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Finding the threshold: A configurational approach to optimal distinctiveness

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  • McKnight, Brent
  • Zietsma, Charlene

Abstract

How can new ventures successfully distinguish themselves from competitors and incumbents while also ensuring that the new venture is seen as legitimate and appropriate? This tension is challenging. If a new venture is not seen as legitimate, usually by conforming to typical models of firms in its category, it will struggle to access resources, attract customers, satisfy regulators and curry favor from other stakeholders. This makes commercialization challenging. At the same time, entrepreneurs must convince customers, investors, and suppliers that their nascent firm is offering something new and valuable. This is the challenge of optimal distinctiveness: how different can and should firms be?

Suggested Citation

  • McKnight, Brent & Zietsma, Charlene, 2018. "Finding the threshold: A configurational approach to optimal distinctiveness," Journal of Business Venturing, Elsevier, vol. 33(4), pages 493-512.
    • Handle: RePEc:eee:jbvent:v:33:y:2018:i:4:p:493-512
    DOI: 10.1016/j.jbusvent.2018.03.004
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