IDEAS home Printed from https://ideas.repec.org/a/taf/ujbmxx/v57y2019i4p1637-1660.html
   My bibliography  Save this article

Full Steam Ahead or Abandon Ship? An Empirical Investigation of Complete Pivot Decisions

Author

Listed:
  • Matthew S. Wood
  • Leslie E. Palich
  • Russell E. Browder

Abstract

New products or services often misalign with customer preferences, and sometimes these initial offerings must be abandoned and replaced. Factors influencing these “complete pivot” decisions are poorly understood. We use behavioral decision theory to develop a theoretical model of pivot decisions that tests our predictions via a conjoint analysis experiment. We find that magnitude of the miss (revenues compared to plan), length of the runway (cash available/burn rate), and attribution for the miss (reason for customer misreads) significantly influence complete pivot decisions, and we simultaneously consider interactions. Individual grit and impulsiveness also shape the effects of some attributes.

Suggested Citation

  • Matthew S. Wood & Leslie E. Palich & Russell E. Browder, 2019. "Full Steam Ahead or Abandon Ship? An Empirical Investigation of Complete Pivot Decisions," Journal of Small Business Management, Taylor & Francis Journals, vol. 57(4), pages 1637-1660, October.
    • Handle: RePEc:taf:ujbmxx:v:57:y:2019:i:4:p:1637-1660
    DOI: 10.1111/jsbm.12437
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/jsbm.12437
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1111/jsbm.12437?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.

    Citations

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


    Cited by:

    1. Stratos Ramoglou & William B. Gartner, 2023. "A Historical Intervention in the “Opportunity Wars†: Forgotten Scholarship, the Discovery/Creation Disruption, and Moving Forward by Looking Backward," Entrepreneurship Theory and Practice, , vol. 47(4), pages 1521-1538, July.
    2. Angus, Ryan W. & Houghton, Jeffery D. & Neck, Christopher B. & Kip Holderness Jr., D., 2024. "Who responds to critical feedback? The effects of self-leadership on entrepreneurial product pivoting behavior," Journal of Business Research, Elsevier, vol. 172(C).
    3. Maria Elisavet Balta & Thanos Papadopoulos & Konstantina Spanaki, 2024. "Business model pivoting and digital technologies in turbulent environments," Post-Print hal-04513406, HAL.
    4. Vatankhah, Sanaz & Bamshad, Vahideh & Altinay, Levent & De Vita, Glauco, 2023. "Understanding business model development through the lens of complexity theory: Enablers and barriers," Journal of Business Research, Elsevier, vol. 155(PA).

    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:taf:ujbmxx:v:57:y:2019:i:4:p:1637-1660. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/ujbm .

    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.