and implicit prototypes of entrepreneurs, we theorize three distinct pathways through which expressed humility shapes funding decisions. First, building on research regarding interpersonal signals in early stage valuation, we propose that humility fosters perceptions of interpersonal affect and trust and team-building qualities, increasing investors' willingness to fund. Second, drawing on implicit leadership theories, we argue that humility may trigger negative perceptions regarding the entrepreneur's ability to make rapid and risky decisions. Across a videometric analysis of 140 real-world pitches and a randomized experiment with French early stage investors, we show that expressed humility elicits both pathways, but investors prioritize positive attributions.

Managerial Summary

Although humility is often regarded as a positive leadership trait, it contradicts implicit prototypes of successful entrepreneurs, who are typically seen as dominant and assertive. We examine how early stage investors perceive and respond to displays of humility during pitches. We propose that entrepreneur-expressed humility produces ambiguous effects: It enhances perceptions of interpersonal affect and trust and team-building qualities, but raises doubts about the entrepreneur's ability to make rapid and risky decisions. Using a videometric analysis of 140 pitches from the French version of Shark Tank and a randomized experiment with venture capital investors, we find evidence for these competing pathways. Overall, investors prioritize the positive attributions of interpersonal skills, suggesting that entrepreneurs benefit from expressing humility when pitching.

Ecosystem conditions and the efficacy of entrepreneurial support organizations: Moderating effects on venture entry

Marco Bade — Thu, 29 Jan 2026 15:35:19 -0800

Abstract

Research Summary

Using a panel of 2688 city-year observations of German fintech ventures and entrepreneurial support organizations (ESOs), we examine how ESO presence relates to venture entry. We argue and demonstrate that this relationship is contingent on local founding conditions. We find that ESO presence is most strongly associated with entry in thin ecosystems, while this association weakens in more active and developed contexts. Patterns in entries of non-supported versus ESO-supported ventures, along with differences across ESO types, support our argument that primarily ecosystem-level bridging mechanisms, such as legitimacy diffusion, knowledge spillovers, and access to relational networks, are sensitive to local conditions, whereas direct support provided by ESOs to program participants is not context-dependent.

Managerial Summary

Entrepreneurs, entrepreneurial support organizations (ESOs), and ecosystem builders benefit from understanding the broader economic and entrepreneurial context. In well-developed ecosystems, informal networks can provide access to knowledge, collaboration opportunities, and legitimacy signals, reducing the marginal contribution of additional ESO presence in the ecosystem. In less-developed ecosystems, ESOs can support venture formation by bridging entrepreneurs to networks, partners, and markets, and by mitigating resource scarcity and the challenges of newness. Structured programs, targeted mentorship, and guidance can support venture entry across the ecosystem, complementing existing informal networks and addressing gaps where they exist. Our findings suggest that the role and potential impact of ESOs vary with local founding conditions, emphasizing the importance of aligning support mechanisms with ecosystem maturity and structural characteristics.

Strategic framing of novel ideas: How contestation shapes the evolution of novelty

Janina Klein, Elco van Burg, Christine Moser — Wed, 28 Jan 2026 03:56:57 -0800

Abstract

Research Summary

Entrepreneurs use strategic framing to gain support for their novel ventures, products, and services. A key challenge entrepreneurs face is that audiences often contest frames that introduce novel ideas, especially when these ideas disrupt audiences' mental and business models. Such contestation can hinder novel ideas from being accepted, a risk that is amplified when entrepreneurs face contestation from multiple audiences. We lack understanding, however, of how contestation from multiple audiences shapes the strategic framing of novel ideas. We study this question at Tony's Chocolonely, a social enterprise that faced such contestation when introducing “slave-free” chocolate. By showing how the social enterprise reacted to contestation from multiple audiences in different ways, we uncover novel mechanisms of frame change and stability.

Managerial Summary

Entrepreneurs use strategic framing to gain support for their novel ideas, products, and services. In so doing, they must navigate resistance from different audiences, especially when entrepreneurs introduce novel ideas that disrupt the status quo. Audience resistance can hinder novel ideas from gaining momentum. We do not know, however, how entrepreneurs can navigate resistance from multiple audiences. Our study examines how Tony's Chocolonely, a social enterprise fighting child labor in the chocolate industry, navigated resistance against its “slave-free” chocolate from diverse audiences. Our study reveals novel insights into how audience resistance shapes entrepreneurs' strategic framing of novel ideas.

New venture team stability and long‐run organizational growth

Jerry Guo, Anders Frederiksen, Lars Frederiksen — Thu, 01 Jan 2026 16:45:05 -0800

Abstract

Research Summary

We explore the impact of new venture team (NVT) stability on long-run organizational growth. With an instrumental variable design, we leverage a matched employer-employee dataset of all Danish new ventures from 1981 to 1997. We find strong evidence that NVT stability has a positive effect on organizational growth in employees and that the effect grows stronger over time. We also find that stability is especially impactful for larger teams and for teams with higher education levels. The gains from stability also appear to be driven entirely by mixed-gender teams. We connect our findings to the literature on NVT dynamics and suggest avenues for future research.

Managerial Summary

Stability within founding teams is crucial for the longevity and expansion of new ventures. We examine a dataset of Danish startups and find that ventures with stable founding teams demonstrate a 16.1 percentage point higher likelihood of survival and a 20.4% increase in average size after 10 years. This effect is accentuated in larger, more educated, and gender-diverse teams. For entrepreneurs, these insights underscore the importance of not only assembling a strong initial team but also maintaining its composition to leverage growth opportunities as the business evolves.

From critique to catalyst: How academic entrepreneurs transform negative feedback into pivots and performance

D. Carrington Motley, Michael Leatherbee, Riitta Katila — Mon, 03 Nov 2025 07:33:58 -0800

Abstract

Research Summary

This study examines how academic entrepreneurs refine business ideas in response to external critique and how these responses relate to performance. We develop a framework that links feedback (critique), business-idea changes (pivots), and performance, and test it using detailed data on external stakeholder feedback, changes to the business idea's core and periphery, and commercialization outcomes in 316 academic-led teams. We find that academic entrepreneurs frequently modify their business idea's core in response to negative feedback, and that core changes—rather than peripheral ones—are positively associated with commercialization. Challenging the idea that all entrepreneurs are inertial, we find that academic entrepreneurs both actively embrace and benefit from changes to the business idea's core. By tracing the feedback-response dynamics of business idea components, our study adds granularity to research on pivoting.

Managerial Summary

Entrepreneurs often face a choice between reworking the core of a business idea and making changes to its periphery. Analyzing 316 academic-led teams seeking to commercialize technologies using the Lean Startup Method, we find that academic-led teams frequently change their idea's core in response to negative feedback—and that only core changes, rather than peripheral changes, are linked to improved commercialization outcomes. Overall, the results show the effectiveness of the Lean Startup Method and demonstrate that focusing feedback on the core of the business idea is an effective way to provide feedback to academic entrepreneurs.

Public support and VC financing in academic startups

Maud Thys, Maikel Pellens, Hanna Hottenrott, Marius Berger — Thu, 11 Sep 2025 23:05:27 -0700

Abstract

Research Summary

We investigate public support and venture capital (VC) investment in academic startups. Government support may enable follow-on investment by providing a quality signal to investors. This signal is especially important for academic startups, which face large funding gaps due to their complexity, cutting-edge nature, and uncertainty regarding the founders' management capabilities and commitment. Using a panel of startups in Germany, our analyses confirm that academic startups are more likely to obtain follow-on VC investment after receiving public support than non-academic startups. Further, this effect is limited in time, lasts longer for academic startups, is concentrated in high-tech manufacturing firms, and is stronger for investments from business angels. Our findings have implications for policymakers seeking to foster academic entrepreneurship through policy programs and VC investment.

Managerial Summary

Obtaining seed and growth capital is essential for potentially highly innovative startups. We show that startups that obtain public support are more likely to receive VC funding and that this effect is stronger for startups with academic founders, approximately twice as large. We further show that this benefit is limited in time, concentrated in the high-tech manufacturing industry, and more salient for business angel financing than for investment by independent VC funds or corporate VCs. For founders of academic startups, our results imply that acquiring public support might enhance the chances of attracting follow-on financing.

The signal of institutional governance in early‐stage financing for university spinoffs

Andrea Belz, Alexandra Graddy‐Reed, Fernando Zapatero — Mon, 14 Jul 2025 00:54:12 -0700

Abstract

Research Summary

University spinoffs (USOs) translate scientific advancement to economic gains, but the role of the university's governance as a public or private institution is infrequently explored. With a novel dataset of academic entrepreneurs with National Science Foundation I-Corps training, we examine institutional governance as a fundraising signal. We demonstrate how angel investors and venture capitalists (VCs) show a preference for private USOs. However, with different investment objectives, the groups conduct distinct sensemaking that weighs this cue differently. For angels, industry moderates the effect such that they prefer private university life science firms to public USOs. However, industry mediates the effect for VCs, who prefer life sciences to engineering. We describe this variation as mixed salience—when a signal yields differences in decision-making for distinct audiences.

Managerial Summary

University spinoffs (USOs) are important for economic growth, but little is known about differences between USOs from public and private universities. We study how angel investors and venture capitalists (VCs) fund USOs of public and private schools. These two investor groups make funding decisions with different priorities and approaches. Both groups appear to prefer private universities. A deeper look reveals that angel investors prefer private university life science teams to the public university counterparts. On the other hand, VCs prefer life sciences teams to engineering teams—and life sciences teams are more likely to come from private schools. Evidently, the two investor audiences respond to the public/private distinction in different ways.

Local labor market frictions and platform‐based entrepreneurship

Ruiqing Cao, Yifan Lyu — Sun, 08 Jun 2025 22:40:51 -0700

Abstract

Research Summary

Building on prior research about the heterogeneous impact of labor shocks on individuals' propensity to start businesses, we explore how local labor market frictions affect individuals' selection into platform-based entrepreneurship. Combining detailed data from a large online retail platform with sectoral employment statistics across labor market areas in the United States, we show that entrepreneurs entering the platform during larger local employment declines in related sectors developed more effective customer strategies and maintained stronger sales performance. These entrepreneurs focused more on customer appeal, matched social media channels with the platform's predominant user base, and lowered prices over time.

Managerial Summary

This article examines how local labor market frictions in sectors relevant to a digital platform shape the heterogeneous entry of individuals into platform-based entrepreneurship—a class of entrepreneurship that became popular with “creator economy” business models where individuals rely on digital infrastructures to access potential customers and monetize their creative labor. We find that entrepreneurs who started platform-based businesses in deteriorating local employment conditions generated significantly higher sales by being more attuned to customers' needs and wants. We show that these entrepreneurs emphasized customer-related activities, chose more effective social media channels, and set lower prices after operating for a few periods. Our findings highlight the importance of customer-related competitive advantages in platform-based entrepreneurship.

Integrating multimodal data and machine learning for entrepreneurship research

Yash Raj Shrestha, Vivianna Fang He — Thu, 29 May 2025 00:00:00 -0700

Abstract

Research Summary

Extant research in neuroscience suggests that human perception is multimodal in nature—we model the world integrating diverse data sources such as sound, images, taste, and smell. Working in a dynamic environment, entrepreneurs are expected to draw on multimodal inputs in their decision making. However, extant research in entrepreneurship has largely focused on how entrepreneurs or investors develop insights from data in a single mode. A few studies that have used a multimodal approach either simplify the multimodal data (MMD) into a few constructs or manually analyze the data without fully utilizing their potential. Such oversimplification limits the insights that can be gained from MMD. In this paper, we offer a framework to guide researchers to analyze and integrate MMD, capturing various cues embedded in the entrepreneurial process. We illustrate how applying machine learning algorithms to MMD can engender a robust, reliable, and scalable approach for researchers to effectively capture the elusive yet critical aspects of entrepreneurial phenomena. We also curate a set of data and algorithm resources for researchers interested in leveraging MMD in their studies.

Managerial Summary

Entrepreneurs operate in fast-paced and complex environments where success often relies on the ability to make sense of diverse and rich information, which ranges from explicit observations (e.g., what they see and hear) to more subtle contextual cues. Yet, most entrepreneurship research focuses on analyzing data in a single mode, such as only texts or numbers. Our research highlights the importance of embracing multimodal data (MMD) that combines various formats like audio, image, video, and text, to better understand and explain entrepreneurial decision-making. We introduce a practical framework and a set of machine learning techniques that help managers and researchers alike harness the richness of multimodal data. Rather than simplifying or manually analyzing multimodal data, our approach allows for scalable, systematic, and reliable insights into the entrepreneurial process. For practitioners, this means better tools for evaluating pitches, tracking team dynamics, or sensing market trends in real time. To support adoption, we also provide a curated set of MMD sources and algorithms that organizations can leverage to make more informed strategic decisions.

Cost‐effectively leveraging digital capital to develop means for effectual decision‐making

Hyunkyu Park, Yining Luo, Yi Yang — Thu, 29 May 2025 00:00:00 -0700

Abstract

Research Summary

Extant studies suggest that a particular set of means, once in place, prompt entrepreneurs to enact effectual decision-making. However, little is known about how such effectual means are developed, particularly when entrepreneurs' primary means are digital capital rather than pre-existing effectual means. To address this gap, our qualitative research examines an emerging phenomenon in which young people engage in side-hustling through social media. Our findings reveal that entrepreneurs develop effectual means by leveraging digital capital through browsing, consulting, and imitating. This developmental process is significantly streamlined by digital capital's generativity, recommendability, and multimodality, with its cost-effectiveness dynamically assessed to determine the continuity of development. Drawing on these findings, we discuss implications for effectuation theory and entrepreneurship studies.

Managerial Summary

Entrepreneurs are known to rely on their established means for effectual decision-making. However, little is known about how entrepreneurs make effectual decisions when they possess digital capital but have underdeveloped means for effectuation. This study explores how young side-hustlers on social media build means for effectuation through browsing, consulting, and imitating. The generativity, recommendability, and multimodality of digital capital significantly enhance this developmental process, while cost-effectiveness is continuously assessed to determine whether to proceed. We develop a process model that illustrates how entrepreneurs leverage and optimize digital capital to drive effectuation in the digital age.

Micro‐transitions and work identity: The case of academic entrepreneurs

Marouane Bousfiha, Henrik Berglund — Wed, 21 May 2025 23:24:51 -0700

Abstract

Research Summary

This paper examines how academic entrepreneurs—scientists who found research-based startups while remaining in academia—construct and sustain their professional identities amid frequent transitions between academic and entrepreneurial roles. Drawing on 27 interviews with Swedish academic entrepreneurs, we show that hybrid identities are not simply the result of reconciling abstract role categories but are shaped through the material and practical organization of everyday work. We introduce the concept of professional micro-transitions as a key site of identity formation and argue that material artifacts and routines play a central role in this process. This study contributes to the literatures on identity work, role transitions, and academic entrepreneurship by offering a granular, materially grounded account of how hybrid identities are enacted and sustained in practice.

Managerial Summary

This article investigates how academic entrepreneurs—university scientists who create startups to commercialize research results while remaining in academia—manage to build a hybrid professional identity when frequently switching back and forth between their jobs as academics and for-profit entrepreneurs. The findings reveal how they creatively find cross-fertilizing effects between their academic and entrepreneurial work tasks. This in turn allows them to reevaluate and extend their professional identity. For universities, incubators, and policymakers, this study suggests that supporting academic entrepreneurship is not just about funding or IP policies. It also requires recognizing the practical identity work involved and creating flexible environments that allow scientists to integrate both roles in meaningful ways.

What entrepreneurial decisions enable the breeding of digital platform unicorns?

Fri, 16 May 2025 00:00:00 -0700

Abstract

Research Summary

Digital platforms have revolutionized business sectors; however, despite their significant success, platform unicorns remain rare. While extensive research exists on digital platform growth, it is uncertain what entrepreneurial decisions achieve unicorn status. We address the research question of what combination of complementary entrepreneurial decisions increases and decreases the likelihood of becoming a platform unicorn. The study examines 125 digital mental health platform ventures, including 12 unicorns, using the Dealroom database and decision tree methodology. We provide combinations of complementary decisions concerning fundraising timing, funding sources, digital technologies, and business model choices that affect a platform venture's probability of becoming a unicorn. The study offers decision profiles for navigating the uncertainties of the digital age. We discuss implications for strategic entrepreneurship and a judgment-based approach.

Managerial Summary

In the digital age, achieving unicorn status depends on the right combination of complementary decisions about fundraising timing, funding sources, digital technology, and business model choices. Entrepreneurs dealing with uncertainty frequently rely on their intuition to make such decisions. Our research complements intuition with evidence that can now be obtained by deploying artificial intelligence tools like decision trees and highlights complementary decision profiles that have a higher likelihood of becoming unicorns, such as profiles with early-stage funding, no government funding, and deep tech serving the B2B market. Conversely, we identify combinations with less than 1% success rates, indicating failed judgments. Research insights can help entrepreneurs and investors make better-informed decisions to enhance mental health platform venture success and be aware of possible failure.

Do digital platforms create entrepreneurial opportunities? Evidence from marginal areas

Francesco Luigi Milone, Emilio Paolucci, Elisabetta Raguseo — Sat, 10 May 2025 04:29:49 -0700

Abstract

Research Summary

This article enters the debate on the effects of digital platforms on entrepreneurial opportunities by estimating whether the entry of a home-sharing platform shapes entrepreneurial decisions in marginal areas. We add a novel perspective to the literature, as we contend that when economic conditions are unfavorable, digital platforms, acting as External Enablers, stimulate entrepreneurship. We test these arguments on the unique setting of 270 Italian Borghi and the entry of Airbnb, employing a staggered difference-in-difference design. We show that, following the entry of Airbnb, the entrepreneurial activity of the surrounding area increases, with effects that are heterogeneous across sectors and stronger in more depressed areas. We also show qualitative–quantitative evidence of the mechanisms explaining these effects. Finally, we discuss theoretical contributions to digital-entrepreneurship literature and implications.

Managerial Summary

This study provides implications for both prospective entrepreneurs and policymakers willing to incentivize the creation of new businesses in marginal and remote areas. First, we show that, in marginal locations, digital platforms act as facilitators for entrepreneurs facing a complex and risky decision to embark on new business activities, particularly, if these are along the scope of the platform. This happens because platforms create demand—if not existing—and reduce entry and operating costs by internalizing specific business processes. Second, we offer a clear recommendation to policymakers. We show that digital platforms represent an indirect and effective way of pursuing the development of entrepreneurship in marginal areas. This aspect is relevant as scholars have demonstrated that direct approaches are not always effective.

Assessing the impact of the pandemic on digital spin‐offs at universities: Theory and evidence from the United Kingdom

David Audretsch, Maksim Belitski, Maribel Guerrero, Donald S. Siegel — Sat, 10 May 2025 04:20:12 -0700

Abstract

Research Summary

There is limited evidence on how university spin-offs (USOs) respond to external crises. We fill this gap by assessing how UK digital USOs responded to the recent COVID-19 pandemic. Specifically, we examine how USOs' capabilities (scaling-up, fundraising, and intellectual property) and access to their parent university's financial resources/infrastructures interact intertemporally to address demand and supply challenges associated with the pandemic. Our analysis revealed that the interplay of (a) USOs' scaling-up and fundraising capabilities and (b) USOs' fundraising capabilities and university parent's support infrastructure constituted the best strategy for developing intertemporal resilience during the crisis.

Managerial Summary

We investigate the impact of the COVID-19 pandemic on digital USOs. Assuming support from parent universities, we explored how their scaling-up efforts, fundraising efforts, and intellectual property addressed demand and supply challenges during these unprecedented times. First, USOs that could scale up while fundraising were more likely to sustain operations and satisfy demand through various stages of the pandemic. Second, USOs with fundraising capabilities and parent university support demonstrated greater resilience. These findings suggest valuable insights for CEOs of USOs and their parent universities in handling external crises.

Startup innovation in the digital era

Jung H. Kwon, Shu Deng, Haemin Dennis Park — Wed, 30 Apr 2025 21:45:08 -0700

Abstract

Research Summary

Because invention activities involve accessing, identifying, and recombining relevant prior art, startups confront significant search cost and effort. Using Google Patents's 2006 digitization of inventive records as a natural experiment, we examine how digitization affects the directionality and nature of entrepreneurial innovation. We analyze 17,664 US-based startups in the life sciences industry and find that digitization increases the quantity and quality of prior art used as innovation inputs and those of patent applications generated as innovation outputs. Moreover, our findings indicate that digitization enables startups to transcend local searches for relevant inputs and increase both their entry into new technological domains and output utility. Our study sheds new light on how digitization and its search functionalities reshape startup innovation in the digital era.

Managerial Summary

Google Patents's 2006 digitization of inventive records transformed entrepreneurial innovation in the US Analyzing 17,664 life sciences startups, we find that digitization enhances search efficiency by alleviating constraints in accessing knowledge while boosting search effectiveness by improving inventive experimentation as online search features make identifying and utilizing relevant external knowledge timelier and more precise. Digitization enables startups to utilize greater volume, higher quality, and more diverse knowledge from prior art while also reinforcing invention outcomes, expanding into new technological domains, and generating more impactful inventions. This study highlights how digitization democratizes access to knowledge and improves search effectiveness and entrepreneurial experimentation, ultimately transforming the startup innovation landscape. Overall, digitization disproportionately benefits startups in areas geographically remote from physical knowledge repositories.

How digital platforms affect local entrepreneurial activities: Evidence from the staggered entry of craigslist

Daehyun Kim, Yongwook Paik, Namil Kim — Wed, 30 Apr 2025 00:00:00 -0700

Abstract

Research Summary

Access to markets is critical for entrepreneurial success, yet many face significant barriers. This study argues that digital platforms functioning as peer-to-peer marketplaces can facilitate entrepreneurial activity by improving market access for new ventures. Using the staggered entry of Craigslist into various markets, we find that Craigslist's entry increased local entrepreneurial activities, especially in low-income regions. Moreover, individuals from lower-income households, as well as Black and immigrant communities, were more likely to create new ventures following Craigslist's entry. Firms founded after Craigslist's entry were also smaller in size, potentially reflecting more efficient management, and primarily operated in B2C rather than B2B sectors. This study highlights how multisided platforms can empower individuals with limited market access and resources, ultimately democratizing entrepreneurship in the digital age.

Managerial Summary

Access to markets is essential for entrepreneurs to succeed, yet many face significant challenges in starting and growing their businesses. This study demonstrates how digital platforms like Craigslist can help overcome these barriers and create opportunities for more people to participate in entrepreneurship. When Craigslist expanded to new locations, it increased small business activity, particularly in low-income areas. Individuals from lower-income households, as well as Black and immigrant communities, were especially likely to benefit from it when starting businesses. These businesses were smaller in size, potentially indicating more efficient management and more B2C-focused operations. This research underscores how digital platforms can make markets more accessible for traditionally disadvantaged groups, fostering a more inclusive entrepreneurial ecosystem.

Are non‐economic goals and financial performance friends or foes in hybrid ventures? A duality perspective on academic spin‐offs

Mon, 20 Jan 2025 00:07:30 -0800

Abstract

Research Summary

This study draws on the behavioral theory of the firm and a duality perspective to investigate the impact of founders' focus on academic goals on the financial performance of academic spin-offs (ASOs)—a specific type of hybrid venture. We theorize that such relationship follows an inverse U-shaped curve and is moderated by the degree of academic ownership. These hypotheses are tested using a sample of 179 Italian ASOs. Our findings indicate that when academic ownership is low, the relationship displays an inverted U-shape. Moreover, as academic ownership increases, the relationship flattens and eventually shifts to a U-shape. These results challenge the prevailing notion of inherent conflicts between economic and non-economic logics in hybrid ventures, demonstrating when focusing on non-economic (e.g., academic) goals enhances financial outcomes.

Managerial Summary

Academic spin-offs (ASOs) play a pivotal role in science commercialization and often pursue academic goals due to their academic origins. However, the extent to which founders' focus on academic goals benefits or hinders ASOs' financial performance has remained largely underexamined. In this study of 179 Italian ASOs, we investigate the relationship between a focus on academic goals and firm performance. Our findings reveal that at lower levels of academic ownership, a moderate focus on academic goals is optimal for ASOs' financial performance. Conversely, at higher levels of academic ownership, either a low or high focus on academic goals proves optimal for financial performance. These insights can help practitioners improve ASO performance by aligning goal and ownership structures.