IDEAS home Printed from https://ideas.repec.org/a/sae/entthe/v27y2002i1p1-28.html
   My bibliography  Save this article

Competitive Analysis and New Venture Performance: Understanding the Impact of Strategic Uncertainty and Venture Origin

Author

Listed:
  • Shaker A. Zahra
  • Donald O. Neubaum
  • Galal M. El–Hagrassey

Abstract

Effective competitive analysis (CA) is important for success in today's marketplace. CA may be particularly important to new ventures that may lack experience in their industries and knowledge of their rivals. Using survey data from 228 new ventures, this study concludes that the formality, comprehensiveness, and user orientation of CA activities are positively associated with new venture performance. Strategic uncertainty and venture origin also significantly moderate the relationship between CA and new venture performance.

Suggested Citation

  • Shaker A. Zahra & Donald O. Neubaum & Galal M. El–Hagrassey, 2002. "Competitive Analysis and New Venture Performance: Understanding the Impact of Strategic Uncertainty and Venture Origin," Entrepreneurship Theory and Practice, , vol. 27(1), pages 1-28, January.
    • Handle: RePEc:sae:entthe:v:27:y:2002:i:1:p:1-28
    DOI: 10.1111/1540-8520.t01-2-00001
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1111/1540-8520.t01-2-00001
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1540-8520.t01-2-00001?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
    ---><---

    References listed on IDEAS

    as
    1. Zahra, Shaker A., 1996. "Technology strategy and new venture performance: A study of corporate-sponsored and independent biotechnology ventures," Journal of Business Venturing, Elsevier, vol. 11(4), pages 289-321, July.
    2. Gaylen N. Chandler & Steven H. Hanks, 1994. "Founder Competence, the Environment, and Venture Performance," Entrepreneurship Theory and Practice, , vol. 18(3), pages 77-89, April.
    3. Danny Miller & Peter H. Friesen, 1983. "Strategy‐making and environment: The third link," Strategic Management Journal, Wiley Blackwell, vol. 4(3), pages 221-235, July.
    4. Charles R. Schwenk & Charles B. Shrader, 1993. "Effects of Formal Strategic Planning on Financial Performance in Small Firms: A Meta-Analysis," Entrepreneurship Theory and Practice, , vol. 17(3), pages 53-64, April.
    5. Peters, Michael P. & Brush, Candida G., 1996. "Market information scanning activities and growth in new ventures: A comparison of service and manufacturing businesses," Journal of Business Research, Elsevier, vol. 36(1), pages 81-89, May.
    6. Richard L Daft & Juhani Sormunen & Don Parks, 1988. "Chief executive scanning, environmental characteristics, and company performance: An empirical study," Strategic Management Journal, Wiley Blackwell, vol. 9(2), pages 123-139, March.
    7. George H. Rice Jr. & Richard E. Hamilton, 1979. "Decision Theory and the Small Businessman," Entrepreneurship Theory and Practice, , vol. 4(1), pages 1-9, July.
    8. Covin, Jeffrey G. & Slevin, Dennis P., 1990. "New venture strategic posture, structure, and performance: An industry life cycle analysis," Journal of Business Venturing, Elsevier, vol. 5(2), pages 123-135, March.
    9. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    10. John E. Prescott & Daniel C. Smith, 1987. "A project‐based approach to competitive analysis," Strategic Management Journal, Wiley Blackwell, vol. 8(5), pages 411-423, September.
    11. Weijian Shan, 1990. "An empirical analysis of organizational strategies by entrepreneurial high‐technology firms," Strategic Management Journal, Wiley Blackwell, vol. 11(2), pages 129-139, February.
    12. Charles W. Hofer & William R. Sandberg, 1987. "Improving New Venture Performance: Some Guidelines for Success," Entrepreneurship Theory and Practice, , vol. 12(1), pages 11-26, July.
    13. James J. Chrisman & John Leslie, 1989. "Strategic, Administrative, and Operating Problems: The Impact of Outsiders on Small Firm Performance," Entrepreneurship Theory and Practice, , vol. 13(3), pages 37-52, April.
    14. Sumantra Ghoshal & D. Eleanor Westney, 1991. "Organizing competitor analysis systems," Strategic Management Journal, Wiley Blackwell, vol. 12(1), pages 17-31, January.
    15. Sapienza, Harry J., 1992. "When do venture capitalists add value?," Journal of Business Venturing, Elsevier, vol. 7(1), pages 9-27, January.
    16. Chandler, Gaylen N. & Hanks, Steven H., 1993. "Measuring the performance of emerging businesses: A validation study," Journal of Business Venturing, Elsevier, vol. 8(5), pages 391-408, September.
    17. Zahra, Shaker A., 1996. "Technology strategy and financial performance: Examining the moderating role of the firm's competitive environment," Journal of Business Venturing, Elsevier, vol. 11(3), pages 189-219, May.
    18. Masoud Yasai-Ardekani & Paul C. Nystrom, 1996. "Designs for Environmental Scanning Systems: Tests of a Contingency Theory," Management Science, INFORMS, vol. 42(2), pages 187-204, February.
    19. Detelin S. Elenkov, 1997. "Strategic Uncertainty And Environmental Scanning: The Case For Institutional Influences On Scanning Behavior," Strategic Management Journal, Wiley Blackwell, vol. 18(4), pages 287-302, April.
    20. 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.
    21. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    22. Birley, Sue & Westhead, Paul, 1994. "A taxonomy of business start-up reasons and their impact on firm growth and size," Journal of Business Venturing, Elsevier, vol. 9(1), pages 7-31, January.
    23. Tsai, William Ming-Hone & MacMillan, Ian C. & Low, Murray B., 1991. "Effects of strategy and environment on corporate venture success in industrial markets," Journal of Business Venturing, Elsevier, vol. 6(1), pages 9-28, January.
    24. Richard L. Daft & Robert H. Lengel, 1986. "Organizational Information Requirements, Media Richness and Structural Design," Management Science, INFORMS, vol. 32(5), pages 554-571, May.
    25. Robinson, Kenneth Charles, 1999. "An examination of the influence of industry structure on eight alternative measures of new venture performance for high potential independent new ventures," Journal of Business Venturing, Elsevier, vol. 14(2), pages 165-187, March.
    26. Zahra, Shaker A. & Bogner, William C., 2000. "Technology strategy and software new ventures' performance: Exploring the moderating effect of the competitive environment," Journal of Business Venturing, Elsevier, vol. 15(2), pages 135-173, March.
    27. Cooper, Arnold C., 1993. "Challenges in predicting new firm performance," Journal of Business Venturing, Elsevier, vol. 8(3), pages 241-253, May.
    28. Richard P. Rumelt, 1991. "How much does industry matter?," Strategic Management Journal, Wiley Blackwell, vol. 12(3), pages 167-185, March.
    29. Patricia McDougall & Richard B. Robinson, 1990. "New venture strategies: An empirical identification of eight ‘archetypes’ of competitive strategies for entry," Strategic Management Journal, Wiley Blackwell, vol. 11(6), pages 447-467, October.
    30. Brush, Candida G. & Vanderwerf, Pieter A., 1992. "A comparison of methods and sources for obtaining estimates of new venture performance," Journal of Business Venturing, Elsevier, vol. 7(2), pages 157-170, March.
    Full references (including those not matched with items on IDEAS)

    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. Zahra, Shaker A., 1996. "Technology strategy and new venture performance: A study of corporate-sponsored and independent biotechnology ventures," Journal of Business Venturing, Elsevier, vol. 11(4), pages 289-321, July.
    2. Edelman, Linda F. & Brush, Candida G. & Manolova, Tatiana, 2005. "Co-alignment in the resource-performance relationship: strategy as mediator," Journal of Business Venturing, Elsevier, vol. 20(3), pages 359-383, May.
    3. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.
    4. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    5. Park, Sangmoon & Bae, Zong-Tae, 2004. "New venture strategies in a developing country: Identifying a typology and examining growth patterns through case studies," Journal of Business Venturing, Elsevier, vol. 19(1), pages 81-105, January.
    6. Robinson, Kenneth Charles, 1999. "An examination of the influence of industry structure on eight alternative measures of new venture performance for high potential independent new ventures," Journal of Business Venturing, Elsevier, vol. 14(2), pages 165-187, March.
    7. Mayer-Haug, Katrin & Read, Stuart & Brinckmann, Jan & Dew, Nicholas & Grichnik, Dietmar, 2013. "Entrepreneurial talent and venture performance: A meta-analytic investigation of SMEs," Research Policy, Elsevier, vol. 42(6), pages 1251-1273.
    8. Ralf Meinhardt & Sebastian Junge & Martin Weiss, 2018. "The organizational environment with its measures, antecedents, and consequences: a review and research agenda," Management Review Quarterly, Springer, vol. 68(2), pages 195-235, April.
    9. Gruber, Marc, 2007. "Uncovering the value of planning in new venture creation: A process and contingency perspective," Journal of Business Venturing, Elsevier, vol. 22(6), pages 782-807, November.
    10. Florin, Juan, 2005. "Is venture capital worth it? Effects on firm performance and founder returns," Journal of Business Venturing, Elsevier, vol. 20(1), pages 113-135, January.
    11. Man, Thomas W. Y. & Lau, Theresa & Chan, K. F., 2002. "The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies," Journal of Business Venturing, Elsevier, vol. 17(2), pages 123-142, March.
    12. James J. Chrisman & Alan Bauerschmidt & Charles W. Hofer, 1998. "The Determinants of New Venture Performance: An Extended Model," Entrepreneurship Theory and Practice, , vol. 23(1), pages 5-29, October.
    13. Esther Hormiga PEREZ & Rosa M. Batista CANINO, 2009. "The Importance of the Entrepreneur’s Perception of Success," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 10(5), pages 990-1010, December.
    14. Joel Bigley, 2018. "Assembling Frameworks for Strategic Innovation Enactment: Enhancing Transformational Agility through Situational Scanning," Administrative Sciences, MDPI, vol. 8(3), pages 1-20, July.
    15. Peters, Michael P. & Brush, Candida G., 1996. "Market information scanning activities and growth in new ventures: A comparison of service and manufacturing businesses," Journal of Business Research, Elsevier, vol. 36(1), pages 81-89, May.
    16. Branzei, Oana & Vertinsky, Ilan, 2006. "Strategic pathways to product innovation capabilities in SMEs," Journal of Business Venturing, Elsevier, vol. 21(1), pages 75-105, January.
    17. 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.
    18. 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.
    19. Zahra, Shaker A. & Bogner, William C., 2000. "Technology strategy and software new ventures' performance: Exploring the moderating effect of the competitive environment," Journal of Business Venturing, Elsevier, vol. 15(2), pages 135-173, March.
    20. Bamford, Charles E. & Dean, Thomas J. & McDougall, Patricia P., 2000. "An examination of the impact of initial founding conditions and decisions upon the performance of new bank start-ups," Journal of Business Venturing, Elsevier, vol. 15(3), pages 253-277, May.

    More about this item

    Statistics

    Access and download statistics

    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:sae:entthe:v:27:y:2002:i:1:p:1-28. 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: SAGE Publications (email available below). General contact details of provider: .

    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.