Entrepreneurial bricolage and its effects on new venture growth and adaptiveness in an emerging economy

Abstract

Driven by boosting economic developments, emerging economies are experiencing massive institutional changes in regulatory structures and market systems. Coupled with fierce market competition and reforms, serious challenges for the sustainable development of new ventures are created due to smallness and newness. This study adds knowledge to current research concerning how new ventures grow and adapt to the rapid environmental shifts in emerging economies by exploring the effects of entrepreneurial bricolage. Specifically, this study finds that entrepreneurial bricolage has a positive impact on both new venture growth and adaptiveness. Further, institutional void has contradicting effects on these two relationships. The effectiveness of entrepreneurial bricolage on new venture growth is stronger in a context with serious institutional void, while the effectiveness of entrepreneurial bricolage on new venture adaptiveness is weaker in a context with serious institutional void. These findings not only enrich our knowledge on the implications of entrepreneurial bricolage, but also advance our understanding of the emerging economy context.

Entrepreneurial orientation and new venture performance in emerging markets: the mediating role of opportunity recognition

“…Many emerging economies are confronted with immense challenges such as uncertain markets (Czakon et al 2020;Yu et al 2020), globalization (Fatima 2017, new market systems (Alvarez et al 2015) and intense competition (Chari and Banalieva 2015). As compared to developed markets, new ventures suffer from a higher failure ratio due to institutional challenges.…”

“…Anwar and Ali Shah (2020) report that more than 50% of new ventures in Pakistan do not survive in the long run. These institutional challenges impinge on the growth of small and medium enterprises (SMEs) largely due to the liability of newness and smallness, which limits their ability to adapt rapidly to changing business conditions (Yu et al 2020). Consequently, the ability of these firms to exploit new opportunities in order to survive the competition is impeded (Zhou and Li 2010;Chen et al 2020).…”

“…Consequently, the ability of these firms to exploit new opportunities in order to survive the competition is impeded (Zhou and Li 2010;Chen et al 2020). Thus, bringing to the fore the issue of performance and survival of newly established SMEs in emerging economies (Anwar and Ali Shah 2020;Yu et al 2020;Guo et al 2019a).…”

IT-based product innovation strategies for small firms

“…Therefore, our work also adds to the IT literature (e.g. Bharadwaj, 2000;Dehning & Stratopoulos, 2003;Ravichandran & Lertwongsatien, 2005;Wang, Liang, Zhong, Xue & Xiao, 2012) regarding the function of IT-related capabilities to provide a basis for transforming managerial strategic intention into actual business strategy involving the use of IT (Yu et al, 2019).…”

“…Small firm managers need to devote considerable time and effort in utilizing IT to enhance firms' capacity of acquiring and analyzing market information (i.e. ITMA) and speeding up the firms' business processes (ITFR) (Yu et al, 2019). More specifically, small firm managers can use the IT system to obtain and analyze customer data (e.g., service requests, browsing histories, etc.)…”