The lean startup method: Early‐stage teams and hypothesis‐based probing of business ideas

Leatherbee, Michael; Katila, Riitta

doi:10.1002/sej.1373

Cited by 128 publications

(86 citation statements)

References 72 publications

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“…On a higher level of abstraction, we extend current knowledge and showcase that BA support startups develop mental representations of the unstructured problems they face; as shown, a start-up can use BA insights to think through the collateral consequences of the alternative scenarios, which facilitates crafting solutions and strategies for addressing unstructured problems, of which project selection and prioritisation are only examples. While this approach of learning-by-thinking has been criticised for delaying the launching of innovation endeavours, especially when compared to the lean start up method or learning-by-doing (Leatherbee & Katila, 2020), our findings show otherwise. Drawing from BA to play out the alternative scenarios for critical choices around project selection and prioritisation reduces the risks for start-ups, especially when the environmental conditions may pose an existential threat to the business sustainability and the scarcity of resources do not allow learning from mistakes.…”

Section: Theoretical Contributionscontrasting

confidence: 71%

Making sense of business analytics in project selection and prioritisation: insights from the start-up trenches

Zamani

Griva

Spanaki

et al. 2021

ITP

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PurposeThe study aims to provide insights in the sensemaking process and the use of business analytics (BA) for project selection and prioritisation in start-up settings. A major focus is on the various ways start-ups can understand their data through the analytical process of sensemaking.Design/methodology/approachThis is a comparative case study of two start-ups that use BA in their projects. The authors follow an interpretive approach and draw from the constructivist grounded theory method (GTM) for the purpose of data analysis, whereby the theory of sensemaking functions as the sensitising device that supports the interpretation of the data.FindingsThe key findings lie within the scope of project selection and prioritisation, where the sensemaking process is implicitly influenced by each start-up's strategy and business model. BA helps start-ups notice changes within their internal and external environment and focus their attention on the more critical questions along the lines of their processes, operations and business model. However, BA alone cannot support decision-making around less structured problems such as project selection and prioritisation, where intuitive judgement and personal opinion are still heavily used.Originality/valueThis study extends the research on BA applied in organisations as tools for business development. Specifically, the authors draw on the literature of BA tools in support of project management from multiple perspectives. The perspectives include but are not limited to project assessment and prioritisation. The authors view the decision-making process and the path from insight to value, as a sensemaking process, where data become part of the sensemaking roadmap and BA helps start-ups navigate the decision-making process.

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Section: Theoretical Contributionscontrasting

confidence: 71%

Making sense of business analytics in project selection and prioritisation: insights from the start-up trenches

Zamani

Griva

Spanaki

et al. 2021

ITP

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“…More recent work emphasizes the significance of a repertoire of learning processes for creating novel strategies in high-uncertainty markets. For example, Leatherbee and Katila (2020) note how “lean startups” blend trial-and-error, experimentation, and bricolage. Similarly, McDonald and Eisenhardt (2020) study five fintech ventures that address the same promising opportunity.…”

Section: Sc View and High-uncertainty Marketsmentioning

confidence: 99%

Strategy and Uncertainty: Resource-Based View, Strategy-Creation View, and the Hybrid Between Them

Furr

Eisenhardt

2021

Journal of Management

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The resource-based view (RBV) makes a significant contribution to strategy by explaining the relationship between resources and firm performance. Particularly in low uncertainty markets, executives have the foresight and time to build strategically valuable resources in current markets and leverage them into related markets. RBV is also relevant for understanding strategies for market entry, extending the value of technology resources, and broadening the locus of resources within ecosystems. Conversely, in high uncertainty markets like nascent or disrupted ones, RBV seems less germane. Resources may not yet exist or their value (and rarity) may be indeterminate (or changing). Here, we contribute the Strategy Creation (SC) view—joining strategizing by doing, thinking, and shaping. It offers a strategic logic that fits highly uncertain markets. Finally, we contribute the insight that RBV and SC are complements under moderate uncertainty, such as growth markets and technology transitions. Overall, we propose that uncertainty forms a crucial boundary condition for RBV that distinguishes between qualitatively different strategic logics.

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“…Much of this complexity is rooted in the dilemma of how to balance theory and practice (Kyrö, 2018; Martin et al, 2013; Zaring et al, 2019). While entrepreneurship education has largely been practice-oriented (Hägg and Gabrielsson, 2020), recent studies have shown that entrepreneurs who test their ideas more scientifically often create better performing ventures (Camuffo et al, 2019; Leatherbee and Katila, 2020; McDonald and Eisenhardt, 2019). Much of this comparative success is attributed to the founders employing a more balanced approach to theory and practice (Felin et al, 2019)…”

Section: Entrepreneurship Education: a Balancing Actmentioning

confidence: 99%

“…Indeed, while widely accepted in many entrepreneurship curricula around the world, these Lean Startup methodologies have met with scrutiny in recent literature on management, organization theory and entrepreneurship, not least concerning their use of assumptions and hypotheses (cf. Camuffo et al, 2019;Ladd, 2016Ladd, , 2019Leatherbee and Katila, 2020;McDonald and Eisenhardt, 2019).…”

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confidence: 99%

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Theory-driven methods for practical entrepreneurship: Hypothesis testing in entrepreneurship education

Gifford

2021

Industry and Higher Education

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This account of practice focuses on an augmented Customer Development methodology which the author adopted for a module in a Master’s program in Entrepreneurship at a Swedish business school. The article details the techniques underlying this augmented methodology, and the journey toward its implementation. By conceptualizing “hypotheses” as testable statements linking together blocks of the Business Model Canvas, and “assumptions” as students’ assessments of the contents of each block at the outset of the process, the author provides a more pedagogical as well as a more scientifically and theoretically consistent model. Its effectiveness was assessed through discussing these changes with students who had recently taken the course prior to the author’s appointment as teacher. Adaptations such as this could provide an effective method for teachers who want to update an existing course, or who have recently been appointed to a new course focusing on practical aspects of entrepreneurship. Alternatively, it could help to inspire teachers who wish to augment course content to draw more on coherent theory building and good scientific practice, as are most often suited to Master’s level studies, but without radically altering the lesson plan, syllabus or reading material.

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The lean startup method: Early‐stage teams and hypothesis‐based probing of business ideas

Cited by 128 publications

References 72 publications

Making sense of business analytics in project selection and prioritisation: insights from the start-up trenches

Making sense of business analytics in project selection and prioritisation: insights from the start-up trenches

Strategy and Uncertainty: Resource-Based View, Strategy-Creation View, and the Hybrid Between Them

Theory-driven methods for practical entrepreneurship: Hypothesis testing in entrepreneurship education

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