The Role of Accelerator Designs in Mitigating Bounded Rationality in New Ventures

July 23, 2018

Using a nested multiple-case study of participating ventures, directors, and mentors of eight of the original U.S. accelerators, we explore how accelerators’ program designs influence new ventures’ ability to access, interpret, and process the external information needed to survive and grow. More

Evidence-Based Economic Development Policy

July 11, 2018

Investing in economic capabilities that enhance firms' ability to innovate and compete on the world stage has become an important national and local policy focus. This type of investment occurs in specific communities and jurisdictions, often providing the foundation for regional economic development. More

Entangled Decisions: Knowledge Interdependencies and Terminations of Patented Inventions in the Pharmaceutical Industry

June 28, 2018

This study explores the role of knowledge interdependencies on the termination of patented inventions. Termination refers to the abandonment of inventive efforts that are no longer deemed promising. We argue that high interdependencies between an inventive effort and the other inventions in the same research program will increase the cognitive burden on managers and decrease the likelihood of termination. We focus on two such heuristics: interdependencies of an invention with those in other research programs and the level of external competition in the research program.

Breaking the Waves: Innovating at the Intersections of Economic Development

June 26, 2018

State and local economic development is often conceptualized as a series of successive waves, with each wave representing distinct policy priorities. In this study, we rework the standard wave metaphor to recognize the gains for regional economies when practitioners reach across established boundaries to work together to create a strategy mix. More

Status in a Strange Land: Context-Dependent Value of Status in Cross-Border Venture Capital

June 25, 2018

While recent literature has depicted status as an intangible asset that is firm‐specific and mobile, we have a limited understanding of whether status confers advantage in a way similar to other intangible assets. This study examines the macro‐structural contingencies that influence the marginal value of firm status as firms expand to new markets. Building on the literatures on status and social approval assets, as well as globalization and international management, we hypothesize that two conditions influence how valuable home‐country status will be in a given host country: the interconnectedness of the home and host countries, and their relative position in the global network. We test our hypotheses in a study of 187 venture capital (VC)‐backed biotechnology ventures in 19 countries between 1990 and 2006. More

Fluid Teams and Knowledge Retrieval: Scaling Service Operations

June 22, 2018

In this paper, we develop a multilevel model of knowledge retrieval in teams to explore how individuals on the periphery of knowledge networks—because of their inexperience, location, lack of social capital, gender, or role—access knowledge from such a knowledge repository. More

Do Business Ecosystems See Color?

June 13, 2018
Article • Urban Investment Strategies Center

This article describes an American community survey and a survey of business owners of which the data are merged to assess the experiences of minority- versus white-owned small businesses between 2007 and 2012. This is highlighted due to it being a period encompassing the worst economic downturn since The Great Depression. White firms declined while minority firms grew rapidly. Despite recent efforts to create inclusive entrepreneurial and business ecosystems, however, minority business owners made little progress toward achieving equity or parity with white business owners. Policy prescriptions and implications for future research are discussed. More

Capability Reputation, Character Reputation, and Exchange Partners’ Reactions to Adverse Events

June 11, 2018

To investigate when a firm’s reputation affects its exchange partners’ responses to adverse events, we distinguish between two types of reputation identified in prior work, capability reputation and character reputation, and present arguments for differences in their effects on exchange with potential and current exchange partners. Building on theory regarding uncertainty in exchange, we propose that potential exchange partners pay more attention to a firm's capability reputation than its character reputation in the wake of adverse events. Furthermore, we propose that the buffering effects of capability reputation and character reputation will be significantly reduced when the adverse events are caused by factors within the firm’s control. We find support for our arguments in an analysis of interstate gas transmission pipeline accidents in the United States from 2004 to 2013. More

Never Stop Learning: Stay Relevant, Reinvent Yourself, and Thrive

June 05, 2018

In Never Stop Learning, behavioral scientist and operations expert Bradley R. Staats describes the principles and practices that comprise dynamic learning and outlines a framework to help you become more effective as a lifelong learner. Replete with the most recent research about how we learn as well as engaging stories that show how real learning happens, Never Stop Learning will become the operating manual for leaders, managers, and anyone who wants to keep thriving in the new world of work. More

How Do Financial Expertise and Networks Affect Investing? Evidence from the Governance of University Endowments

May 30, 2018
• Working Paper • Institute for Private Capital

Using the unique laboratory of university endowments, we study the effects of expertise and networks on investment performance. Using detailed information on more than 11,000 unique board members for 579 university endowments, we show that the financial expertise of an endowment’s governing board is positively correlated with allocations to alternative investments and higher total returns. The type of expertise matters as elements appear unique to particular subsets of alternatives, such as private equity and venture capital, which are more difficult to analyze and manage than traded public securities. Further, we find that endowments whose board members have extensive networks of investment professionals also invest significantly more in these asset classes. With respect to returns, we find that endowments benefit from both higher allocations to private assets and, in some cases, selection of high performing managers. More