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How do entrepreneurs think they create value? A scientific reflection of Eric Ries’ Lean Startup approach

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  • Dennis Lyth Frederiksen

    (Aalborg University)

  • Alexander Brem

    (University of Southern Denmark)

Abstract

The means with which entrepreneurs create and capture value can be difficult to get a comprehensive picture of. Looking at the tools they use can offer insights, and in this context, the book “The Lean Startup” by Eric Ries has received a tremendous amount of attention. Supposedly, many entrepreneurs have read the book and may have followed his advice. Hence, we investigate the merits and characteristics of the methods detailed by Ries through a comparison with leading theories and empirical evidence found in the scientific literature. The results indicate that overall the methods find considerable backing and can in parts be recognized under already established constructs. Heavy use of effectuation-logic is evident throughout the book, with a clear and explicit emphasis on experimentation over long-term planning. The paper closes with a discussion of the possible broader implications of the methods and effectuation, including the potential impact on corporate strategy.

Suggested Citation

  • Dennis Lyth Frederiksen & Alexander Brem, 2017. "How do entrepreneurs think they create value? A scientific reflection of Eric Ries’ Lean Startup approach," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 169-189, March.
    • Handle: RePEc:spr:intemj:v:13:y:2017:i:1:d:10.1007_s11365-016-0411-x
    DOI: 10.1007/s11365-016-0411-x
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    4. Newbert, Scott L. & Tornikoski, Erno T. & Augugliaro, Jeff, 2020. "To get out of the building or not? That is the question: The benefits (and costs) of customer involvement during the startup process," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    5. König, Marc & Ungerer, Christina & Baltes, Guido & Terzidis, Orestis, 2019. "Different patterns in the evolution of digital and non-digital ventures' business models," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 844-852.
    6. Faiez Ghorbel & Wafik Hachicha & Younes Boujelbene & Awad M. Aljuaid, 2021. "Linking Entrepreneurial Innovation to Effectual Logic," Sustainability, MDPI, vol. 13(5), pages 1-13, March.
    7. Hegeman, Puck D. & Sørheim, Roger & Landström, Hans & Saether, Erik Andreas, 2024. "Corporate angels: A new breed of investors in the funding landscape for technology-based start-ups," Technovation, Elsevier, vol. 134(C).
    8. Antonopoulou, Katerina & Begkos, Christos, 2020. "Strategizing for digital innovations: Value propositions for transcending market boundaries," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    9. Alberto Peralta & Javier Carrillo‐Hermosilla & Fernando Crecente, 2019. "Sustainable business model innovation and acceptance of its practices among Spanish entrepreneurs," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(5), pages 1119-1134, September.
    10. Mai, Nhat Chi, 2021. "A Comprehensive Model for Idea Evaluation at Early-Stage Level (Pre-Seed)," OSF Preprints axngj, Center for Open Science.
    11. Ghezzi, Antonio, 2020. "How Entrepreneurs make sense of Lean Startup Approaches: Business Models as cognitive lenses to generate fast and frugal Heuristics," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    12. Ghezzi, Antonio, 2019. "Digital startups and the adoption and implementation of Lean Startup Approaches: Effectuation, Bricolage and Opportunity Creation in practice," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 945-960.
    13. Mansoori, Yashar & Karlsson, Tomas & Lundqvist, Mats, 2019. "The influence of the lean startup methodology on entrepreneur-coach relationships in the context of a startup accelerator," Technovation, Elsevier, vol. 84, pages 37-47.
    14. Pouria Goldasteh & Morteza Akbari & Afsaneh Bagheri & Ali Mobini, 2022. "How high-tech start-ups learn to cross the market chasm?," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 157-173, December.
    15. Krammer, Sorin, 2021. "Navigating The New Normal: Which Firms Have Adapted Better To The Covid-19 Disruption?," MPRA Paper 109485, University Library of Munich, Germany.
    16. Ebersberger, Bernd & Kuckertz, Andreas, 2021. "Hop to it! The impact of organization type on innovation response time to the COVID-19 crisis," Journal of Business Research, Elsevier, vol. 124(C), pages 126-135.
    17. Nadja Hatzijordanou & Nicolai Bohn & Orestis Terzidis, 2019. "A systematic literature review on competitor analysis: status quo and start-up specifics," Management Review Quarterly, Springer, vol. 69(4), pages 415-458, November.
    18. Marco Cantamessa & Valentina Gatteschi & Guido Perboli & Mariangela Rosano, 2018. "Startups’ Roads to Failure," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    19. Silvia Sanasi, 2023. "Entrepreneurial experimentation in business model dynamics: Current understanding and future opportunities," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 805-836, June.
    20. Krammer, Sorin M.S., 2022. "Navigating the New Normal: Which firms have adapted better to the COVID-19 disruption?," Technovation, Elsevier, vol. 110(C).
    21. Giones, Ferran & Brem, Alexander & Berger, Andreas, 2019. "Strategic decisions in turbulent times: Lessons from the energy industry," Business Horizons, Elsevier, vol. 62(2), pages 215-225.
    22. Rosca, Eugenia & Agarwal, Nivedita & Brem, Alexander, 2020. "Women entrepreneurs as agents of change: A comparative analysis of social entrepreneurship processes in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    23. Chengbin, Wang & Hongbin, Wang & Min, Dai & Yongyan, Fang, 2022. "Lean Startup Approaches(LSAs): Convergence, Integration and Improvement," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    24. Azlina Mohamad & Adriana Mohd Rizal & Suzilawati Kamarudin & Musli Sahimi, 2022. "Exploring the Co-Creation of Small and Medium Enterprises, and Service Providers Enabled by Digital Interactive Platforms for Internationalization: A Case Study in Malaysia," Sustainability, MDPI, vol. 14(23), pages 1-24, December.
    25. Eric Christian Brun, 2019. "Understanding a Business Incubator as a Start-Up Factory: A Value Chain Model Perspective," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 1-28, May.

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