Entrepreneurial bricolage and its effects on new venture growth and adaptiveness in an emerging economy
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Entrepreneurial bricolage and its effects on new venture growth and adaptiveness in an emerging economy Xiaoyu Yu 1 & Yajie Li 1
& Zhongfeng
Su 2 & Yida Tao 1 & Bang Nguyen 3 & Fan Xia 4
# Springer Science+Business Media, LLC, part of Springer Nature 2019
Abstract Driven by solid economic developments, emerging economies are experiencing significant institutional change, particularly in regulatory structures and market systems. Coupled with fierce market competition and reforms, serious challenges for the sustainable development of new ventures are created due to smallness and newness liabilities. This study examines how new ventures grow and adapt to the rapid environmental shifts in emerging economies by exploring the effects of entrepreneurial bricolage. This study found that entrepreneurial bricolage has a positive impact on both new venture growth and adaptiveness. Further, institutional voids have contrasting effects on these two relationships. The effectiveness of entrepreneurial bricolage on new venture growth is stronger in a context with serious institutional voids, while the effectiveness of entrepreneurial bricolage on new venture adaptiveness is weaker in a context with serious institutional voids. These findings not only enrich our knowledge on the implications of entrepreneurial bricolage, but also advance our understanding of the emerging economy context. Keywords Entrepreneurial bricolage . Growth . Adaptiveness . Institutional voids .
Emerging economy . New venture . Sustainable development . China Emerging economies are experiencing significant institutional changes with respect to regulatory adjustments and the emergence of new market systems (Alvarez, Barney, & Newman, 2015), often driven by increased growth in economic development (Ahlstrom, 2010; Tomizawa, Zhao, Bassellier, & Ahlstrom, 2019). Yet growth also brings marketization reforms coupled with heightened competition (Chari & Banalieva, 2015), creating challenges for new venture development (Cope, 2011; McGrath, 1999; Shepherd, 2003; Singh, Corner, & Pavlovich, 2007). Yet new ventures not only face challenges in how to grow, but also how to adapt and survive from uncertain changes from both market and institutional environments (Zhou & Li, 2010). Thus, a key issue in the
* Yajie Li [email protected] Extended author information available on the last page of the article
X. Yu et al.
development of sustainable competitive advantage for new ventures in emerging economies is to take account of factors that lead to both growth and adaptiveness under the more turbulent conditions commonly present in those economies (Meyer & Peng, 2016). Prior literature has tended to address the issues of growth and adaptiveness separately, particularly utilizing the resource-based view and organization theory. Scholars argue that valuable, rare, inimitable and non-substitutable (VRIN) resources is a source of firm heterogeneity that generates superior performance and competitive advantage (Barney, 1991; Black & Boal, 1994; Reed & DeFillippi, 1990).
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