IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2017i1p56-d124563.html
   My bibliography  Save this article

Exploratory Orientation, Business Model Innovation and New Venture Growth

Author

Listed:
  • Hao Zhang

    (School of Business Administration, Northeastern University, Shenyang 110169, China)

  • Xinbo Sun

    (School of Business Administration, Northeastern University, Shenyang 110169, China)

  • Chan Lyu

    (School of Business, Macau University of Science and Technology, Taipa, Macau 999078, China)

Abstract

Why are some start-ups more successful than other companies? In view of this question, this paper deconstructs the growth mechanism of the present new Chinese ventures from the perspective of Internet entrepreneurship and points out that exploratory orientation and business model innovation play an important role in the new ventures growth process. Based on this, through the investigation of 210 start-ups in China, the research found that: (1) exploratory orientation is in a positive relationship with the growth of new ventures; (2) business model innovation plays a mediated role between exploratory orientation and new business growth; (3) Internet embeddedness is found as a moderator in the relationship between exploratory orientation and the growth of new ventures. This finding will not only help further deepen the new research in the new venture growth process but also help to further expand exploratory orientation, business model innovation and the important role of the Internet embeddedness in the growth of new ventures.

Suggested Citation

  • Hao Zhang & Xinbo Sun & Chan Lyu, 2017. "Exploratory Orientation, Business Model Innovation and New Venture Growth," Sustainability, MDPI, vol. 10(1), pages 1-15, December.
    • Handle: RePEc:gam:jsusta:v:10:y:2017:i:1:p:56-:d:124563
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/1/56/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/1/56/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    2. Johan Wiklund & Dean A. Shepherd, 2011. "Where to from Here? EO-as-Experimentation, Failure, and Distribution of Outcomes," Entrepreneurship Theory and Practice, , vol. 35(5), pages 925-946, September.
    3. Sexton, Donald L. & Upton, Nancy B. & Wacholtz, Larry E. & McDougall, Patricia P., 1997. "Learning needs of growth-oriented entrepreneurs," Journal of Business Venturing, Elsevier, vol. 12(1), pages 1-8, January.
    4. Gerard George & Adam J. Bock, 2011. "The Business Model in Practice and its Implications for Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 35(1), pages 83-111, January.
    5. Zi-Lin He & Poh-Kam Wong, 2004. "Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis," Organization Science, INFORMS, vol. 15(4), pages 481-494, August.
    6. Tina C. Ambos & Julian Birkinshaw, 2010. "How Do New Ventures Evolve? An Inductive Study of Archetype Changes in Science-Based Ventures," Organization Science, INFORMS, vol. 21(6), pages 1125-1140, December.
    7. Bat Batjargal & Michael Hitt & Anne Tsui & Jean-Luc Arregle & Justin Webb & Toyah Miller, 2013. "Institutional Polycentrism, Entrepreneurs' Social Networks, and New Venture Growth," Post-Print hal-02313079, HAL.
    8. Yoshihiro Eshima & Brian S. Anderson, 2017. "Firm growth, adaptive capability, and entrepreneurial orientation," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 770-779, March.
    9. Christoph Zott & Raphael Amit, 2008. "The fit between product market strategy and business model: implications for firm performance," Strategic Management Journal, Wiley Blackwell, vol. 29(1), pages 1-26, January.
    10. Patricia Phillips McDougall & Jeffrey G. Covin & Richard B. Robinson & Lanny Herron, 1994. "The effects of industry growth and strategic breadth on new venture performance and strategy content," Strategic Management Journal, Wiley Blackwell, vol. 15(7), pages 537-554, September.
    11. Bat Batjargal & Michael Hitt & Anne Tsui & Jean-Luc Arregle & Justin Webb & Toyah Miller, 2013. "Institutional Polycentrism, Entrepreneurs' Social Networks, and New Venture Growth," Post-Print hal-02276709, HAL.
    12. Auh, Seigyoung & Menguc, Bulent, 2005. "Balancing exploration and exploitation: The moderating role of competitive intensity," Journal of Business Research, Elsevier, vol. 58(12), pages 1652-1661, December.
    13. Christoph Zott & Raphael Amit, 2007. "Business Model Design and the Performance of Entrepreneurial Firms," Organization Science, INFORMS, vol. 18(2), pages 181-199, April.
    14. B. Demil & X. Lecocq, 2010. "Business model evolution : in search of dynamic consistency," Post-Print hal-00572915, HAL.
    15. Shepherd, Dean A. & Douglas, Evan J. & Shanley, Mark, 2000. "New venture survival: Ignorance, external shocks, and risk reduction strategies," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 393-410.
    16. Bat Batjargal, 2013. "Institutional Polycentrism, Entrepreneurs??? Social Networks, And New Venture Growth," William Davidson Institute Working Papers Series wp1060, William Davidson Institute at the University of Michigan.
    17. Audretsch, David B, 1991. "New-Firm Survival and the Technological Regime," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 441-450, August.
    18. Julie M. Hite & William S. Hesterly, 2001. "The evolution of firm networks: from emergence to early growth of the firm," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 275-286, March.
    19. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
    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. Michael Lang, 2020. "Modern Business Model Innovation Methodologies: A Systematic Literature Review (2015-2020)," Business Management and Strategy, Macrothink Institute, vol. 11(2), pages 94-116, December.
    2. Andreja Pucihar & Gregor Lenart & Mirjana Kljajić Borštnar & Doroteja Vidmar & Marjeta Marolt, 2019. "Drivers and Outcomes of Business Model Innovation—Micro, Small and Medium-Sized Enterprises Perspective," Sustainability, MDPI, vol. 11(2), pages 1-17, January.
    3. Jihye Jeong & Juhee Kim & Hanei Son & Dae-il Nam, 2020. "The Role of Venture Capital Investment in Startups’ Sustainable Growth and Performance: Focusing on Absorptive Capacity and Venture Capitalists’ Reputation," Sustainability, MDPI, vol. 12(8), pages 1-13, April.

    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. Randhawa, Krithika & Wilden, Ralf & Gudergan, Siegfried, 2021. "How to innovate toward an ambidextrous business model? The role of dynamic capabilities and market orientation," Journal of Business Research, Elsevier, vol. 130(C), pages 618-634.
    2. Belussi, Fiorenza & Orsi, Luigi & Savarese, Maria, 2019. "Mapping Business Model Research: A Document Bibliometric Analysis," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    3. Yuan, Chun & Xue, Doudou & He, Xin, 2021. "A balancing strategy for ambidextrous learning, dynamic capabilities, and business model design, the opposite moderating effects of environmental dynamism," Technovation, Elsevier, vol. 103(C).
    4. Raphaël Maucuer & Alexandre Renaud, 2019. "Business Model Research: A Bibliometric Analysis of Origins and Trends," Post-Print hal-01918188, HAL.
    5. Yuan Jing, 2022. "The Relationship Between Business Model Innovation and Operational Performance of Incubator Enterprise," International Journal of Science and Business, IJSAB International, vol. 16(1), pages 153-191.
    6. Balboni, Bernardo & Bortoluzzi, Guido & Pugliese, Roberto & Tracogna, Andrea, 2019. "Business model evolution, contextual ambidexterity and the growth performance of high-tech start-ups," Journal of Business Research, Elsevier, vol. 99(C), pages 115-124.
    7. Oana Buliga & Christian W. Scheiner & Kai-Ingo Voigt, 2016. "Business model innovation and organizational resilience: towards an integrated conceptual framework," Journal of Business Economics, Springer, vol. 86(6), pages 647-670, August.
    8. Xuerong Li & Han Qiao & Shouyang Wang, 2017. "Exploring evolution and emerging trends in business model study: a co-citation analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(2), pages 869-887, May.
    9. Songsong Cheng & Qunpeng Fan & Yang Song, 2023. "Performance Gap and Innovation Ambidexterity: A Moderated Mediation Model," Sustainability, MDPI, vol. 15(5), pages 1-22, February.
    10. Zhang, Yimeng & Ma, Xinyu & Pang, Jianing & Xing, Hailong & Wang, Jian, 2023. "The impact of digital transformation of manufacturing on corporate performance — The mediating effect of business model innovation and the moderating effect of innovation capability," Research in International Business and Finance, Elsevier, vol. 64(C).
    11. Elias Carayannis & Stavros Sindakis & Christian Walter, 2015. "Business Model Innovation as Lever of Organizational Sustainability," The Journal of Technology Transfer, Springer, vol. 40(1), pages 85-104, February.
    12. Nason, Robert S. & Wiklund, Johan & McKelvie, Alexander & Hitt, Michael & Yu, Wei, 2019. "Orchestrating boundaries: The effect of R&D boundary permeability on new venture growth," Journal of Business Venturing, Elsevier, vol. 34(1), pages 63-79.
    13. Sarel Gronum & John Steen & Martie-Louise Verreynne, 2016. "Business model design and innovation: Unlocking the performance benefits of innovation," Australian Journal of Management, Australian School of Business, vol. 41(3), pages 585-605, August.
    14. Matthias Filser & Sascha Kraus & Matthias Breier & Ioanna Nenova & Kaisu Puumalainen, 2021. "Business model innovation: Identifying foundations and trajectories," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 891-907, February.
    15. Harry Bouwman & Mark Reuver & Marikka Heikkilä & Erwin Fielt, 2020. "Business model tooling: where research and practice meet," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(3), pages 413-419, September.
    16. Jingoo Kang & Sang‐Joon Kim, 2020. "Performance implications of incremental transition and discontinuous jump between exploration and exploitation," Strategic Management Journal, Wiley Blackwell, vol. 41(6), pages 1083-1111, June.
    17. Ronald S. Burt, 2019. "Network Disadvantaged Entrepreneurs: Density, Hierarchy, and Success in China and the West," Entrepreneurship Theory and Practice, , vol. 43(1), pages 19-50, January.
    18. Heinrichs, Simon & Walter, Sascha, 2013. "Don’t Step Into Your Parent’s Shoes – How Exploitation and Exploration Affect Spin-out Growth," EconStor Preprints 68591, ZBW - Leibniz Information Centre for Economics.
    19. Göran Roos, 2014. "Business Model Innovation to Create and Capture Resource Value in Future Circular Material Chains," Resources, MDPI, vol. 3(1), pages 1-27, March.
    20. Cinzia Battistella & Gianluca Murgia & Fabio Nonino, 2021. "Free-driven web-based business models," Electronic Commerce Research, Springer, vol. 21(2), pages 445-486, June.

    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:gam:jsusta:v:10:y:2017:i:1:p:56-:d:124563. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.