IDEAS home Printed from https://ideas.repec.org/a/eee/jbvent/v33y2018i4p493-512.html
   My bibliography  Save this article

Finding the threshold: A configurational approach to optimal distinctiveness

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S088390261730191X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusvent.2018.03.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Margaret Peteraf & Mark Shanley, 1997. "Getting To Know You: A Theory Of Strategic Group Identity," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 165-186, July.
    2. Shahzad (Shaz) Ansari & Raghu Garud & Arun Kumaraswamy, 2016. "The disruptor's dilemma: TiVo and the U.S. television ecosystem," Strategic Management Journal, Wiley Blackwell, vol. 37(9), pages 1829-1853, September.
    3. Martin R Schneider & Conrad Schulze-Bentrop & Mihai Paunescu, 2010. "Mapping the institutional capital of high-tech firms: A fuzzy-set analysis of capitalist variety and export performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 246-266, February.
    4. Garry D. Bruton & David Ahlstrom & Han–Lin Li, 2010. "Institutional Theory and Entrepreneurship: Where Are We Now and Where Do We Need to Move in the Future?," Entrepreneurship Theory and Practice, , vol. 34(3), pages 421-440, May.
    5. Stewart Thornhill & Raphael Amit, 2003. "Learning About Failure: Bankruptcy, Firm Age, and the Resource-Based View," Organization Science, INFORMS, vol. 14(5), pages 497-509, October.
    6. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    7. Fisher, Greg & Kuratko, Donald F. & Bloodgood, James M. & Hornsby, Jeffrey S., 2017. "Legitimate to whom? The challenge of audience diversity and new venture legitimacy," Journal of Business Venturing, Elsevier, vol. 32(1), pages 52-71.
    8. Bergek, Anna & Berggren, Christian & Magnusson, Thomas & Hobday, Michael, 2013. "Technological discontinuities and the challenge for incumbent firms: Destruction, disruption or creative accumulation?," Research Policy, Elsevier, vol. 42(6), pages 1210-1224.
    9. Ragin, Charles C., 2000. "Fuzzy-Set Social Science," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226702773, April.
    10. Deborah Dougherty & Trudy Heller, 1994. "The Illegitimacy of Successful Product Innovation in Established Firms," Organization Science, INFORMS, vol. 5(2), pages 200-218, May.
    11. Wesley D. Sine & Robert J. David & Hitoshi Mitsuhashi, 2007. "From Plan to Plant: Effects of Certification on Operational Start-up in the Emergent Independent Power Sector," Organization Science, INFORMS, vol. 18(4), pages 578-594, August.
    12. Magda M. Smink & Marko P. Hekkert & Simona O. Negro, 2015. "Keeping sustainable innovation on a leash? Exploring incumbents’ institutional strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 24(2), pages 86-101, February.
    13. Scott Shane, 2000. "Prior Knowledge and the Discovery of Entrepreneurial Opportunities," Organization Science, INFORMS, vol. 11(4), pages 448-469, August.
    14. van Werven, Ruben & Bouwmeester, Onno & Cornelissen, Joep P., 2015. "The power of arguments: How entrepreneurs convince stakeholders of the legitimate distinctiveness of their ventures," Journal of Business Venturing, Elsevier, vol. 30(4), pages 616-631.
    15. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
    16. William B. Gartner & Barbara J. Bird & Jennifer A. Starr, 1992. "Acting as If: Differentiating Entrepreneurial from Organizational Behavior," Entrepreneurship Theory and Practice, , vol. 16(3), pages 13-32, April.
    17. Birley, Sue, 1985. "The role of networks in the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 1(1), pages 107-117.
    18. Garud, Raghu & Gehman, Joel & Giuliani, Antonio Paco, 2014. "Contextualizing entrepreneurial innovation: A narrative perspective," Research Policy, Elsevier, vol. 43(7), pages 1177-1188.
    19. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & Eric Yanfei Zhao & Greg Fisher & Michael Lounsbury & Danny Miller, 2017. "Optimal distinctiveness: Broadening the interface between institutional theory and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 93-113, January.
    20. Rodolphe Durand & Deborah Philippe, 2011. "The impact of norm-conforming behaviors on firm reputation," Post-Print hal-00609203, HAL.
    21. Arent Greve & Janet W. Salaff, 2003. "Social Networks and Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 28(1), pages 1-22, January.
    22. Stuart, Robert W. & Abetti, Pier A., 1990. "Impact of entrepreneurial and management experience on early performance," Journal of Business Venturing, Elsevier, vol. 5(3), pages 151-162, May.
    23. David L. Deephouse, 1999. "To be different, or to be the same? It’s a question (and theory) of strategic balance," Strategic Management Journal, Wiley Blackwell, vol. 20(2), pages 147-166, February.
    24. Cliff, Jennifer E. & Jennings, P. Devereaux & Greenwood, Royston, 2006. "New to the game and questioning the rules: The experiences and beliefs of founders who start imitative versus innovative firms," Journal of Business Venturing, Elsevier, vol. 21(5), pages 633-663, September.
    25. Uriel Stettner & Dovev Lavie, 2014. "Ambidexterity under scrutiny: Exploration and exploitation via internal organization, alliances, and acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 35(13), pages 1903-1929, December.
    26. Michael L. Barnett, 2006. "Finding a Working Balance Between Competitive and Communal Strategies," Journal of Management Studies, Wiley Blackwell, vol. 43(8), pages 1753-1773, December.
    27. Tammy L. Madsen & Gordon Walker, 2017. "Competitive heterogeneity, cohorts, and persistent advantage," Strategic Management Journal, Wiley Blackwell, vol. 38(2), pages 184-202, February.
    28. repec:ucp:bkecon:9780226702766 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. McSweeney, Jordan J. & McSweeney, Kevin T. & Webb, Justin W. & Devers, Cynthia E., 2022. "The right touch of pitch assertiveness: Examining entrepreneurs' gender and project category fit in crowdfunding," Journal of Business Venturing, Elsevier, vol. 37(4).
    2. Vossen, Alexander & Ihl, Christoph, 2020. "More than words! How narrative anchoring and enrichment help to balance differentiation and conformity of entrepreneurial products," Journal of Business Venturing, Elsevier, vol. 35(6).
    3. Fredrich, Viktor & Bouncken, Ricarda B. & Tiberius, Victor, 2022. "Dyadic business model convergence or divergence in alliances? – A configurational approach," Journal of Business Research, Elsevier, vol. 153(C), pages 300-308.
    4. Jean‐François Soublière & Christi Lockwood, 2022. "Achieving cultural resonance: Four strategies toward rallying support for entrepreneurial endeavors," Strategic Management Journal, Wiley Blackwell, vol. 43(8), pages 1499-1527, August.
    5. Krzeminska, Anna & Lundmark, Erik & Härtel, Charmine E.J., 2021. "Legitimation of a heterogeneous market category through covert prototype differentiation," Journal of Business Venturing, Elsevier, vol. 36(2).
    6. Dabić, Marina & Vlačić, Bozidar & Paul, Justin & Dana, Leo-Paul & Sahasranamam, Sreevas & Glinka, Beata, 2020. "Immigrant entrepreneurship: A review and research agenda," Journal of Business Research, Elsevier, vol. 113(C), pages 25-38.
    7. Yuliya Snihur & Llewellyn D. W. Thomas & Raghu Garud & Nelson Phillips, 2022. "Entrepreneurial Framing: A Literature Review and Future Research Directions," Entrepreneurship Theory and Practice, , vol. 46(3), pages 578-606, May.
    8. Sahasranamam, Sreevas & Nandakumar, M.K., 2020. "Individual capital and social entrepreneurship: Role of formal institutions," Journal of Business Research, Elsevier, vol. 107(C), pages 104-117.
    9. Likun Cao & Ziwen Chen & James Evans, 2024. "Modularity, Higher-Order Recombination, and New Venture Success," Papers 2405.15042, arXiv.org.
    10. Zhang, Yucheng & Hou, Zhongwei & Yang, Feifei & Yang, Miles M. & Wang, Zhiling, 2021. "Discovering the evolution of resource-based theory: Science mapping based on bibliometric analysis," Journal of Business Research, Elsevier, vol. 137(C), pages 500-516.
    11. Jianhong Zhang & David L. Deephouse & Désirée van Gorp & Haico Ebbers, 2022. "Individuals’ Perceptions of the Legitimacy of Emerging Market Multinationals: Ethical Foundations and Construct Validation," Journal of Business Ethics, Springer, vol. 176(4), pages 801-825, April.
    12. Alexander C. Lewis & Arkangel M. Cordero & Rachael Xiong, 2021. "Too Red for Crowdfunding: The Legitimation and Adoption of Crowdfunding Across Political Cultures," Entrepreneurship Theory and Practice, , vol. 45(3), pages 471-504, May.
    13. Razmdoost, Kamran & Alinaghian, Leila & Linder, Christian, 2020. "New venture formation: A capability configurational approach," Journal of Business Research, Elsevier, vol. 113(C), pages 290-302.
    14. Mochkabadi, Kazem & Kleinert, Simon & Urbig, Diemo & Volkmann, Christine, 2024. "From distinctiveness to optimal distinctiveness: External endorsements, innovativeness and new venture funding," Journal of Business Venturing, Elsevier, vol. 39(1).
    15. Newaz, Md Tarique & Chandna, Vallari & Dass, Mayukh & Arnett, Dennis, 2023. "Using R-A theory and the optimal distinctiveness perspective to understand the strategic marketing approaches used by platform-based organizations: The cases of Facebook and Twitter in digital ecosyst," Journal of Business Research, Elsevier, vol. 167(C).
    16. Haessler, Philipp & Giones, Ferran & Brem, Alexander, 2023. "The who and how of commercializing emerging technologies: A technology-focused review," Technovation, Elsevier, vol. 121(C).
    17. Elco Van Burg & Joep Cornelissen & Wouter Stam & Sarah Jack, 2022. "Advancing Qualitative Entrepreneurship Research: Leveraging Methodological Plurality for Achieving Scholarly Impact," Entrepreneurship Theory and Practice, , vol. 46(1), pages 3-20, January.
    18. Hannes W. Lampe & Jan Reerink, 2021. "Know your audience: how language complexity affects impact in entrepreneurship science," Journal of Business Economics, Springer, vol. 91(7), pages 1025-1061, September.
    19. Juan Bu & Eric Yanfei Zhao & Krista J. Li & Joanna Mingxuan Li, 2022. "Multilevel optimal distinctiveness: Examining the impact of within‐ and between‐organization distinctiveness of product design on market performance," Strategic Management Journal, Wiley Blackwell, vol. 43(9), pages 1793-1822, September.
    20. Markus Reihlen & Jan‐Florian Schlapfner & Monika Seeger & Hannah Trittin‐Ulbrich, 2022. "Strategic Venturing as Legitimacy Creation: The Case of Sustainability," Journal of Management Studies, Wiley Blackwell, vol. 59(2), pages 417-459, March.
    21. Crawford, G. Christopher & Linder, Christian & Lechner, Christian & Villani, Elisa, 2024. "Outlier entrepreneurs: Nonlinear paths and novel ventures," Journal of Business Venturing Insights, Elsevier, vol. 21(C).
    22. Yoruk, Deniz E. & Bunduchi, Raluca & Yoruk, Esin & Crișan-Mitra, Catalina & Salanță, Irina-Iulia & Crișan, Emil Lucian, 2021. "Pathways to innovation in Romanian software SMEs: Exploring the impact of interdependencies between internationalisation and knowledge sources," Journal of International Management, Elsevier, vol. 27(4).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vossen, Alexander & Ihl, Christoph, 2020. "More than words! How narrative anchoring and enrichment help to balance differentiation and conformity of entrepreneurial products," Journal of Business Venturing, Elsevier, vol. 35(6).
    2. Nicola Del Sarto & Alberto Di Minin & Giulio Ferrigno & Andrea Piccaluga, 2021. "Born global and well educated: start-up survival through fuzzy set analysis," Small Business Economics, Springer, vol. 56(4), pages 1405-1423, April.
    3. Sarianna M. Lundan & Jiatao Li, 2019. "Adjusting to and learning from institutional diversity: Toward a capability-building perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(1), pages 36-47, February.
    4. Andrew D. Henderson & Melissa E. Graebner, 2020. "Entering a Golden Age of Sustained Superiority: Entrepreneurial Creation or Discovery?," Organization Science, INFORMS, vol. 31(6), pages 1432-1451, November.
    5. Boone, Christophe & Wezel, Filippo Carlo & van Witteloostuijn, Arjen, 2013. "Joining the pack or going solo? A dynamic theory of new firm positioning," Journal of Business Venturing, Elsevier, vol. 28(4), pages 511-527.
    6. Ricarda B. Bouncken & Sven M. Laudien & Viktor Fredrich & Lars Görmar, 2018. "Coopetition in coworking-spaces: value creation and appropriation tensions in an entrepreneurial space," Review of Managerial Science, Springer, vol. 12(2), pages 385-410, March.
    7. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & Eric Yanfei Zhao & Greg Fisher & Michael Lounsbury & Danny Miller, 2017. "Optimal distinctiveness: Broadening the interface between institutional theory and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 93-113, January.
    8. Denis A. Grégoire & Martin X. Noël & Richard Déry & Jean–Pierre Béchard, 2006. "Is There Conceptual Convergence in Entrepreneurship Research? A Co–Citation Analysis of Frontiers of Entrepreneurship Research, 1981–2004," Entrepreneurship Theory and Practice, , vol. 30(3), pages 333-373, May.
    9. Yuping Zeng & Thomas J. Douglas & Changqi Wu, 2013. "The Seller's Perspective on Determinants of Acquisition Likelihood: Insights from China's Beer Industry," Journal of Management Studies, Wiley Blackwell, vol. 50(4), pages 673-698, June.
    10. Jean‐François Soublière & Christi Lockwood, 2022. "Achieving cultural resonance: Four strategies toward rallying support for entrepreneurial endeavors," Strategic Management Journal, Wiley Blackwell, vol. 43(8), pages 1499-1527, August.
    11. Mochkabadi, Kazem & Kleinert, Simon & Urbig, Diemo & Volkmann, Christine, 2024. "From distinctiveness to optimal distinctiveness: External endorsements, innovativeness and new venture funding," Journal of Business Venturing, Elsevier, vol. 39(1).
    12. Sofy Carayannopoulos, 2009. "How Technology–Based New Firms Leverage Newness and Smallness to Commercialize Disruptive Technologies," Entrepreneurship Theory and Practice, , vol. 33(2), pages 419-438, March.
    13. Tang Wang & Vikas A. Aggarwal & Brian Wu, 2020. "Capability interactions and adaptation to demand‐side change," Strategic Management Journal, Wiley Blackwell, vol. 41(9), pages 1595-1627, September.
    14. Chris P. Eveleens & Frank J. Rijnsoever & Eva M. M. I. Niesten, 2017. "How network-based incubation helps start-up performance: a systematic review against the background of management theories," The Journal of Technology Transfer, Springer, vol. 42(3), pages 676-713, June.
    15. Kamini Gupta & Donal Crilly & Thomas Greckhamer, 2020. "Stakeholder engagement strategies, national institutions, and firm performance: A configurational perspective," Strategic Management Journal, Wiley Blackwell, vol. 41(10), pages 1869-1900, October.
    16. Jae Wook Yoo & Richard Reed & Shung Jae Shin & David J. Lemak, 2009. "Strategic Choice and Performance in Late Movers: Influence of the Top Management Team's External Ties," Journal of Management Studies, Wiley Blackwell, vol. 46(2), pages 308-335, March.
    17. Enrico Santarelli & Hien Tran, 2013. "The interplay of human and social capital in shaping entrepreneurial performance: the case of Vietnam," Small Business Economics, Springer, vol. 40(2), pages 435-458, February.
    18. Dimo Dimov, 2007. "Beyond the Single-Person, Single-Insight Attribution in Understanding Entrepreneurial Opportunities," Entrepreneurship Theory and Practice, , vol. 31(5), pages 713-731, September.
    19. Krzeminska, Anna & Lundmark, Erik & Härtel, Charmine E.J., 2021. "Legitimation of a heterogeneous market category through covert prototype differentiation," Journal of Business Venturing, Elsevier, vol. 36(2).
    20. Jones, Raymond J. & Barnir, Anat, 2019. "Properties of opportunity creation and discovery: Comparing variation in contexts of innovativeness," Technovation, Elsevier, vol. 79(C), pages 1-10.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbvent:v:33:y:2018:i:4:p:493-512. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusvent .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.